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.
A sharp divergence continues to play out between the NASDAQ Composite and the S&P 500, Dow, and Russell 2000 Indexes. The NASDAQ Composite remains below its 50-day moving average while the other three pushed into new-high price territory over the past week.
Higher interest rates have weight on high-PE, high PE-expansion tech names as well as stocks which were viewed as lockdown beneficiaries. The 10-Year Yield closed Friday at 1.635%, its highest level since February of last year. If rates continue to rise in the short term it may begin to weigh on other areas of the market, particularly in light of how extended the S&P 500, Dow and Russell 2000 are off their lows of two Fridays ago.
The Market Direction Model (MDM) switched to a CASH signal.on Tuesday, March 8th.
Bitcoin is pushing through the $60,000 level this weekend, but as we noted in last weekend’s Focus List Review, the Grayscale Bitcoin Trust (GBTC) was at a buy/re-entry point as it posted a moving average undercut & rally (MAU&R) on a shakeout at the 50-day moving average two Fridays ago. It is now following Bitcoin back up to the prior highs.
Bitcoin may be inspired by the $1.9 trillion poor-filled “stimulus” bill as this is sure to add to the dollar-devaluation argument. Talk by the Biden Administration of a $2 trillion “green new deal” bill will add further fuel to that fire, and over time this has to be a positive for alternative-currencies. Eventually, we would expect precious metals to begin rallying again, although in the near-term higher interest rates have been a headwind. The Sprott Physical Silver Trust (PSLV) is attempting to pull off an undercut & rally (U&R) move at the prior 9.41 low of February 4th. It closed Friday right at 9.41 after an intraday shakeout after clearing the 9.41 level earlier in the week. This may be a critical spot for the white metal, and could serve as an actionable long entry signal if the U&R can develop and hold up. Meanwhile, silver miners like First Majestic Silver (AG), Coeur Mining (CDE) and Gatos Silver (GATO) are holding up after posting their own U&Rs earlier in the week, which may bode well for the white metal itself.
We expect interest rates to continue rising, with the 10-Year Treasury Yield reaching 1.80% to 2.00% before the Fed steps in to regain control. In our view, rising rates are a harbinger of higher inflation to come, despite the Fed attempting to portray it as an “expression of confidence in the economy" that is all part of their grand plan. Higher rates will likely weigh on stocks, while pushing the dollar higher in the near-term, but at some point higher inflation begins to devalue the dollar, which is potentially a positive for alternative-currencies where our attention is currently focused given the MDM’s current CASH signal.