EB Watch List Update Report

Dear Members: MARKET UPDATE The NASDAQ is closing in on the Dow and S&P in being technically overbought as all of the major indexes hit record highs. The VIX is down over 3% as it starts getting closer to the 8's. For some perspective the all time low on the VIX was 8.84 reached this past July. The all time high was close to 90 back in 2008. I'm pointing this out to show how complacent the market is at this point in time. From the bull's perspective it doesn't get much better than this; it's tough to power higher if traders are worried and right now they're not. I have noticed something very interesting. First, a good deal of today's gains can be attributed to just a few stocks; APPL, AMZN and NFLX. If you take a look at the stocks remaining on our Watch List, those that had very strong earnings, they've stalled, even as the market has continued moving higher. I think you will find this to be common right now. In other words, while the market as a whole is powering higher, many stocks have not participated. This is why it's tough right now to chase stocks; the market is flat out technically stretched. In fact, in my opinion, it makes no sense to add stocks at this level, especially when the entire market is convinced that stocks can only go in one direction; up! We could see the market continue moving higher here, the grind up I've talked about lately. That's fine; let it get even more overbought. The bulls just better hope everything remains perfect here because that's the market environment at the moment. KEY EARNINGS REPORTS Companies reporting earnings today (October 5) Before Market Opens STZ After Market Closes: COST and HELE Companies reporting earnings tomorrow (October 6) Before Market Opens: NONE After Market Closes: NONE ADDITIONS TO WATCH LIST Going to continue 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 fairly flat as it continues to consolidate and a close above $180.76 would be bullish. CRM - Stock is fairly down slightly and a close back above yesterday's close of $95.52 would be bullish. Mid Cap Watch List GWRE - Stock is down slightly as it continues to consolidate right at the 20 day moving average and a close back above $78.64 would be bullish. SFR - Stock is down slightly and a close back above $36.87 would be very bullish. Small Cap Watch List GIII - Stock is up flat 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