EB Watch List Update Report

Dear Members: MARKET NOTE: Dear Members: We've now got three up days in a row as we get ready to close out the month of June. Most likely a great deal of the buying is related to institutional need to buy stocks into quarter end. Accordingly the S&P has climbed back above all key technical levels, aided by the Bank of England making a statement that they stand prepared to stimulate the economy as necessary over the summer. The reason; the economic picture is deteriorating. As usual the market loves to hear anything relating to stimulus programs; its become addicted to band aids. However, I believe strongly that the market will soon see beneath the surface that things are not in great shape and accordingly we will see a necessary correction. Just one indicator to back up my thinking look at government bond yields with the ten year now at 1.47%. Its low for a reason; investors like safety whenever they sense trouble is looming. However, for today the bulls are showing some muscle and are hoping to re-challenge the all elusive 2100 level. It's only 15 points away. Certainly the mood has improved; the VIX is down another 7%. At the same time, the equity only put/call ratio is now at .56. This means just about everyone is betting on the market going higher. It's also often a contrarian indicator and given the recent action could be setting the market up for a major correction. If I'm wrong then we could miss some opportunities on the long side. But there's something about the way the market has behaved this week that makes me very uneasy. Accordingly I'm content to remain very cautious at this moment and see where things stand over the next few days and as we get ready for a new trading month. KEY EARNINGS REPORTS Companies reporting earnings today (June 30) include: CAG, STZ, DRI, MKC, MU and PAYX Companies reporting earnings tomorrow (July 1) include: There are no major companies reporting earnings tomorrow ADDITIONS TO WATCH LISTS: We will continue to hold off on any new alerts 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