Current Report Watch 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.
The market displayed schizophrenic action this week as a higher-volume breakout to new highs on Wednesday by the NASDAQ Composite Index was followed an even higher-volume 1% decline on Thursday. This, in turn, was followed by a 1% move higher on Friday, putting the index back in new-high territory. This week's Fed policy announcement will likely be critical for the market as it may signal further rate cuts to come. If the market is in any way disappointed with the announcement relative to its current expectations, then we could see a sell-off in response. A favorable announcement, of course, could push the market to fresh highs. So far, Fed policy has remained dovish since Chairperson Powell's about face in late December after the first Christmas crash on record occurred that was induced by the prospect of further rate hikes. Other central banks have followed en masse with equivalent reversals of policy from one of tightening to loosening despite interest rates at record lows, and even negative as in the case of Germany, Switzerland, and Japan. An upcoming piece on the long term trend in the price of bitcoin and gold will underscore what QEInfinity is doing to the value of the U.S. dollar and fiat currencies in general.
The Market Direction Model (MDM) remains on a buy signal as it continues to profit from general uptrends in the major averages.
Stocks on the Report Watch List Expected to Report Earnings this Week:
Advanced Micro Devices (AMD) and Paycom Software (PAYC) on Tuesday after the close.
We put out new reports on three new stocks this week. The first was Snap (SNAP) as it set up to post a buyable gap-up on Wednesday after it reported earnings on Tuesday after the close. The stock quickly set a low at 16.08, just a few cents below its opening price, and then took off from there.The stock is well extended at this point, such that pullbacks closer to the 16.08 price level would offer lower-risk entries.
The second was Twitter (TWTR) which also posted a buyable gap-up move on Friday after it reported on Thursday after the close. Like SNAP, the stock quickly set an intraday low at an even $40 a share and then launched higher from there.
The last was another buyable gap-up situation. New Oriental Education & Tech Group (EDU) gapped up on Tuesday after earnings, but has simply held in a tight range since then. It remains within buying range of Tuesday's BGU using the 104.83 intraday low as your selling guide.
By far one of the highest-velocity names we have reported on recently has been cyber-security name CrowdStrike (CRWD). It was also a buyable gap-up that we reported on two Fridays ago. At that point CRWD had posted a buyable gap-upo move after earnings with an 80.75 intraday low. The stock briefly came well into buying range of that low on Monday and then launched higher from there. It is now a matter of seeing where it next sets up as the 10-day and 20-dema are rising rapidly to catch up to the stock..
Watching stocks closely after earnings for low-risk entries is one very strong strategy to employ during earnings season. A good example of this was Atlassian (TEAM) on Friday morning after it reported earnings the afternoon before. TEAM has been on the Report Watch List for some time now. It opened slightly on Friday, offering a lower-risk entry at the 20-dema, and then launched higher from there.
Facebook (FB) reported earnings on Wednesday after the close and initially gapped slightly to the upside on Thursday morning. That move quickly reversed and the stock turned negative as it tested its 20-dema. On Friday, FB undercut its 20-dema on an intraday basis and then rallied to close back above the line. This shakeout through the 20-dema sets the stock up as a moving-average undercut & rally set-up (MAU&R) using the 20-dema as a tight selling guide.
Earnings season continues to provide a variety of interesting, tradeable action. In many cases, the sharp price movements after earnings reports have offered high time-value and very actionable set-ups both long and short. Keep track of earnings report dates for all stocks on your watch lists, and be prepared to take advantage of the set-ups that can emerge once they report earnings. The past six trading days have seen such set-ups emerge in all of the above stocks, and these provide strong examples of what to look for in this regard.