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VoSI Market & Report Watch List Review for the Week Ended February 7, 2020

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: 
Major market indexes completely shrugged off the bearish sell-off two Fridays ago and shot back to the upside to post new all-time highs. Of the Big-Three indexes only the NASDAQ Composite Index remains in new-high price ground. The market sold off on Friday on lighter volume following a stalling and churning day at the highs on Wednesday on heavy volume.

The indexes are back in an extended position and may be vulnerable to a pullback from here amid the current Coronavirus outbreak. The assumption that all was well and that the virus was spreading at a slower pace helped fuel the rally early in the week. This was bolstered by the announcement that the Chinese central bank, the People's Bank of China, had injected 1.5 trillion Yuan into its markets on Sunday and Monday our time. At the same time, the Fed was also continuing to pump liquidity into the U.S. overnight repo market. Nevertheless, the situation remains fluid.

The Market Direction Model (MDM) remains on a BUY signal.

Focus List Stocks Expected to Report Earnings this Week: Adaptive Biotechnologies (ADPT), Shopify (SHOP), and Agnico-Eagle  Mines (AEM). See list above for expected earnings report dates.

Notable Action: 
Activision Blizzard (ATVI) broke out on Friday after earnings, but the move is occurring from a very v-shaped position. Note that the U&R down along the lows earlier in the week would have acted as a lower-risk entry, but ahead of earnings it is unlikely one would have chosen to hold. ATVI stalled along the prior highs so it may need to settle down in here along the 10-dma.

Biogen (BIIB) shot higher after winning a patent suit and is now extended. The ironic aspect of this is that the stock was looking pretty bad ahead of the news, and is suddenly up big on heavy volume after the news.

Facebook (FB) has rallied back above its 50-dam and is now pushing up into the 20-dema. We have recently report on the stock as a possible short-sale set-up, but this will likely depend on the general market action going forward. In its current position the stock could reverse off the 20-dema as a short-sale play at that point. If it can continue to hold the 50-dma it may make a move towards its prior highs within the context of a continuing market rally.   

Inphi (IPHI) have a huge reversal on Wednesday after reporting earnings and closed roughly where it ended the prior day. The stock has since tucked into its 10-dam as volume has receded. This could serve as a lower-risk entry spot using the 10-dma as a tight selling guide.

Tesla (TSLA) appears to have put in a climax top but also demonstrates that climax tops are not necessarily quantitative but qualitative events. One can count the number of  days up in a row and whether the stock has had the highest point move in any single day during the move and try to determine a climax top in quantitative fashion, but stocks can often ignore such quantitative “rules.” The climactic action became more evident on Wednesday when the stock finally stalled on an approach to the $1,000 price level but eventually failed to hold the $900 Century Mark. It then tested the 10-dma on Thursday and held, but remains in no-man’s land.

The qualitative aspects of the final climax top on Wednesday were evident by the sudden interest in the stock from the media where certain financials cable TV stations were conducting “round table discussions” on how investors can ride the Tesla wave and where they can “get in.” All of this of course seems moot and quite after-the-fact, frankly. In addition, one portfolio manager came on and indicated that the stock could hit $15,000 a share. Media pundits were also gushing over the sudden and massive increase in CEO Elon Musk’s net worth as a result of TSLA stock rising over 100 points a day. This sort of anecdotal evidence provides a distinctly qualitative side to the final top.

Visa (V) is holding tight along its 10-dma which would put it in a lower-risk entry position using the 10-dma and 20-dema as tight selling guides. Note that the stock is also holding the $200 Century Mark, just below the 20-dema.

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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