EB Watch List Update Report

Dear Members: Market Update: I can tell you that the market action of late is not healthy. When you have a handful of stocks performing at extreme overbought levels while many stocks are left behind it becomes unsustainable. And when the market starts to do the opposite of what it did the prior day it just becomes too confusing. And when you have a report like the Philadelphia Fed that missed expectations by a mile it gets traders wondering if the market - particularly the NASDAQ - has gotten ahead of itself, which it has. In fact in just over two months the NASDAQ has risen almost 15% with very little resistance. Once again the bulls are going to try to hold the line on the S&P at its 20 day moving average just above 2750. In fact, they are counting on it. But the VIX immediately shot back up testing all technical levels, ready to move higher if traders finally relent. In what I think could become the next catalyst for additional selling the Supreme Court has ruled that states can require Internet tax collection. Why does this matter? Because stocks like Amazon, Facebook, Google and Netflix (FANG) have frankly gotten out of hand and need a time out. And in fact were it not for the FANG stocks I doubt we would have seen the rise in the NASDAQ of late. Of course the bulls aren't going to lie down easily when they've had a good thing going. But to me it's still too risky to get aggressive on the long side at this moment but risky to short as well. In other words, best to just lay low and try to get stocks at much better levels. Companies reporting earnings Today (June 21) Before Market Opens: BKS, DRI and KR After Market Closes: RHT Companies reporting earnings tomorrow (June 22) Before Market Opens: BB and KMX After Market Closes: None 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 - PLEASE NOTE - WE ARE REMOVING THIS STOCK FROM THE WATCH LIST. Stock has been on our list with an entry on any pullback to $8. It's trading in such a narrow range that maybe we will revisit down the road. Deletions from Watch List PLAB At your service, John Hopkins EarningsBeats