EB Watch List Update Report

Dear Members: MARKET UPDATE The market continues to power higher this morning with all of the major indexes hitting record highs. This record high has resulted in stochastics reaching 99 on both the Dow and S&P and with both having a RSI in excess of 70. Translation? Very overbought. Do traders care? It doesn't seem so. Though the NASDAQ continues to lag - it's not yet technically overbought - it's still in record territory. And the VIX remains in the 9's; traders remain extremely confident. One begins to wonder if the market will ever pullback. Rest assured, it will! In fact, when you've got two of the major indexes printing stochastics at 99 with RSI's in excess of 70, it's just a question of when. The market can remain overbought, for sure. But it gets harder to justify taking on too many new positions when the market is so stretched. So we've got a situation where the market environment is very bullish but the risk is now to the downside. In looking at the S&P it got as high as 2532 so that is now the new level of resistance to the upside. To the downside it would not be unreasonable to see a pullback to the 2475-2500 level at a minimum. In fact, that would be healthy. That's not much but at least it might help relieve the overbought conditions. KEY EARNINGS REPORTS Companies reporting earnings today (October 3) Before Market Opens LEN and PAYX After Market Closes: None Companies reporting earnings tomorrow (October 4) Before Market Opens: AYI, MON and PEP After Market Closes: None ADDITIONS TO WATCH LIST Will keep you posted if are any additions to the Watch List BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock is up slightly and a close above $180.76 would be bullish. CRM - Stock is higher as it moves back above all key technical levels and a close back above $94.94 would be very bullish. Mid Cap Watch List GWRE - Stock is flat as it continues to consolidate and a close back above $78.64 would be bullish. SFR - Stock is down slightly and a close back above $36.87, yesterday's close, would be very bullish. CTLT - Stock is down slightly after getting closer to our price target of $41.65. PLEASE NOTE. We are changing the stop loss to any CLOSE below $40.76 with the price target remaining at $41.65. Small Cap Watch List GIII - Stock is fairly flat and a close back above $30 would be bullish. DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats