EB Watch List Update Report

Dear Members: MARKET UPDATE The refuse to fall market continues to refuse to fall today with all of the major indexes regaining earlier losses. From a text book perspective the market is in one of those periods where overbought remains overbought. How else to explain both the Dow and S&P with stochastics as high as they can go? Put another way, the polar opposite of where they can go when the market is at extreme oversold levels. How is the worry meter today? The VIX is up by 2.5% but still within reach of its all time low; not a worry in the world. Government bond yields have risen sharply today with the ten year yield now back above 2.40%. And the $USD has made a decent move off of the recent bottom. So once again stocks seem to take the rise in bond yields and the $USD in stride. To me this is one of those times where we need to get more defensive; things are simply to complacent here. The market could continue to march higher but if it does I think it will be more of a grind than straight up. On the other hand while it doesn't seem possible at the moment we could see a sharp decline out of nowhere. Not predicting it but it's a perfect set-up if something unexpected comes out of the blue. To me, simply not worth the risk and makes more sense to go slow here, lock in profits when they come along and wait for better opportunities. KEY EARNINGS REPORTS Companies reporting earnings today (October 4) Before Market Opens AYI, MON and PEP After Market Closes: None Companies reporting earnings tomorrow (October 5) Before Market Opens: STZ After Market Closes: COST and HELE ADDITIONS TO WATCH LIST Going to hold off on any new additions at this time; just don't like the reward to risk in the near term. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock is higher by over 1% and a close above $180.76 would be bullish. CRM - Stock is down slightly and a close back above yesterday's close of $95.36 would be 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 up by more than 1% and a close back above $36.87 would be very bullish. Small Cap Watch List GIII - Stock is up slightly as it continues to consolidate and a close back above $30 would be bullish. DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats