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:
Leading tech names ran into some selling on Thursday as the NASDAQ Composite Index posted a distribution day off its recent highs. The selling carried into the Friday open, but the index recovered to close positive on the day on light volume as sellers failed to swarm the market. The pullback in leading tech names was also logical within the context of their recent strength, which had resulted in many names becoming extended. In most cases, we find the pullbacks over the past 2-3 days to be constructive, and would continue to watch for lower-risk entries showing up at logical areas of support.
The S&P 500 Index avoided a distribution day on Thursday, while the Dow closed up on the day as money moved into industrials and financials. Both indexes ended the week at higher highers with the Dow posting its best weekly move in three months. Despite fears over the outcome of the weekend G-7 meeting, low expectations for the U.S.-North Korea Summit on Tuesday, and a Fed ready to raise interest rates again this Wednesday, the market uptrend remains intact.
The Market Direction Model (MDM) remains on a BUY signal.
Removed from the List this Week: None.
Focus List Stocks Expected to Report Earnings this Week: None.
Notable Action:
Amazon.com (AMZN) has pulled back over the past three days as volume has dried up. This is constructive action, and any further pullback to the 10-dma would offer a lower-risk entry opportunity.
Baozun (BZUN) has held support at its 10-dma as volume has declined. Given the extended position of the stock, we would look for a pullback to the 20-dema at 37.55 as a lower-risk, more opportunistic entry point.
Fortinet (FTNT) found support at its 20-dema on Friday - that was a lower-risk entry opportunity, per our prior notes on the stock.
Netflix (NFLX) has pulled into its 10-dma on light volume, which puts it in a lower-risk entry position given that it is not terribly extended on the upside.
Nvidia (NVDA) is holding tight sideways and has remained just above its 10-dma. Pullbacks to the 10-dma would offer lower-risk entries, although ideally we'd like to see a pullback to the 20-dema as the most opportunistic entry.
Square (SQ) pulled into its 10-dma on Thursday on heavy selling volume. It held the line on Friday and rallied. We would use pullbacks to the 20-dema as the most opportunistic entries.