EB Watch List Update Report

Dear Members: Market Update: It's something to watch when the market moves from no one wants to touch a stock long to the major indexes closing in on overbought territory. This is particularly true of the NASDAQ which has risen almost 9% since its April 4 low. In fact, earlier in the session the NASDAQ got to within a few points of the next key level of resistance at 7421 which might account for the profit taking since the high of the day. There certainly something to be said about momentum which the bulls grabbed the last time they held the line on the 200 day moving average on the S&P. Since then its been straight up; now the question is, can it last? It's possible but given the non-stop buying the past week the odds of the market continuing its march higher with stochastics on all of the major indexes over 90 are reduced. But, as we've seen with our first two short candidates in a few years, it remains difficult to bet against the market when the bulls grab the momentum. Having said that, I still think the market is vulnerable here and I would avoid taking on new long positions without some type of pullback. The market could continue higher but it will only get more overbought; some selling might garner even more interest on the long side. Currently the range on the S&P is 2675 to the downside and 2741 to the upside. A move to that resistance level might be an even better level to consider shorting while a move back to support might present some long opportunities. But for now there seems to be no meaningful advantage of getting aggressively either on the long or short side. Companies reporting earnings Today (May 11) Before Market Opens: TRI After Market Closes: None Companies reporting earnings Monday (May 14) Before Market Opens: None After Market Closes: A and TDW 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. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: TSM - Stock moved above its cover price of $40.10 this morning so is being removed from the Watch List. LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List Deletions from Watch List TSM At your service, John Hopkins EarningsBeats