EB Watch List Update Report

Dear Members: Market Update: The market has taken a turn lower after new reports surrounding the investigation of Russian meddling in the US election. The VIX has spiked over 25% with all of the major indexes lower. We really could use some more selling. Entering the day, the Dow had stochastics over 90 and a RSI of 80 and the S&P is extremely stretched as well. The NASDAQ continues to lag as traders have turned their focus to blue chips and non-tech related stocks. The big move in the VIX favors the bears. In other words, more nervousness at the moment. Combined with overbought conditions it really is a combo for selling. You can see how quickly the market can turn when it is so stretched. Now the question becomes, will traders see this as an opportunity to buy on the dip or could the selling get deeper? Traders have mostly ignored bad news for quite a while. Is that about to change? At the moment, the Dow and S&P are above all key technical levels but the Dow has fallen below its 20 day. The next key level of support on the S&P is near 2600 so that is a level to watch. Time to proceed with caution until we see what happens as the day progresses and as we move into the weekend. Companies Reporting earnings today (December 1) Before Market Opens BIG After Market Closes: None Companies reporting earnings Monday (December 4) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH LIST We added IDTI to the Watch List this morning with additional details below BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List DVN - Stock is higher by almost 1.5% but well off the high of the sessionon nice volume. A close above $38.96 would be bullish. Mid Cap Watch List NFX - Stock exceeded our price target so is being removed from the Watch List. GREAT TRADE! Small Cap Watch List CVA - Stock is down 1.5% as it moves back below both its 20 and 50 day moving averages. Would like to see it close back above the 50 day, currently at $15.19. DO - Stock is up 1.75% but well off the high of the session. Would like to see the stock close above yesterday's high of $16.04 which would be bullish. IDTI - Stock was added to the Watch List this morning at an entry price of $29.97 with a price target of $33 and a stop of any CLOSE below the 50 day moving average, currently at $29.52. If the stock closes below that level it will be removed from the Watch List. DELETIONS FROM THE WATCH LIST NFX 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