EB Watch List Update Report

Dear Members: MARKET NOTE: The bulls are pleased with the action this morning with all of the major indexes higher. This follows a strong showing from markets overseas with the headlines giving the bulk of the credit to a new poll showing anti Brexit forces in the lead. I should point out that something else was going on Friday and that is options expiration. So that noose has been loosened and part of what we could be seeing today has to do with the unwinding of options puts and calls. The VIX is down over 12% today with traders feeling a bit less stressed, at least this morning. But it still remains above both its 20 and 50 day moving averages with traders wondering if the early gains can hold. I will make the argument that the market remains vulnerable here as the S&P once again presses up against the 2100 level. And though their has been a sigh of relief that the UK might not leave the European Union don't think for a second that it will suddenly disappear before the June 23 vote. In addition, Fed chairwoman Janet Yellen is getting ready for two days of testimony before legislators and with all of the confusion surrounding the Fed's intentions volatility could continue to remain in the spotlight. All of this to say it remains a very tricky trading environment unless you are willing and able to act quickly. If anything I would consider shorting here and up to the most recent high of 2120 on the S&P. Should that level go then the market could head higher. To the downside we need to watch to see if 2079 holds on any selling since that would return the technical advantage to the bears. Bottom line: let's remain cautious here and protective of capital until things settle down. KEY EARNINGS REPORTS Companies reporting earnings today (June 20) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (June 21) include: ADBE, KMX, CCL, FDX and LEN ADDITIONS TO WATCH LISTS: Not adding any Watch List stocks at this time BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time 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 or above the stop loss provided. At your service, John Hopkins, EarningsBeats