EB Watch List Update Report

Dear Members: Market Update: If you look at a chart of the S&P going back five years you will see the closest formation to what we're seeing now occurred in the fourth quarter of 2014 when the market had pulled back and then bounced over 14% as it formed a V type bottom. It then made no progress until July, 2016. It then pulled back one final time to test the same levels from back in 2014 then took off to the races. Now we're looking at a V bottom where the S&P is at the same level as October of last year, or roughly five months abo. Now traders are trying to figure out if the market is ready to make its next move higher or are we possibly looking at a long period of time before stocks can advance much higher? The bulls can make a strong argument that we're just a few points away from clearing key technical resistance and its just a matter of time before the market makes a move higher. The bears will argue that numerous failed efforts will end up putting a top in the market. Both arguments have merit and it's why there's such a struggle going on at the moment. Something else worth pointing out. Just when it looked like the $US Dollar would break out last week it abruptly shifted gears as it moved back below both its 20 day moving averages helping give a boost to stocks. At the same time Apple woke up, rising over 9% in the past week with Microsoft, the largest Market Cap company in the world, rising 7% over the same period of time and for sure helping to keep the bulls' hopes alive. Finally, the VIX has dipped back into the 12's coming close to the October 4, 2018 low, just as its 50 day moving average is converging on the 200 day from above. The last time the 50 day moved below the 200 day on the VIX was July of last year and within one month the VIX was back in the 10's and a month later the S&P hit an all time high. SO...you can see why there's such a battle going on with a lot at stake. The bulls really need to close the S&P above this week's high of 2821 as that would pave the way for a test of the October 10 high of 2874. Unless that happens the market remains vulnerable to a pullback. Companies reporting earnings today (March 15) Before Market Opens: None After Market Closes None Companies reporting earnings Monday (March 18) Before Market Opens: , None After Market Closes: None ADDITIONS TO WATCH LIST We 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 JBHT - Stock is down slightly as it trades between its 20 and 50 day moving averages. As a reminder we changed our stop to any INTRADAY close below $104. Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats