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.
While the S&P 500 Index posted all-time closes this past week, the market remains something of a quagmire with respect to clear leadership as individual stocks flip-flop within their patterns. For this reason, we continue to find NOTHING that fits the criteria necessary for inclusion on the Focus List. Meanwhile, the NASDAQ Composite Index is chopping its way back up towards its prior highs as volume declines and the index remains in an overall trendless state as it has since late February. We see no reason for intermediate-trend-following investors to be involved currently, but at some point the situation will gain clarity, and when it does we will issue fresh reports as appropriate. In the meantime, it is absurd for the impatient to expect that the Focus List “should” be populated with a cornucopia of long ideas when nothing fits the necessary criteria. That will remain the case until we begin to see evidence to the contrary.
The Market Direction Model (MDM) remains on a CASH signal.
The so-callled inflation trade lost momentum this week as the 10-Year Treasury Yield declined to levels not seen since early March, ending the week at 1,47% and well off its March peak of 1.74%. Precious metals respond accordinglyo the 10-Year Yield since March. The Sprott Physical Gold Trust (PHYS) is again testing its 20-day exponential moving average after an extended uptrend from the late March lows. If rates continues to decline in the near-term, we would not be surprised to see it test the 200-day line. Any portion of any position purchased above the 200-day line could be managed using the 20-dema as a selling guide.
The same risk-management approach would apply to the Sprott Physical Silver Trust (PSLV) which remains above its 20-dema. If it breaches the 20-dema then we would not be surprised to see it test its 50-day moving average so controlling risk for any portion of any position purchases above the 50-day line is sensible in our view given the uncertainty surrounding interest rates, inflation, and the state of QE. The Fed policy announcement expected this Wednesday may add clarity with respect to what has been moving the markets around as of late, so that may be a significant market-moving event. We will be watching it closely.