EB Watch List Update Report

Dear Members: The market found its legs yesterday after a few sessions of relentless selling. Now today traders are taking advantage of yesterday's reversal by locking in some profits with all of the major indexes lower. Something worth pointing out is the 50 day moving average moved below the 200 day for the first time since August, 2015. The last time the S&P saw this "death cross" it took 9 months for it to recover. Of course this doesn't mean we'll see a repeat but it's a sign that the market could continue to struggle as traders assess the reward to risk of being long stocks. One thing to keep in mind in the near term is this; even though stocks that get oversold might bounce it's getting harder for them to hold gains. In other words, with a few exceptions it's harder for stocks to hold gains because traders are taking advantage of quick profits on any moves higher; the opposite of buying on the dips. This is particularly true when the VIX is elevated like it is now with traders having 2-3 fingers on the sell button on any sign that a rally is fizzling. Thus it is one of those times when being in cash is a good thing because stocks could get cheaper. We've got some new near term markers on the S&P with yesterday's low of 2621 now support. To the upside today's high of 2708 is now resistance. And, unless all of the major indexes can minimally cross and stay above key moving averages the bears must be respected. Companies reporting earnings today (December 7) Before Market Opens: MTN After Market Closes None Companies reporting earnings Monday (December 10) Before Market Opens: None After Market Closes: SFIX ADDITIONS TO WATCH We will keep you posted on any new alerts. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats