EB Watch List Update Report

Dear Members: MARKET NOTE: We have been in caution mode for a while now and for good reason. Today we're seeing all of the major indexes down by over 1.4%. And it's coming just a few trading days ahead of next week's Fed interest rate announcement. Consider it the market's message to the Fed, one last plea to hold the line on rates. But it's not going to work this time as the Fed is ready to proceed. Trader's just want to see it to believe it. We're also seeing oil down once again; no one wants to touch it. But, I saw something very interesting that to me indicates at least a near term bottom in oil may soon be in. It has to do with options expiration next Friday and specifically, the energy sector ETF, the XLE. What I'm seeing is a massive imbalance of puts to calls on the XLE. Specifically, there are roughly 2000 calls near the money and 160,000 puts near the money. So a staggering imbalance and one that I see as a contrarian indicator; no market maker wants to have to pay premiums on all of those puts. And now oil is right near $35 a barrel which historically has stood up. If I'm right, and we see a near term rally in oil, it should lift the major indexes into year end. It doesn't mean it has to happen today but certainly any reversal into the close would be very bullish. As it pertains to the S&P, it has basically touched the November 19 low of 2019. Will that do the trick? Maybe. If it doesn't hold here 2000 could come quickly. And the S&P remains technically challenged as it is now below all key technical levels. So today's close could tell us something, and especially if the S&P could close back above 2056, perhaps too tall of an order with traders in heavy duty sell mode and are worried what Monday morning might bring. KEY EARNINGS REPORTS Companies reporting earnings today (December 11) include: There are no key earnings reports due out today. Companies reporting earnings Monday (December 14) include: PAY ADDITIONS TO WATCH LISTS: No additions at this time. Let's see how things play out. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List BSX - Stock is down slightly but at or above all key technical levels in a lousy market. JNPR - Stock remains technically challenged here and we will keep our closing stop at a close below $28.40. Mid Cap Watch List EEFT - Stock is down over 2% today giving back all of yesterday's gains. WYN - This stock is lower by over 1.5% today and a close above $75.23 would be bullish. Small Cap Watch List IMPV - This stock is lower and we have a stop of a close below $68. INVN - This stock held is fairly flat and a close above $11.60 would be bullish. DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update report. At your service, John Hopkins, EarningsBeats