EB Watch List Update Report

Dear Members: Market Update The bulls were looking for any kind of relief coming into today's session and with all of the major indexes hitting oversold levels we're seeing a nice bounce today as traders take advantage of cheaper prices. Even tech stocks are showing some life today after some highly visible names got hammered yesterday though both the NASDAQ and Dow remain below all key technical levels with only the S&P trying to climb back above its 200 day. The VIX is lower by over 8% but something has caught my attention. It's the 20 day moving average converging on the 200 day on the VIX. The last time it crossed above was October of last year, just before the market started its sharp descent into year end. As usual this doesn't mean it will happen again. However, should we see the cross, stocks could remain in jeopardy. I'm going to keep a close eye on what develops as the day progresses. Will we see gains build into the close or will traders take profits? I think what happens will be revealing. In the meantime the S&P has climbed back above its 200 day, currently at 2774 so a close above that level would be positive. To the downside the S&P got as low as 2728 yesterday so that is now support. Companies reporting earnings today (June 4) Before Market Opens: CBRL, DCI, NAV and TIF After Market Closes CRM, GWRE and PVTL Companies reporting earnings tomorrow (June 5) Before Market Opens: AEO, BF.A and CPB After Market Closes: ABM, CLDR, ESTC, FIVE, GEF, MDB, SMAR AND SFIX 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 OMC - Stock is up slightly as it continues to struggle to clear its 50 day moving average,currently at $77.86. It did try to clear its 50 day earlier in the session only to stall. Still needs to close above the 50 day at a minimum to get back on track. MSFT - Stock closed below our stop of $122.90 yesterday so is being removed from the Watch List. Small Cap Watch List MTOR - Stock is higher by 3.4% as it tries to clear its 20 day moving average, currently at $21.10. A close above that level would be bullish. However, should it stall, we may have to re-evaluate. Deletions from Watch List MSFT At your service, John Hopkins EarningsBeats