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VoSI Market and Report Watch List Review for the Week Ended August 9, 2019

Current Report Watch List
The VoSI Report Watch 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 List can be purchased. The following notes are intended to assist in this process. Please note that members can enlarge the 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 major indexes reached a near-term climactic low on Wednesday, leading to a sharp rally on Thursday that carried the NASDAQ Composite and the S&P 500 Indexes back above their respective 50-day moving averages. Both indexes reversed back below the moving average on Friday, however, volume was lighter vs. Thursday's levels. Meanwhile, the Dow and the small-cap Russell 2000 Indexes have remained below their 50-dmas. The indexes currently lie at a crossroads, pending their ultimate resolution at the 50-dma.

The Market Direction Model (MDM) is currently on a cash signal.

Focus List Stocks Expected to Report Earnings this Week: None.

We have removed several names from the list as they have broken down and no longer appear actionable as long ideas. These include AAPL, AMZN, CYBR, FB, NOW, SWAV, TROX and VIOT. In some cases, as with Facebook (FB), the stock looks more like a short at the 50-dma.

Among stocks on the list, Advanced Micro Devices (AMD) staged a huge move on Thursday on news that Alphabet (GOOG) and Twitter (TWTR) will be using their newest chips. Technically that could have been played as a BGU or even a moving-average undercut & rally as the stock opened just above the 50-dma on Thursday. Note also that AMD posted a U&R long set-up two days before the news hit as it undercut and rallied back above the prior late June low. We would favor pullbacks into the 32-33 price area as lower-risk entries as the stock runs into resistance along the prior highs in the 34-35 price area.

Zoom Video Communications (ZM) is sitting tight at its 10-dma, 20-dema, and 50-dma as volume dries up to the lowest daily level in the stock's short history. This can be bought here using the 50-dma as a tight selling guide.

CrowdStrike (CRWD), which we first reported on as a BGU three weeks ago, demonstrates the utility of looking for pullbacks into the 20-dema on sharp volume dry-ups, known acronymically as a VDU or more colorfully as a "VooDoo" pullback. The stock rallied sharply on Thursday and Friday to post a new closing high on higher volume. It is slightly extended here, but can be watched for pullbacks closer to the 10-dma as potentially lower-risk entries.

Invitae (NVTA) can be watched here as it pulls back to the top of its base and its recent trendline breakout. The company report earnings on Tuesday after the close and gapped up sharply on Wednesday to new highs but stalled on heavy volume. The stock is now pulling into its 10-dma as volume declines, but may pull back further to fill the prior gap and test the 20-dema ahead of the company pricing a 3.8 million share secondary offering that was announced this past week. Once the offering is priced and the new shares are absorbed, the stock may stabilize and offer a more reliable entry opportunity.

Twitter (TWTR) is starting to settle down after a shakeout down to its 20-dema where it found support and then rallied back above the prior BGU intraday low at $40. That qualified as a U&R long entry at that point, and the stock has edged higher from there along its 10-dma. Further pullbacks to the 20-dema would provide the best lower-risk entry opportunities as the 20-dema moves higher to catch up to the current stock price.

Given the capricious nature of the market currently, we feel that those looking to buy stocks should wait for pullbacks to logical areas of support such as key moving averages or look for U&R type set-ups off of lows. Focusing on opportunistic weakness rather than chasing strength can be helpful in avoiding bigger losses when the market comes in on news. Stocks on the list should be reviewed for potential support levels on pullbacks so that awareness of possible opportunities entries is enhanced.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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