EB Watch List Update Report

Dear Members: Market Update: The market had gotten so oversold that once the uncertainty surrounding the mid-term elections was over traders joined in unison in buying stocks. Once the S&P cleared its 20 and 200 day moving averages the next key level of resistance became 2816. The S&P hit 2815 yesterday, close enough. That represents an 8% gain from the October 29 low with the S&P remaining over 4% off its all time high. As usual, the selling had gotten overdone with traders realizing that too many stocks had gotten very oversold. Now that is no longer the case. It doesn't mean that the market can't go higher. It means that the bargains that existed last week have been gobbled up. And it's coming right as the S&P hit resistance; a case could be made that some profit taking is about to kick in. The VIX is fairly flat today as it tests support near the 200 day moving average of 16.14. Though this is much lower than the high of 28.76 hit last week its still well above the most recent low of 11.34 put in on October 3. We will hear from the Fed later today when they make their interest rate announcement with the bulls hoping for softer language about the future. But once the Fed announcement is out of the way traders will be looking for reasons to remain long, with the bulk of key earnings reports and the election behind, as they look for the next major catalyst that could take stocks higher or lower. So really we're back to having to be very selective as the market could go either way here with the reward to risk at these level likely favoring the bears in the near term. Companies reporting earnings today (November 8) Before Market Opens: AZN, CAH, LNG, CHH, CCO, CROX, DHI, DISCA, GCI, JCI and FWONA After Market Closes ATVI, AMC, DIS, DBX, HTZ, SWKS, UIS and YELP Companies reporting earnings tomorrow (November 9) Before Market Opens: SSP, REV, STWD and TCRO After Market Closes: ATHN ADDITIONS TO WATCH Will keep you posted on any new additions to the Watch List BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List FCN - Stock is higher by 1% as it tests its 20 day moving average, currently at $68.85. A close above that level would be bullish. Deletions from Watch List None At your service, John Hopkins EarningsBeats