EB Watch List Update Report

Dear Members: MARKET NOTE In yesterday's update I pointed to 2038 as a level the bulls hoped to clear on the S&P and that 2060 would be next. So far today the S&P has climbed to 2052 so just 8 points from the next that 2060 level. But today we now have both the Dow and S&P technically overbought with the NASDAQ moving toward the same status. At the same time the VIX has fallen further, back under 14, and at levels not seen since November of last year. Oil continues its ascent so no drag on the overall market. So the stars have lined up quite nicely for the bulls with the exception that two of the three major indexes are technically stretched. To the downside 1990 is the first line of technical support, representing the 20 day moving average. So we've got near term potential of 8 points or so to the upside and 60 to the downside. It doesn't mean this is what we will see but it does point to limited upside potential after non-stop movement higher for over a month now. What is going to be most interesting is to see if traders buy on the dip if we do see some selling. If so then that will certainly have to be seen as bullish in the near term. In any event, we are now at a level that could make some sense to consider a short position or two on those companies that missed earnings expectations and could lose some steam on any selling. Accordingly, you will see that we are adding a short candidate to our Watch List below. KEY EARNINGS REPORTS Companies reporting earnings today (March 18) include: TIF Companies reporting earnings tomorrow (March 21) include: CCL ADDITIONS TO WATCH LISTS: Both the Dow and S&P are technically overbought with the S&P nearing key resistance. Accordingly, we are adding a company to our short list as follows: General Cable Corp - BGC Short entry at $11.03 (price as of this email) with a price target to the downside of $9.85 and a stop of a close above $11.48. All details will be added to the Watch List section later today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List SHORTS: MDLZ - Stock is up just slightly close below $40.64 would put the stock back below all key technical levels which could take it even 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. At your service, John Hopkins, EarningsBeats