Current Focus List
The VoSI Focus List is a compilation and reference list of stocks for which Pocket Pivot or Buyable Gap-Up Reports have been issued and which have been deemed suitable for inclusion on the Focus List. Not all stocks for which a Pocket Pivot or Buyable Gap-Up report has been issued will necessarily be added to the list. 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 Focus List can be purchased. The following notes are intended to assist in this process. Please note that members can enlarge the Focus 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.
General Observations:
Major market indexes made higher highs on Friday as volume declined. The NASDAQ Composite and S&P 500 Indexes both made all-time highs while the Dow continues to move higher in its quest to clear its all-time high of 29,568.57, closing Friday at 28,653.87. Meanwhile, the small-cap Russell 200 Index has lagged but continues to consolidate along its 20-dema. Otherwise, the market trend as defined by the Big-Three market indexes, the NASDAQ Composite, S&P 500 and the Dow, remains decidedly to the upside.
The Market Direction Model (MDM) remains on a BUY signal.
Focus List Stocks Expected to Report Earnings this Week: None.
Notable Action:
Facebook (FB) is attempting to clear the $300 Century Mark. It did so on Wednesday on heavy buying volume but over the next two days drifted back in as volume declined. We would watch for either a low-volume pullback to the 10-dma as a lower-risk long entry point or a decisive move above the $300 level which would again trigger a long entry based on Jesse Livermore's Century Mark Rule.
Apple (AAPL) is meanwhile holding tight along the $500 Century Mark. Volume has been high as it has stalled along the $500 level as buyers run headlong into sellers and the stock churns around. We would watch this closely for resolution since as AAPL goes, so goes the market. If it can decisively clear the $500 level then it could trigger as a long entry per Jesse Livermore's Century Mark Rule. If it fails, then Livermore's Rule in Reverse for the short side could also come into play, and currently it is not clear how this will resolve based on the high-volume, albeit relatively tight, churning action.
Netflix (NFLX) was quite buyable along the 10-dma, 20-dema, and 50-dma earlier this past week, as we noted in last weekend's Focus List Review. NFLX launched on Wednesday in response to an analyst's upgrade and buy recommendation of Roku (ROKU). The strong buying has showed no follow-through so far as the stock sinks back to the downside on light volume. For now, only a constructive pullback to the rising 10-dma would offer a reference for a lower-risk entry position.
Grayscale Bitcoin Trust (GBTC) is pulling into support along the top of its prior base and the 20-dema. For now it appears that the top of the prior base offers more solid support than the 20-dema as volume dries up sharply during this latest pullback. This offers a lower-risk entry spot using the top of the prior base as a maximum selling guide, but remember that Bitcoin, hence GBTC, tends to be volatile, so position-size accordingly.
The Sprott Physical Gold Trust (PHYS) and the Sprott Physical Silver Trust (PSLV) remain in consolidations following their strong gains during July into early August. The weekly chart of PHYS shows supporting action on this past week's pullback to the 10-week moving average. Pullbacks to the 10-week line and/or the 50-day line on the daily chart are your lower-risk entry opportunities when they occur.
The Sprott Physical Silver Trust (PSLV) is holding up very nicely within what is so far a three-week flag. The 10-week line is racing to catch up to the current price. For now, we reference the 20-dema on the daily chart as the nearest level of buyable support, in our view. As the 10-week line catches up on the weekly chart it may eventually offer a area of primary or secondary support depending on how long this flag holds up before it resolves one way or the other.
With respect to precious metals mining stocks on the Focus List, Kirkland Lake Gold (KL) is distinguishing itself as a strong leader. On the weekly chart we can see that it has recently broken out of a long-term price structure extending back to last year and is holding very tight within a four-week flag formation. Note the tight weekly closes three out of the last four weeks as volume dried up sharply this past week. This remains buyable on pullbacks to the 20-dema on the daily chart, not shown.
Of course, Pan-American Silver (PAAS) is no slouch either, and it has been streaking higher off the March lows for many weeks now. Note how strongly the stock was acting back in late February as it was breaking out of a base before the corona crisis hit. For now, it appears to be buyable on tests of the 10-week moving average which it has held all the way up from the March lows.
For the most part, leading stocks have been running for a while, and we find there is less to do in the way of fresh, actionable set-ups. That is not necessarily a problem as it may simply be a matter of letting things play out as we await the next wave of set-ups. Meanwhile, as we see set-ups appear, albeit on a more limited basis, we will report on them as appropriate.