Current Report Watch List
The VoSI Report Watch List is a compilation and reference list of stocks for which Pocket Pivot or Buyable Gap-Up Reports have been issued. It is not intended as a "buy list" or a list of immediately actionable recommendations. Stocks on the List may or may not be in proper buy positions, and investors should exercise discretion and proper judgement in determining when and where stocks on the List can be purchased. The following notes are intended to assist in this process. Please note that members can enlarge the List image by clicking on the body of the email and then holding the Control Key while pressing the "+" key until it is large enough to read.
The U.S.-China trade war heated up on Friday, sending the major market indexes breaking sharply to the downside. The NASDAQ Composite Index peeled away from its 50-dma on Friday in a huge price break on heavy selling volume. It is now testing the prior lows of its very volatile three-week price range as the market remains in a correction off the recent highs. We believe that investors seeking to ride intermediate-term trends should remain idle for now, while rapid-fire short-term traders might be able to take advantage of the volatility on a swing-trading or even day-trading basis. This topic is often covered in our weekly live webinars.
The Market Direction Model (MDM) reversed a buy signal earlier in the week to remain on a cash signal for the week. Extreme, trendless volatility that suddenly changes direction based on constantly shifting news on the trade front, from the Fed, and other sources such as the unrest in Hong Kong makes trend-following challenging to say the least in such an environment.
Removed from the List this Week: NXP Semiconductor (NXPI) and ZScaler (ZS).
Focus List Stocks Expected to Report Earnings this Week: Heico Corp. (HEI) on Tuesday
The negative trade news on Friday sent semiconductor names on the Report Watch List spinning to the downside on heavy volume. Advanced Micro Devices (AMD) and NXP Semiconductors (NXPI) both broke through their 50-dmas on heavy selling Friday. ZScaler (ZS) slashed below its 20-dema earlier in the week. The daily chart shows a sharp break below the neckline of what looks like a fractal head and shoulders formation. We would not try and short the stock here, however, focusing instead on the potential for weak rallies up into the rapidly descending 10-dma and 20-dema as possible short-sale entries. However, keep in mind that ZS is expected to report earnings in early September.
We reported early on Friday on the Direxion Daily Junior Gold Miners Index Bull 3x Shares (JNUG) as a 5-day pocket pivot, but it fell short of a 10-day pocket pivot as volume tapered off into the end of the day. The JNUG is a three-times leveraged ETF consisting of a leveraged position in the Van Eck Vectors Junior Gold Miners Index (GDXJ). The GDXJ in turn owns mostly mid-cap and small-cap gold miners.
While gold miners are of course correlated to movements in the price of gold and silver, both the yellow and white metals remain the obvious and excellent pure-play vehicles for price moves in both. We have previously issued Pocket Pivot and Buyable Gap-Up Reports for both the SPDR Gold Shares (GLD) and the iShares Silver Trust (SLV) which serve as direct proxies for gold and silver. Both remain in strong uptrends. We believe that further upside will certainly be seen in both as long as central banks around the globe remain in a "race to zero" as they cut rates in the cathartic attempts to revive their respective national economies.
Gil first discussed the SLV as buyable in the 14.00-14.25 price range back in July in one of his VooDoo(TM) Reports. It posted a higher high on Friday as it attempts to clear its early 2018 highs. The gold-to-silver ratio is currently near long-term highs, setting up the potential for silver to outperform gold as the ratio contracts. The SLV has outperformed the GLD since late May, and both silver and gold have outperformed the S&P 500 year-to-date. A sign of the times as the Age of QE rages on.