EB Watch List Update Report

Dear Members, MARKET NOTE: The market continues to show weakness for a third day in a row, not being helped by comments from Fed chairwoman Janet Yellen who stated equities may be overpriced. At the same time government bond yields and oil continue to spike with the yield on the ten year treasury note at 2.25% and above its 200 day moving average for the first time since April of 2014. This move higher in yields has some thinking the Fed might be raising rates sooner rather than later even though recent economic reports show some serious weakness. The ADP jobs report came up shy today as well but so far that hasn't had the usual effect you might think it would on yields. So there's some confusion out there that is leading to lower equity prices and requires some additional caution here. Let's watch to see if there's any recovery late in the day and a close back above 2097 would be bullish. To the downside let's watch to see if 2065 holds. Then we'll see how the market reacts to tomorrow's non-farm payroll report which has the potential to be a major market mover. ADDITIONS TO WATCH LISTS: Once again there are no additions to the Watch List today but we've got a sizable number of stocks on our Candidate Tracker list that we will be monitoring. Also, we want to be more cautious than usual at the moment; no need to get aggressive here. Instead we need to be patient as it could present some very high reward to risk opportunities. Sometimes boring is not so bad. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List MKC - Trading just above its 50 day moving average for the moment GPRO - Has hit our second entry level of $47.02 after successfully defending at its 20 day moving average earlier in the session Mid Cap Watch List RH - So far successfully defending at its 200 day moving average Small Cap Watch List SWHC - Continues to Hold up nicely in today's weak market DELETIONS FROM OUR WATCH LISTS: There are no deletions unless a Watch List stock hits its stop loss. At your service, John Hopkins, Earnings Beats