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:
A wedging rally in the NASDAQ Composite Index ended on Thursday when the tech-heavy index gapped back below its 50-day moving average on higher selling volume. The index stabilized on Friday as quarter-end quadruple-witching options expiration kept the index buoyant. Meanwhile, the S&P 500 remains above its own 20-day and 50-day moving averages as commodity-related names hold up relatively better.
Interest rates have continued to lead the market, particularly the high-PE and high PE-expansion names among tech and other similar areas of the market, around by the nose. The 10-Year Yield closed Friday at 1.732%, its highest levels since January of last year. Rising rates will likely keep the pressure on highly-valued areas of the market, with the possibility of a wholesale correction lurking in the shadows. But things change on a dime in this environment so every new day brings new data to assess.
For this reason, the Market Direction Model (MDM) remains on a CASH signal for now.
Notable Action:
Bitcoin cleared the $60,000 level this past week, helping to send the Grayscale Bitcoin Trust (GBTC) back up towards its prior highs. Two weeks ago we noted in this report that it had found buyable support at the 50-day moving average, where a lower-risk entry could be found. A pullback to the 20-dema on Wednesday offered another lower-risk entry and the GBTC is now extended from any buy points at this time.
As Bitcoin continues higher, the largest corporate owner of the crypto-currency, Microstrategy (MSTR) has headed in the opposite direction after a massive climactic top in early February. It has now retraced over half of that move and is trying to find support along its 50-day moving average. Friday's action constituted a single five-day pocket pivot, but volume was no doubt a function of quadruple-witching options expiration. We prefer to see a cluster of five-day pocket pivots in lieu of a single ten-day pocket pivot, so this is a developing situation and we will report on anything we feel is actionable in MSTR as appropriate.
Higher interest rates don't seem to be affecting precious metals as they did in late February and early March. The Sprott Physical Silver Trust (PSLV) has stabilized and closed Friday right at its February 5th low at 9.41.This keeps the U&R set-up we noted last weekend in play, but we would soon like to see the PSLV regain its 50-day moving average as confirmation.
Gold lags silver as the Sprott Physical Gold Trust (PHYS) remains well below its 50-day moving average. We have our eye on the prior 13.81 low from late November as a possible U&R long entry trigger point for now, but it may be notable that the yellow metal has been rallying over the past two weeks in the face of ever-higher interest rates.
