EB Watch List Update Report

Dear Members: MARKET NOTE The market is preparing for tomorrow's non-farm payroll report with traders taking a wait and see attitude. The gains from the recent rally are mostly in tact even with the major indexes lower. In fact the VIX is lower today, hitting levels not see since the end of last year. In the meantime, oil is higher again today, something that has been bullish for stocks all year long. Economic reports from this morning were mixed; nothing strong or weak enough to move the market significantly. Though stocks are lower today all of the major indexes remain above their respective 20 and 50 day moving averages giving the bulls some technical advantage. In fact, the 20 day is converging on the 50 day on the S&P and a cross above would be bullish. The last time this happened was mid October of last year which led to higher prices. So this is a big deal for both the bulls and the bears. The next target for the bulls is 2000 on the S&P and then 2024, the current 200 day moving average, which would likely be a brick wall should the bulls succeed in keeping control of the action. And all of this happening ahead of the jobs report tomorrow which could be the deciding factor on whether the market heads higher or if the current rally stalls, To the downside the bulls will be looking to protect 1938 on any selling as a close below that level could spell trouble. So we could stall today but expect plenty of volatility once the payroll numbers are released tomorrow. KEY EARNINGS REPORTS Companies reporting earnings today (March 3) include: ADS.DE, NSU.DE, CIEN, CON.DE, COO, HRB, HPE, and KR Companies reporting earnings tomorrow (March 4) include: SPLS ADDITIONS TO WATCH LISTS: We're going to hold off on any additions to the Watch List today ahead of tomorrow's jobs report as there's no way of telling how the market will respond to the numbers. It's not a bad time to have some cash on hand to take advantage of any big swings in the market. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List SHORTS: HBI -This stock has remained stubbornly bullish even when there has been selling in the overall market and we will keep a stop of a close above $29.50. ROP - Stock continues to consolidate. A close below Monday's low of $167.93 could take this stock lower. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List There are no Small Cap stocks on the Watch List at this time. 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. John Hopkins, EarningsBeats