EB Watch List Update Report

Dear Members: Market Update: The 2800 level on the S&P is proving to be challenging for the bulls as it pulled back yesterday just as it closed in on the 2815 level that proved tough to clear several times in late 2018. In addition to having the challenge to clear that important level the bulls have to deal with the fact that the market is overbought here; every major index falls into that category. We've seen repeatedly of late that traders seem to care little about the market being overbought and having no relief going on two months now. But this doesn't mean there can't be sudden, significant selling out of nowhere, especially when no one is expecting it. The bulls will argue that overbought can remain overbought for a while, which is true. But by any measure when you see stochastics in the 90's and RSI's at or near 70 it's a signal that there's more downside than upside risk built in. We saw the VIX hit a multi-month low yesterday as it got to 13.51. This morning it climbed to 15.28, a 13% rise off of yesterday's bottom. It's settled down some since today's high but it does go to show how quickly things can turn when the market is stretched. There's a lot of talk about trade talks, a Dovish Fed, low rates, but nothing that trades haven't been aware of for some time now. So a lot of optimism which might account for the 20% rise in the S&P since the December low. We know that key resistance on the S&P is near that 2815 level. Clearing that level could pave the way to higher prices. To the downside there should be support near the 200 day moving average, currently at 2748. It's still very tough to pull the trigger on short trades here but putting capital to work on the long side near such key resistance could prove to be challenging as well. Companies reporting earnings today (February 26) Before Market Opens: AZO, BMO, BCC, LNG, DISCA, HD, TREE, M, SERV, SJM, TRI and WYND After Market Closes MYL, PANW, PSA, TOL and VEEV Companies reporting earnings tomorrow (February 27) Before Market Opens: , AES, BBY, CPB, CHK, DF, LOW, RIO, TJX and UTHR After Market Closes: APA, CABO, HHC, HPQ, LB, MNST, PRGO, SRPT, SQ and USH ADDITIONS TO WATCH LIST Will let you know if there are any additional trade alerts. Should be some great opportunities when some very overbought stocks that reported strong earnings pull back to more reasonable levels. 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