EB Watch List Update Report

Dear Members: Market Update: On October 10 of last year the S&P was at 2874. This morning the S&P almost touched 2873, six months to regain losses from that October high. Back in October the ten year treasury yield was close to 3.25%. This morning 2.48%, almost 3/4 of a point lower. The VIX closed at 22.96 on 10-10-18 and this morning it stood at 13.41. And the $US dollar was at $95.18 compared to yesterday's close of $96.80. So, does any of this really matter? Not necessarily. There certainly was a lot more fear back then and it marked the top in the market leading to the late December crash. And traders certainly seem to like the fact that interest rates have fallen 3/4 of a point, even if it could be indicating some slowdown ahead. Maybe most important is the S&P has gone full circle with 2874 being a significant hurdle to clear if the bulls hope to revisit the all time high of 2940 with 2900 likely to be a psychological level to clear. But 2874 is 528 points off the December 26 low and 66 points away from the all time high. Said another way, there's an 8 to 1 downside risk here. On the surface this would seem like a perfect place to consider shorting with a tight stop should that 2874 level go. But the bid underneath the surface has been so strong that it has frustrated the shorts to no end. We saw again this morning that a negative durable goods number was mostly ignored. And we'll get the first look at March employment data tomorrow when ADP releases its report followed by Friday's non-farm payroll report. Then at the end of next week earnings season will kick in. With all of this going on it boils down to this; can 2874 be cleared or will traders realize that the upside potential is limited compared to what might happen should a decent pullback occur? Companies reporting earnings today (April 2) Before Market Opens: WBA After Market Closes PLAY Companies reporting earnings tomorrow (April 3) Before Market Opens: , AYI After Market Closes: None ADDITIONS TO WATCH LIST 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 LEG - For the third session in a row the stock attempted and failed to clear its 20 day moving average. It's a great sign. Accordingly, we are changing our stop to any CLOSE below $42.10. If the stock closes below that level it will be removed from the Watch List. In the meantime we still need to see it close above the 20 day, currently at $42.63 for the stock to get back on track. Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats