EB Watch List Update Report

Dear Members: Market Update: If you are wondering if the market is overbought here the answer is an unequivocal YES! In fact all of the major indexes are technically stretched after the non-stop move higher the past few sessions resulting in new all time highs. What does this mean? It means traders are all in here - overbought or not. At the same time the VIX is showing no fear; confidence is high. What might this mean in the near term? Hard to tell. It should mean a pullback is imminent. But try telling that to the bulls. Still, a combination of stochastics in the upper 90's and RSI's over 70 on all of the major indexes does signal some relief is necessary. The question becomes, how much selling might there be and will buyers be waiting in the wings to jump back in on any pullback? The S&P got as high as 2729 so that is now resistance. The initial level of support on any selling should be right around 2700 then 2675, the 20 day moving average. That's the range to work with right now and if the bulls can clear that all time high then 2750 would become the next key level of resistance. All of this to say it's time to ease up a bit here with the market so stretched. Companies Reporting earnings today (January 4) Before Market Opens MON After Market Closes: None Companies reporting earnings tomorrow (January 5) Before Market Opens: STZ After Market Closes: None ADDITIONS TO WATCH LIST Will keep you posted on any new trade alerts. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None Mid Cap Watch List NAV - Stock is up slightly and a close above $44.62 would be very bullish. SAIC - Stock is higher by 1% today and a close above $78.23 would be bullish. Small Cap Watch List UNFI - This stock moved below our INTRA DAY stop of $49 this morning so is being removed from the Watch List. DELETIONS FROM THE WATCH LIST UNFI is coming off the Watch List as it moved below our stop loss At your service, John Hopkins EarningsBeats