EB Watch List Update Report

Dear Members: Market Update: There have been times when the market is falling, when one might say there is a buyer's strike. Now what we have is quite the opposite where traders continue to go all in in spite of extremely overbought conditions. It got me thinking about webinars we did years ago when pulling up charts and showing beginning students to avoid getting involved in stocks on the long side when there was a combination of stochastics over 90 and a RSI over 70 as it indicated a high likelihood of a pullback where the odds would be against them. Now we're well above those levels on all of the major indexes with traders not having a care in the world. It's true that we also taught that the market could remain overbought for an extended period of time which could be the case right now. But there's still no denying that at these lofty levels we're one "out of the blue" event from seeing a decent correction. It's why we've gone light on alerts of late; the market could go higher but each move higher increases the odds of at least some selling, and just when everyone least expects it. If we're patient we'll get much better opportunities instead of being over exposed if we do in fact get a sudden and unexpected move lower. And we should all remember that cash IS a position that comes in handy when the odds are more in your favor. Companies Reporting earnings today (January 5) Before Market Opens STZ After Market Closes: None Companies reporting earnings Monday (January 8) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH LIST Will keep you posted on any new trade alerts. Let's be patient here and wait for much better opportunities. 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 down by over 1% after being higher earlier in the session. Would like to see it close back above yesterday's close of $44.47 to get back on track. SAIC - Stock is fairly flat but off the high of the day and a close above $78.23 would be bullish. Small Cap Watch List DELETIONS FROM THE WATCH LIST At your service, John Hopkins EarningsBeats Send Message Cancel Message Use your 'back' button to go back and edit message. © 2000-2018 MemberGate Ltd. All Rights Reserved.