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.
General Observations:
The NASDAQ Composite Index posted an all-time closing high on Friday on a favorable jobs report. A surprise 2.5 million jobs number from the Bureau of Labor Statistics vs. expectations of 8.5 million jobs lost sent the market rocketing higher on Friday, and is consistent with the notion that with such a ponderously extreme amount of QE liquidity out there, when news is on balance benign, the market will rally. The S&P 500 and Dow Indexes remain below all-time highs while the small-cap Russell 2000 Index regained its 200-day moving average for the first time since March on Friday.
The Market Direction Model (MDM) moved to a BUY signal on Monday, June 1st.
Notable Action:
The number of names on the Focus List has increased notably, and we are using a new format for the weekend Focus List Review by grouping charts according to its technical set-up or group thematic. On Friday, we saw Google (GOOG), Microsoft (MSFT), and Oracle (ORCL) post pocket pivots. All three stocks have posted prior pocket pivots (green arrows) as they have tracked along key moving averages on their charts. We have previously considered these to be in buyable positions along these moving averages, and that remains the case for now. If one chooses to buy Friday’s pocket pivots then one can use the 10-day moving average or 20-day exponential moving average as selling guides if the stock has held these moving averages for at least Seven weeks per the Seven-Week Rule. This means it has not violated (closed below, then moved below the low of that close) for 7 weeks the moving average one chooses to use as their selling guide. Should it violate the 10-day moving average in 7 weeks or less, one would switch to the 50-day moving average as their selling guide.
Advanced Micro Devices (AMD), Everquote (EVER), Facebook (FB), Netflix (NFLX), and Nvidia (NVDA) are all in potentially lower-risk entry positions based on tight action or pullbacks to key moving averages. AMD posted a single five-day pocket pivot at its 50-day moving average on Friday. This is a lower-risk entry here using the 50-day line as a selling guide. EVER pulled into its 10-day line on Friday and held support. It remains in a buyable position based on its recent base breakout. FB is holding very tight along its 10-day line and is in a lower-risk entry here using the 20-day exponential moving average as a tight selling guide. NFLX held support at its 50-day moving average which offers a lower-risk entry using the line as a selling guide. NVDA is holding tight along its 10-day line and posted a single five-day pocket pivot on Friday. It is in a lower-risk entry position using the 20-day exponential moving average as a maximum selling guide.
Apple (AAPL) and Tesla (TSLA), not shown, are slightly extended from their 10-day moving averages, but can be watched for pullbacks closer to the line as potentially lower-risk entries from current levels.
Friday’s jobs number took some of the emphasis off of precious metals and Bitcoin. However, in our view, the Fed will have no choice but to continue expanding its balance sheet and this therefore keeps the alternative-currency theme alive. The Grayscale Bitcoin Trust (GBTC) can be watched for retests of its 200-day moving average as lower-risk entry opportunities. Gold is pulling in but so far is holding support along the $1700 per ounce level. This corresponds to a test of the lows of its current two-month consolidation in the Sprott Physical Gold Trust (PHYS). Meanwhile, the white metal is testing key support as the Sprott Silver Physical Trust (PSLV) is pulling into its 200-day line which offers a lower-risk entry possibility using the line as a tight selling guide.
