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.
The month of September has gotten off to a poor start, with all major indexes except the Dow trading down for the first four days of the month. The NASDAQ Composite Index posted two distribution days off the peak to start the week off, and by Friday had logged four straight down days, all on above-average volume. Trade War rhetoric continues to add a volatile spin to the market, with intraday reversals common based on the latest trade-related news. In addition, corporate debt is at an all-time high which will be discussed further in Monday's PMP report. Caution is advised.
The instability of the current market environment is supported by the fact that there have been some viable short-sale set-ups. Two weeks ago we reported on Netflix (NFLX) and Tesla (TSLA) as Short-Sale Set-Ups. NFLX was shortable at the 50-dma, and it has since broken further to the downside.
Near-term resistance for NFLX appears to be just above the 20-dema and the 356 price level. We would view rallies back up towards that price level as potentially shortable, but the stock was last shortable along the 50-dma per our prior Short-Sale Set-Up report. From here, our downside target would be the prior August low and the 200-dma.
TSLA has split wide open after more negative news hits the stock this past week, including internet video footage of CEO Elon Musk allegedly smoking cannabis during an interview on the Joe Rogan Experience podcast. That sent the stock gapping down through the May lows on a test of the April lows. From the original entry along the 200-dma, the stock has dropped a total of just over 22% in eight trading days. We would therefore use the May low at 273.42 as a trailing stop. However, anyone short the stock from the 200-dma could handle it differently depending on their longer-term views.
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.
Amazon.com (AMZN) is the only Focus List name that can be considered in a lower-risk entry position as it pulls into its 20-dema with volume declining.