EB Watch List Update Report

Dear Members: Market Update: A few things standing out today as the bulls take the market higher. First, the rally the past five days has actually moved the NASDAQ close to overbought territory with stochastics near 98 and a RSI near 63. This doesn't mean the NASDAQ can't move higher. It just means it could run out of steam soon, maybe as it gets closer to 7400 which is not far away. At the same time the S&P is now at key resistance, the April 17 high of 2717. I will say that traders are much less nervous today than they have been in quite a while as the VIX has moved back below its 200 day moving average for the first time since early January and hasn't been this low since February 1. So the bulls do have some momentum here but worth noting it's happening just as the S&P nears important resistance and with the NASDAQ nearing overbought territory. I also want to point out that two stocks that were recently very avoided - Apple and Facebook - are back to being in favor and in fact are now in overbought territory which helps account for the recent rise in the overall tech sector. It's always interesting to see how quickly sentiment can change. Just last week the market was fretting as the S&P dipped below its 200 day moving average. Now "all is well." Except it seems a bit premature to declare all is well. I do think it will be worth watching what happens as we move into the close; do the nice gains hold or do traders get cold feet? If the gains do hold it might make the bears nervous. But if profit taking kicks in that might indicate that the market needs a pause here. Let's keep an eye on that 2717 level on the S&P. If that clears and holds then 2725 is next; not that much higher. But for the moment I would be careful taking on new long positions here. The market could move higher here but I think it could stall as well. Companies reporting earnings Today (May 10) Before Market Opens: CHH, DUK, OMI, GOLD, REV, TU and TRCO After Market Closes: AVID, DBX, ELON, EXE, KLIC, NWSA, NVDA, RDFN, SYMC, TIVO and YELP Companies reporting earnings tomorrow (May 11) Before Market Opens: TRI After Market Closes: None ADDITIONS TO WATCH LIST Please note that the Candidate Tracker has now been updated. There are 158 stocks on the Beats list and 28 on the Misses list. For those who have been getting the Chart List we will make sure you get an updated list later today or tomorrow morning. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: CB - CB hit our short entry price of $187 this morning but then moved above the cover price of $188.34 so is being removed from the Watch List at a loss of .7% TSM - Stock hit our short entry price of $39.60 this morning so is now an active alert. It currently is back above its 20 day moving average of $39.66. Would like to see it close back below that level. As a reminder the cover price is any INTRA DAY move above $40.10 and if it moves above that level it will be removed from the Watch List. LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List Deletions from Watch List None At your service, John Hopkins EarningsBeats