Current Focus 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 and which are still active. 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 market held its ground for the week after last week's sharp sell-off two Fridays ago off the prior highs. The market indexes finished this past week above the prior week's closing level. The indexes remain in sideways formations, with the Dow Jones Industrials Index now in a more than one-month long base formation. With the big-three market indexes holding well above their 200-day moving averages, the market uptrend remains intact, although we are seeing some leading stocks come under pressure. Therefore, it becomes a matter of watching your stocks carefully, and adhering to prudent risk-management.
The Market Direction Model (MDM) remains on a buy signal.
Stocks Expected to Report Earnings this Week: None.
Dexcom (DXCM) blew apart last week, and continued further below its 200-dma this past week. The stock broke its selling guides several trading days ago, as news of a competing glucose monitoring product from Abbott Laboratories (ABT) hit the stock. It does serve to illustrate the fact that some leaders are starting to break down in the current market environment, and despite the continued market uptrend, investors must know and stick to their selling guides.
Tandem Diabetes Care (TNDM) is a cousin to DXCM as a maker of diabetes products, and it has also come under pressure lately. After the buyable gap-up of over four weeks ago, which we reported on at that time, the stock pushed to all-time highs, peaking at 74.81. It has since pulled to within a point of the 60.16 intraday low of its February 27th buyable gap-up (BGU), reaching a low of 61.12 on Thursday of this past week before rebounding. Note, however, that Wednesday's action constituted a large-volume breach of the 20-dema on what started out as a 10-dma violation. TNDM has not violated the 10-dma since early January, therefore the 10-dma would have served as a selling guide per the Seven-Week Rule.
Cronos (CRON) is on the verge of a 50-dma violation. It is also hanging around the 18.72 low of February 7th, which could create a possible U&R. However, the stock attempted to do that on Thursday and failed. Aphria (APHA) is in a similar position but holding above its 50-dma on Friday as it attempts to post a U&R move back up through the 9/15 low of March 8th.
Electronic Arts (EA) continues to track tight sideways along its 10-dma following a strong-volume pocket pivot coming up through the 10-dma and 20-dema seven trading days ago on the chart. This keeps the stock within a lower-risk buy zone, using the 10-dma, 20-dema, or 50-dma as tight selling guides.
Lululemon Athletica (LULU) posted a buyable gap-up type of move on Thursday, but the stock failed to hold the 166.10 intraday low as it moved lower on Friday with volume. It closed about 2% below the 166.10 price level, within reasonable range of porosity below the BGU intraday low, but the action is not encouraging given the sharp market rally on Friday. If the stock can hold to within another 1% on the downside from here, it may remain viable as a BGU.
Stocks holding along their 10-dma: BA, EW, MIME.
Stocks holding along their 20-dema: NVTA (pulling back to 20-dema after strong upside run)