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. 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 major market averages continue to trundle higher, seemingly invincible to anything more than a brief sell-off that only serves to bring leading stocks into lower-risk entries along logical areas of support. On Thursday, a big futures-led gap-down open found support near the lows, resulting in the NASDAQ Composite Index shaking out down to its 20-dema, where it found support. This coincided with a number of leading stocks acting in similar fashion. On Friday, options expiration, the index churned around in a very narrow gap-up range on higher volume. This looks a little bearish, but we shall see how this resolves in the coming week as there are a number of big-NASDAQ names set to report earnings. The prior Friday also showed churning action, which did result in Thursday's brief pullback, but the index has since gone higher.
Meanwhile, the Dow Jones Industrials Index is going parabolic, trading very heavy aggregate volume among Dow 30 stocks on Friday, which is what is shown on this chart instead of NYSE volume. This shows the movement into big-cap names as stocks becomes the new bonds, where money continues to pour in as it seeks a home in larger, more established names. Whether the parabolic move we see among the Dow 30 stocks is signalling a potential climactic sort of top cannot be known, since a sharp upside move like this may simply end up consolidating in a tight range. More evidence would be necessary before making such a call, but for now the market trend remains up.
The Market Direction Model (MDM) remains on its September 8, 2017 buy signal.
Removed from the List this Week: None.
Added to the List: We may add a name or two after further review this weekend.
Focus List Stocks Expected to Report Earnings this Week: Vertex Pharmaceuticals (VRTX) on Wednesday after the close.
The only name on the list we consider actionable at this time because it has already reported earnings is Netflix (NFLX), which sold off after earnings on Monday. However, as we have noted in our morning Focus List Notes since then, a pullback to the 20-dema and the top of the prior base breakout point would potentially provide a lower-risk entry opportunity. That occurred on Thursday as the stock pulled into the 20-dema and found support rallying off the line to close near the peak of its daily trading range and only down slightly for the day. Volume had also declined substantially on Thursday compared to the heavier selling levels seen on on Tuesday and Wednesday, coming in at -4% below-average.
Over the next two weeks, the rest of the names on the Focus List will report earnings, and we have listed the expected earnings report dates on the Focus List spreadsheet shown at the top of this report. One can also confirm the expected report dates by contacting the companies themselves or by checking the company websites.