EB Watch List Update Report

Dear Members: MARKET UPDATE The market remains on auto pilot and the market remains very overbought. It's just the way it is at the moment with the bulls refusing to relent. All of the major indexes have hit new all time highs today just ahead of the earnings bombardament about to take place. The VIX is down by over 3% as traders take what's going on in stride. When you get to the lofty levels we are at now there's really no predicting what might come next. In the case of the Dow it got within 90 points of 23,000, another milestone level. It also becomes difficult to predict when the market might top; that's been an exercise in futility for some time now. But technical analysis has been around a long time with great reliability, especially when oscillators are showing extreme overbought or oversold conditions. Right now it's of the overbought variety. So really it's one day at a time here with a lot to be revealed over the next few weeks when the earnings floodgates open. Has the market already built in great earnings expectations? Is there still more room to run if expectations are beaten? Or - no one is contemplating this - what happens if we start seeing some major earnings disappointments? In looking at the action of late it would seem at a minimum traders are thinking results will be quite good. If that's true we might be closer to a top than we think. On the other hand if we do see any pattern showing disappointment, that could be the catalyst for a very overdue pullback. Thus it seems to make the most sense to consider on a path of being more conservative until we see what actually happens and how the market responds. Companies reporting earnings today (October 13) Before Market Opens BAC, PNC and WFC After Market Closes: None Companies reporting earnings Monday (October 16) Before Market Opens: None After Market Closes: IEX and NFLX ADDITIONS TO WATCH LIST We added GTN to the Watch List yesterday with a very tight stop of any INTRA DAY move below $15.25 and it moved below that level this morning so it will be removed from the Watch List. So far it has held at the next level of support at $14.80 and if it can climb back above its 20 day, currently at $15.33, that would be bullish. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List CRM - Stock is flat and a close back above $96.85 would be bullish. Mid Cap Watch List GWRE - Stock is down by 1.4% and a close above $80.06 would be bullish and put us another step closer to our target of $81.40. Small Cap Watch List None at this time DELETIONS FROM THE WATCH LIST GTN is being removed from the Watch List I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report At your service, John Hopkins EarningsBeats