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. 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:
The Dow Jones Industrials Index has now posted nine straight up days and new highs in a row as the S&P 500 Index lags but remains in a tight range along its 10-day moving average in constructive fashion. The NASDAQ Composite has formed an "L formation, which could resolve as a bear flag. However, the index continues to hold tight along near-term support at the 20-dema, and there is still the potential for this L-formation to resolve to the upside.
Investors should remain fluid and flexible, responding to the general market and individual stock action as it unfolds in real-time. The question is whether the out-performance of the Dow will prevail and drag the S&P 500 and NASDAQ Composite up with it, or whether the weakness of the NASDAQ Composite will prevail and drag the other indexes down with it. This may become clearer as we progress further through the month of August.
The Focus List has dwindled to eight names. This naturally limits the number of long ideas one has to work with and so may be giving us some clues as to the current state of the market. A few are in actionable positions, however, and are discussed below.
The Market Direction Model (MDM) remains on a buy signal. The VIX Volatility Model (VVM) is currently on a sell signal.
Removed from the List this Week: Applied Optoelectronics (AAOI), Lumentum Holdings (LITE), Nutanix (NTNX), and Yext (YEXT).
Focus List Stocks Expected to Report Earnings this Week: Baozun (BZUN) after-hours on Thursday, August 10th (unconfirmed).
Notable Action:
Appian (APPN) reported earnings Thursday after the close and gapped down to the mid-18 price area and the top of the prior low-base range in the IPO base. It then rallied sharply on an intraday basis on heavy volume and closed near the top of its trading range at 19.71. Note that this also constitutes an undercut & rally move coming back up through the prior 19.02 low in the pattern, which is an actionable log set-up using the 19.02 as a selling guide. We would prefer to see a small pullback closer to the 19.02 price level as a better, lower-risk entry opportunity.
Netflix (NFLX) is holding in a flag formation as it dips below its 10-dma but remains above the 20-dema. It is also holding above the intraday low of its prior mid-July buyable gap-up move. This would bring the stock more into a buyable position using the 20-dema as a selling guide.
Take-Two Interactive (TTWO) posted a buyable gap-up on Thursday after reporting strong earnings on Wednesday after the close. The move also constituted a base breakout. The stock is holding above the 86.02 intraday low of Thursday's BGU price range, and so is in a buyable position using the 86.02 price level as a selling guide.
Veeva Systems (VEEV) is wavering here as it drops below its 50-dma without technically violating it. A violation would occur, however, if the stock drops and closed below the lows of seven trading days ago, when the stock first broke below the 50-dma on heavy selling volume. The company is expected to report earnings on August 29th.
