EB Watch List Update Report

Dear Members: MARKET NOTE The bulls are doing a decent job of keeping stocks from falling much today. They know they are nearing key resistance up near 2060-2080 level. And it's coming with the Dow and S&P technically overbought. So naturally there is going to be a struggle which is almost always the case when you close in on important resistance levels. But traders aren't running for the hills here; they continue to nibble on any hint of selling. That's a positive sign that is backed up by the VIX remaining well below all key technical levels even though it is up very slightly today. In looking at the S&P it is conceivable it could revisit that 2080 level last seen in December of last year. But is the market ready to challenge the all time high of 2134 which isn't that much farther above? That might be asking a bit too much. To the downside the 200 day moving average, currently at 2017, should be considered key support. It's a level the bulls worked hard to clear so they are likely to fight hard to hold it on any further selling. So we've got just about 30 points either way, to key resistance and to key support. That seems about as neutral a trading range as you can get. In other words, toss a coin to see what comes up first. But once we look beyond the most immediate and important levels of support and resistance it does seem like the S&P has more downside than upside risk. So I'm inclined to remain cautious about getting aggressively long here; the market has had a very nice ride up for the past six weeks. And if it does move higher in the near term it will just get more overbought and in even greater need for some type of correction. KEY EARNINGS REPORTS Companies reporting earnings today (March 21) include: CCL Companies reporting earnings tomorrow (March 22) include: FIVE, NKE, RHT and SCS ADDITIONS TO WATCH LISTS: As a reminder, we added General Cable Corp - BGC - to our short Watch List last Friday. More info below. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: BGC - This stock was added as a short candidate on Friday at an initial entry price of $11.03. It has made a big move since the recent bottom even though it missed its earnings. We have a very tight stop of a close above $11.48 since a close above that level could take the stock even higher. MDLZ - This stock continues to struggle and a close back below $40.61 would put the stock back below all key technical levels which could take it even lower. LONGS: Large Cap Watch List There are no Large Cap stocks on the Watch List at this time. 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