Current Report Watch List
The 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.
The general market displayed volatile action this week, stalling and reversing on Wednesday after an initial rally in response to the Fed policy announcement that day. The next day, Thursday, the market and leading stocks launched higher as the indexes posted higher highs in an impressive display. The schizophrenic nature of this market, however, came into play on Friday as the market reversed and negated Thursday's gains and more on heavy volume. The NASDAQ Composite Index took the brunt of the selling on Friday as it dropped -2.5% in an ugly reversal off its peak.
The Market Direction Model (MDM) remains on a buy signal.
Stocks on the List Expected to Report Earnings this Week: Cronos (CRON) on Tuesday before the open.
The list of stocks reported on since the Christmas Eve market lows at the top of this report is formatted to show the price and volume of each stock. The fifth, sixth, an seventh columns from the right show, in order, the price change, the percentage price change, and the percentage change in volume relative to the 50-day moving average of volume. At a glance, we can see that roughly 2/3rds of the stocks on the list were down more than -3% on Friday, and more than half declined on higher volume.
In most cases, stocks are attempting to hold support at least at their 20-day exponential moving averages, but must be watched for possible breaches of the line and other areas of key support in the coming days. We did see some extremely deleterious action in Dexcom (DXCM) this week, which slashed below its 50-dma on Friday on heavy volume. Note that the stock was already dropping below the 50-dma on Thursday, even as the general market was rallying vigorously, thus would have been sold on this first breach.
Electronic Arts (EA) was reported on as a pocket pivot on Thursday morning, and it had a strong move into the close. Given the general market action on Friday, we would keep a tight leash on this at the 200-dma which serves as a tight selling guide.
We would advise members to review trailing stops and profit objectives in order to prepare for the potential of a steeper market pullback following Friday's bearish action. An example of an extended stock for which profits might be taken is Yeti (YETI), which has nearly doubled since we first reported on the stock in early January. Taking new positions is not advisable unless and until concrete, lower-risk entries can be determined. Raising cash is also prudent as it will put one in a position to take advantage of a pullback that produces lower-risk entries if the general market eventually finds it feet, although this is not clear at this time. Based on Friday's action, we feel that the best offense becomes a strong defense.