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 general market remains in a choppy as the NASDAQ Composite continues to trend lower. A rally this past week finally ran into resistance along the 50-day moving average as the index reversed on light volume despite options expiration on Friday. This remains in a correction.
The S&P 500 Index remains extremely choppy and volatile as it runs into turbulence following a relatively smooth trend to new highs two weeks ago. The index stalled and reversed on higher NYSE volume on Friday after filling the gap of May 10th. So far, the S&P has been able to hold support at the 50-day line and may be setting up for a third test of the line as we continue to see weak action underneath the surface as individual stocks continue to struggle.
The Market Direction Model (MDM) remains on a CASH signal.
Removed from the List this Week: Grayscale Bitcoin Trust (GBTC)
As we suspected might be the case, the Grayscale Bitcoin Trust (GBTC) has now been removed from the Focus List after Bitcoin blew apart this past week. However, as noted in last weekend's Focus List Review, it had already been setting up as a late-stage failed-base (LSFB) short-sale set-up along the 50-day moving average two weeks ago before splitting wide open this past week. The technical damage is now so severe, certainly more indicative of a popping bubble than an orderly correction, that at best it will take some time for GBTC and Bitcoin to set up again if they are to ever resume any semblance of an uptrend.
[From Dr. K:
Technicals show the facts up to date. One must act according to the price volume data as it unfolds in real time. On that basis, Gil and I tend to agree though our timeframes as traders can vary.
Over a longer timeframe, blockchain metrics have had predictive value in the general direction of bitcoin in terms of whether the bull market cycle is over or not. For longer term hodlers, this is useful as it guided them to stay in bitcoin from early 2015-Jan 2018. It also helped staying put if one didn’t sell in time during short sharp deep corrections such as in mid-2013, mid-2017 and Mar-2020. Such corrections made great buying opportunities once a floor was found. I discuss more in detail HERE.
In crypto, the volatility is well beyond that in stocks so blockchain buy/sell volumes show more than 90% of investors buy high and sell low at critical points due to FOMO and FUD. There are limitless reasons mainstream media has conjured up since 2013 to FUD people out of their positions at critical lows in bitcoin. www.99bitcoins.com has shown bitcoin has “died” hundreds of times over the years based on accounts by mainstream press. Indeed the mass majority of investors in crypto tend to have nothing to show in the way of profits over every complete bull-bear cryptocycle.
Understanding cycles and blockchain metrics can help one steer clear of this and instead help one keep at least some of their profits which can then be used to build further wealth over each bull market cycle. The biggest money since 2013 has been made by those who have managed to position themselves on the right side of the market on not a daily but a weekly timeframe. This means more potential downside in the short term but far more upside in the long term.
That said, most all traders which include myself use daily and intraday charts. This requires far more work but profits can be even greater when one identifies then position builds the leading coins which tend to outperform bitcoin in bull markets.]
As crypto-currencies implode, gold and silver continue to trend higher. The Sprott Physical Gold Trust (PHYS) closed the week as its highest levels since February as it moves further above its 200-day moving average. Silver spent the week consolidatin as it pulled into its 20-dema on Friday before closing one penny above its 10-day moving average on Friday. We view the PSLV as best bought along the 20-dema although technically it is in a buyable position using the 20-day line as a tight selling guide.
