EB Watch List Update Report

Dear Members: It's hard to not like the market here. At the same time it's been non-stop higher lately and the market is flat out overbought. We're seeing that today with traders taking some well deserved profits with all of the major indexes lower. The recent excitement can be pegged to the fact that both the NASDAQ and S&P moved to all time highs with traders not wanting to miss out on the positive action. In fact, once the NASDAQ cleared its prior high it proceeded to tack on 180 points in just a few days. We're also all aware that markets can remain overbought for sustained periods of time. In fact, the S&P remained technically overbought for the entire month of January before the wheels fell off, resulting in an almost 12% pullback in two weeks time. Since there's really no telling how long the market might remain overbought here the path of least pain is to avoid being overly exposed on the long side in case the market does actually top. And if it keeps moving higher in spite of being overbought then any ensuing pullback might be more severe. I pointed out yesterday that the VIX has been showing signs of bottoming lately - i.e., some acknowledgement by traders that things have gotten a bit frothy. It's higher by 4% today which isn't all that much but at these levels it could quickly shoot up which could in turn spook the market. Thus it wouldn't surprise me if we see some additional selling in the near future with the first key level of support on the S&P near 2860 with yesterday's high of 2916 now resistance. Companies reporting earnings today (August 30) Before Market Opens: SIG and TD After Market Closes: None Companies reporting earnings tomorrow (August 31) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH LIST Will keep you posted on any new trade alerts. At this point would like to see some type of pullback rather than get aggressive with the market now technically overbought. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List CSTM - Stock is lower by over 2% as it struggles to remain above all key technical levels. PLEASE NOTE: We are changing the stop on CSTM to any CLOSE below $11.50. If the stock closes below $11.50 it will be removed from the Watch List. WGO - Stock is lower by just over 1% as it failed to hold recent gains. PLEASE NOTE: We are changing our stop to any INTRA DAY move below $37.25 which is just below our original entry price. If the stock moves below that level it will be removed from the Watch List. Deletions from Watch List None At your service, John Hopkins EarningsBeats