EB Watch List Update Report

Dear Members: MARKET NOTE It's Fed rate announcement day and so far the market is proceeding with caution. In fact, the S&P is literally touching its 200 day moving average as traders await the decision at which point the action is likely to begin. Interestingly, the market has shifted from fighting against any rate increase to accepting that another one will come sometime soon, with the hope that the economy will strengthen in the future. Thus if the Fed surprises the market by being silent on future rate increases, the reaction could be negative. The VIX shows that traders are less fearful than they were earlier in the year. In fact the VIX is as low as it has been for all of 2016. But we've all been around long enough to know that there really isn't any way of predicting with total accuracy how traders will react to a key announcement. And since the S&P is hugging its 200 day, the reaction takes on even more importance; is the market ready for a leg up or have we hit a near term top? If we do see a positive reaction then that 2040 level could come into play. On the flip side, a negative response could see a quick move to 2000 and even lower. The bulls could live with a pullback as long as 1977 holds; below that is a potential move to the 1930 range. So, not much to do until the announcement is out of the way. KEY EARNINGS REPORTS Companies reporting earnings today (March 16) include: FDX, GES, MLHR, JBL, PGR, SLW.TO and WSM Companies reporting earnings tomorrow (March 17) include: ADBE ADDITIONS TO WATCH LISTS: We will hod off on any new long or short additions to the Watch List at this time. Let's see how the market reacts to the Fed rate announcement and go from there. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List SHORTS: MDLZ - Stock is lower today as it hovers just above its 20 day moving average. A close below $41.26 could lead to even lower prices. ROP - Stock put in a slightly lower high today but needs to close back below $173 to set up a possible move lower. As a reminder, we have a stop of a close above $177 in case it moves higher. 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. At your service, John Hopkins, EarningsBeats