EB Watch List Update Report

Dear Members: Market Update: Yesterday it looked like the market might be doomed. Today the NASDAQ has set a record high. At the same time the Dow is red and the S&P is going nowhere fast. I do have a few observations about the market. First, shorting at this exact moment in time seems to have become an exercise in futility, even on those stocks that missed earnings and seem most vulnerable. Next, the focus remains on some very large market cap tech stocks like Amazon, Facebook, Google and Netflix, to name a few. The banks have been absent lately even though they were supposed to have benefited nicely from the Fed's rate raising campaign. And I've noticed that it has been harder for many stocks to hold gains for more than a few days at a time before those gains are lost. Then there's the VIX which yesterday looked like it might be ready to breakout to the upside on the selling but is now back below all key technical levels, lots of worrying to a sigh of relief in 24 hours. All of this points to the continuation of a bifurcated market where tech stocks (and small cap stocks, also very overbought) rule while blue chips and those in the S&P are out of favor. At the same time the NASDAQ remains overbought; even though it lost 150 points the past few sessions only to gain them back with a few points to spare. So I can't get too excited about chasing stocks in the overbought NASDAQ that had lost a bunch of points quickly and nothing in the Dow or S&P excites me. In some ways this reminds me of last summer where we laid low until conditions favored us. Then when the Fall came we became very active on the long side with excellent results. Bottom line is I don't see any sense chasing here; the reward to risk is simply not there. Maybe if we get a bout of selling that sticks or if the Dow and S&P perk up we'll get some better opportunities. But for now I don't have any problem having more cash on the sidelines with an occasional trade alert only if the reward to risk is high enough to consider. Companies reporting earnings Today (June 20) Before Market Opens: WGO After Market Closes: MU and SCS Companies reporting earnings tomorrow (June 21) Before Market Opens: BKS, DRI and KR After Market Closes: RHT ADDITIONS TO WATCH LIST Will keep you posted on any new trade alerts and will continue to be very selective BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List PLAB - Stock has still not hit our entry price of $8 so is not yet active on the Watch List. Deletions from Watch List None At your service, John Hopkins EarningsBeats