EB Watch List Update Report

Dear Members: MARKET NOTE The monthly jobs report came out much better than expected with all of the major indexes higher. For the first time since early January the S&P has crossed back above 2000. At the same time the 20 day moving average has crossed back above the 50 day for the first time since mid December which is bullish. Confidence is building with the VIX down again today as traders feel more comfortable being in on the long side. One by-product of this move higher is stochastics on the S&P are at 99; that's very overbought territory. But so far the RSI has not confirmed the market is technically overbought. But any further buying could change that as well. Now the question becomes, can the S&P hold 2000 into the close? The next MAJOR level of resistance is the 200 day, now at 2023 where there is bound to be a big battle if the S&P even gets there. Needless to say the bulls would love to keep the momentum here so if there is some selling the question is will traders be willing to buy on the dips? If so there should be some near term support near 1970 on the S&P. Below that would be 1941, the current 20 day. For sure the shorts have felt the same kind of pain the longs felt earlier in the year. But we do want to see if enthusiasm wanes here; don't forget the S&P has climbed from 1810 less than one month ago. So, from that perspective, the reward to risk at this exact moment in time is to the downside. Doesn't mean we're getting ready to pullback hard but putting it all together this will be a time for traders to consider taking some profits and watching to see what develops. KEY EARNINGS REPORTS Companies reporting earnings today (March 4) include: SPLS Companies reporting earnings Monday (March 7) include: SHAK and URBN ADDITIONS TO WATCH LISTS: Here we are with the market technically stretched after a significant move off of the most recent bottom. So, too tough to get aggressively long here but there could still be some juice left in the rally. Want to see if we near that 200 day moving average on the S&P and then decide if will add some shorts. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List SHORTS: HBI -We lost the battle on this one and it stopped out yesterday after closing above $29.50. ROP - Stock continues to go nowhere fast, in spite of the recent rally. 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: We removed HBI as it stopped out yesterday. There are no other 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 with my EB Watch List Update report on Monday. John Hopkins, EarningsBeats