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.
General Observations:
The indexes are currently consolidating prior gains off the lows of two weeks ago. The S&P 500 and the Dow Jones Industrials Indexes have made all-time highs, as has the very broad NYSE Composite Index. Meanwhile,the NASDAQ Composite Index posted a new all-time closing high on Wednesday and has since been tracking sideways as volume declines. Objectively, this is constructive action.
Reflecting the current rally phase that is in force, the Market Direction Model (MDM) is currently on a buy sell signal. The VIX Volatility Model (VVM) is currently on a provisional sell signal.
Removed from the List this Week: GrubHub (GRUB), after violating its 20-dema.
Focus List Stocks Expected to Report Earnings this Week: None.
Notable Action:
Amazon.com (AMZN) dipped back below its 50-dma on Friday after posting a pocket pivot coming up through the line on Thursday on lighter volume, albeit above-average. The stock needs to hold maximum downside support at the 10-dma and 20-dema for Thursday's pocket pivot to remain viable.
Arista Networks (ANET) continues to hold along its 10-dma and 20-dema as volume remains light. This is still in a lower-risk entry position here using the 20-dema as a tight selling guide.
Appian (APPN) is extended. We would prefer to maintain an opportunistic approach here, looking to buy deeper pullbacks to the 20-dema down near the 24 price level.
Alibaba (BABA) is within range of Wednesday's pocket pivot breakout, using the 10-dma as your selling guide for share purchases up at these levels.
Broadcom (AVGO) was added to the list on Friday by virtue of its pocket pivot at the confluence of the 10-dma, 20-dema, and 50-dma. This is buyable using the 50-dma as a selling guide.
Electronic Arts (EA) is holding tight along its 10-dma and 20-dema and remains in a lower-risk entry position using the 20-dema or 50-dma as selling guides.
Facebook (FB) held support at its 20-dema on Friday as volume came in at about average on the day. This would put it in a lower-risk entry position here, using the 20-dema as a tight selling guide.
FireEye (FEYE) remains extended 9.57% above its closing price on September 7th, when we first reported on the stock as a buyable gap-up (BGU). Watch for the 10-dma to catch up to the stock before another lower-risk add point can occur.
GrubHub (GRUB) has violated its 20-dema and has therefore been removed from the list.
JD.com (JD) is extended after posting two five-day pocket pivots as it came up through the 10-dma, 20-dema, and then the 50-dma earlier in the week.
Momo (MOMO) continues to drift lower but volume dried up to -51% below-average on Friday, so we are on the alert for any kind of move back above the 36.88 prior low in the two-week price range. This would trigger an undercut & rally (U&R) long entry set-up at that point.
Netflix (NFLX) is now pulling back after getting extended to the upside as it forms an eight-week cup formation. We would look for a constructive handle to form along the rising 10-dma or 20-dema once they catch up to the stock price.
Snap (SNAP) is in a lower-risk entry position along its 10-dma as volume dried up to -47% below average on Thursday. Your selling guide here can either be the 20-dema or the 50-dma, depending on your risk preferences.
Take-Two Interactive (TTWO) remains within buying range of last week's continuation pocket pivot at the 10-d
ma. Shares purchased up at these levels should use the 10-dma as a tight selling guide since we would expect the stock to move higher from here after the continuation pocket pivot.
Vertex Pharmaceuticals (VRTX) has failed to hold near-term support along its 10-dma and 20-dema and is now testing the 50-dma. This does put it in a "last stand" entry position along the 50-dma. Another possibility is an undercut of the prior 147.18 low in its current eight-week base, which could then trigger an undercut & rally entry at that point. Therefore it would be prudent to use the 50-dma as a tight selling guide if the stock cannot hold support here, with the option of looking for a test and undercut of the 147.18 low as a more opportunistic, Ugly Duckling type of entry.
Weight Watchers (WTW) closed six cents below its 50-dma on Friday as volume dried up to -59% below-average. The stock would need to hold within 1-2% of the 50-dma to remain viable as a potential lower-risk entry here along the 50-dma.