EB Watch List Update Report

Dear Members: Market Update: The bulls continue to control the action with all of the major indexes hitting record highs. Those who continue to wait for a substantial pullback are disappointed day after day with such a strong bid underneath the market. Make no mistake about it; this market is very overbought. But even though the VIX is higher by over 3% today it remains below all key technical levels showing that fear remains on the low end. Each time the market makes a new high traders are wondering what level might come next. With the S&P now near 2756 perhaps the bulls are eyeing 2800, a nice round number. But each day the market advances it does get harder to jump "all in"; no one wants to be the high bid on a stock that is ripe for correction. But traders aren't thinking like that these days; they are looking for those stocks they believe can hold up even if the market does get a much needed pullback. But it makes a lot of sense to have some cash available in case we do see some selling. It might seem like you are missing out now but sooner or later you will see some even better opportunities. Companies Reporting earnings today (January 9) Before Market Opens AYI and SCHN After Market Closes: None Companies reporting earnings tomorrow (January 10) Before Market Opens: LEN After Market Closes: KBH ADDITIONS TO WATCH LIST We added SORL to the Watch List this morning with additional information below. 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 slightly as it remains in consolidation mode. PLEASE NOTE: When we initially sent out the alert on NAV we had a second entry level at $42.75. We are removing that level. At this point we would like to see it close back above $44.47 which would be bullish. SAIC - Stock is higher by about 1% and a close above $78.23 would be bullish. Small Cap Watch List AVAV - Stock got off to a very strong start today as it moved above its 20 day moving average and has since pulled back substantially. It's forming a black (potentially reversing) candle that we would prefer to see change as the day progresses. It really needs to close back above its 20 day, currently at $54.17, which would be a bullish development. SORL - We added this stock to the Watch List this morning at an entry price of $7.24 with a price target of $8.25 and a stop of any INTRA DAY move below $6.98. DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats