EB Watch List Update Report

Dear Members: Market Update: In some ways the bulls should be pleased that some steam has been let out of the overbought NASDAQ while traders are putting some money into non-tech stocks with blue chips showing signs of life. For quite a long time now the market has been bifurcated so some rotation here is not a bad thing. Even though the NASDAQ has seen some selling the past few days it looks like its trying to hold the 7600 level. And let's keep things in perspective here. The NASDAQ has risen 13% from the early April low to the recent high near 7700. That's a huge rise in a short period of time. But traders have been very attracted to stocks lately which has been helped some by a falling dollar, contained interest rates and strong earnings. The VIX is only up by 3% and still remains below all key technical levels. As long as it remains below those levels the bulls will argue there's not much to worry about. If stocks hold here it looks like the S&P could take a run at the 2800 level where it could run into major resistance. Also, though not yet technically overbought, both the Dow and S&P are heading into that territory, perhaps keeping traders from getting overly aggressive on the long side. For now we have to give the edge to the bulls. That could change if selling picks up but for now the stocks are in vogue. Companies reporting earnings Today (June 8) Before Market Opens: None After Market Closes: None Companies reporting earnings Monday (June 9) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH LIST We added KMX to the short Watch List yesterday with additional information below. Will keep you posted on any new alerts. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: KMX - Stock was added as a short yesterday with an entry price of $72.91 with a target to the downside of $67.50 and a cover price of any INTRA DAY move above $74. The stock is extremely overbought but if the market remains strong could hold so keep that in mind. A close below $72.60 would be bullish. LONGS: Large Cap Watch List None Mid Cap Watch List PE - Stock is lower by 1% as it tries to hold above its 200 day moving average, currently at $27.25. Would really like to see it close back above $28 which would be bullish. Small Cap Watch List CATM - Stock has been struggling the past few sessions and is down by another 2.4% and I really don't like the action. Therefore, PLEASE NOTE: We are changing the stop on this stock to any INTRA DAY move below $25.40. If the stock moves below that level it will be removed from the Watch List. This also means no second entry at the $25 level. PBH - Stock is fairly flat after getting off to a decent start. Would like to see it close above $36 which would be bullish. Deletions from Watch List None At your service, John Hopkins EarningsBeats