EB Watch List Update Report

Dear Members: MARKET UPDATE A few things worth noting this morning. First, both the NASDAQ and Dow hit fresh all time highs. Next, all of the major indexes have given up some of their early gains which immediately gets the bears hoping a top has been put in. Next, for the third day in a row the VIX has challenged or been above its 20 day moving average. This is the first time this has happened in about a month which tells me that traders are possibly back to having one finger on the sell button. For sure, all of the major indexes came into the day technically overbought. But recently that hasn't seemed to spook traders and in fact the bulls have done nothing but cheer each day as the market continues its march higher. This gets me to the concept of Reward to Risk, something we covered in our Webinar yesterday (the recording will be posted on the site later today) and when it makes sense to get aggressive and when it might make more sense to be patient. For example, even though the market continues to climb it hasn't generally been on major surges since it gets harder and harder for the market to "blast off" the more overbought it gets. I think that's the case now. Still very difficult to short but also trickier to make big scores. For sure it's a market where individual stock selection becomes even more important; must be pickier. We've been very fortunate to have a nice string of winners, including NVDA that exceeded our price target today. And now I'm fine with having just a few open positions; they're holding up nicely as well. But adding much here in an overbought market environment when EVERYONE seems convinced the market can only go higher doesn't make sense to me. Let's remember that earnings season will start later in the week when some major banks report. Expectations are very high. This doesn't leave much margin for error. So I'm going to continue to be patient here even if we miss a bit more upside and if nothing else much more selective in case we see a sudden move to the downside which currently seems impossible, but it's not. Companies reporting earnings today (October 10) Before Market Opens None After Market Closes: None Companies reporting earnings tomorrow (October 11) Before Market Opens: FAST After Market Closes: NONE ADDITIONS TO WATCH LIST Please note that we have updated the Candidate Tracker which is now available to all members. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock exceeded our price target so a profit alert at $193.10 was issued this morning and the stock has been removed from the Watch List. GREAT TRADE! CRM - Stock is down slightly and a close back above $96.57 would be bullish. Mid Cap Watch List GWRE - Stock is higher by over 1.6% after being in consolidation mode for almost a month. A close back above $79.02 would be bullish and put us another step closer to our target of $81.40. Small Cap Watch List GIII - Stock successfully held its 50 day moving average yesterday and is now up by more than 1%. It's still got some work to do to get back on track and a close back above its 20 day, currently at $28.55, would be very bullish. DELETIONS FROM THE WATCH LIST NVDA is being removed from the Watch List as it exceeded our price target this morning. At your service, John Hopkins EarningsBeats