EB Watch List Update Report

Dear Members: Market Update: We've got a bifurcated market today with blue chip and non-tech stocks plowing ahead while the NASDAQ continues to lag. Traders are more confident today than last week when the VIX soared as major indexes fell hard. Today the VIX is down over 4% as it tries to move back below key technical levels. Both the Dow and S&P are overbought now but for the moment doesn't seem to faze traders. The S&P got as high as 2665 before pulling back some. So we've not got a new bar on the S&P. We saw it move as low as 2605 on Friday's selling so this is now the new range. The move lower in tech stocks shows rotation into those sectors that could benefit mostly from higher interest rates and lower taxes. So at least for the moment the NASDAQ is taking a back seat to both the Dow and S&P. So far the NASDAQ remains above its 20 day moving average but a close below that level, currently at 6804, could result in additional selling. We're at a point where we need to be very selective; we saw how quickly the market can turn on Friday. Plus any pullback would help increase the reward to risk on those stocks that are the strongest but are also currently stretched. Said another way, no need to chase here and patience is required. Companies Reporting earnings today (December 4) Before Market Opens None After Market Closes: None Companies reporting earnings tomorrow (December 5) Before Market Opens: AZO, BMO, LE and TOLL After Market Closes: PLAY and VEEV ADDITIONS TO WATCH LIST We added IMAX 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 2%. A close above $39.65 would be bullish. Mid Cap Watch List None Small Cap Watch List CVA - Stock is fairly flat after putting in a near term high earlier in the session. A close above $15.55 would be very bullish. DO - Stock is up slightly as it get closer to our target of $16.95. If it hits that level it will come off the Watch List. IDTI - Stock pulled right back to its 50 day moving average and so far has held. At a minimum would like to see it close back above Friday's close of $30.75. IMAX - Stock was added to the Watch List this morning at an initial entry price of $24.02 with a second entry on any pullback to $23.45 with a price target of $26.50 and a stop loss of any close below the 50 day moving average. DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats