EB Watch List Update Report

MARKET NOTE: Dear Members: The bulls like having control of the market these days and why not? Once again all of the major indexes are higher with the Dow hitting an all time high. So now we have two of the major indexes hitting all time highs this week. The NASDAQ continues to lag but it is back above 5000 for the first time all year. Complacency is now center stage with the VIX back in the 12's, the equity put call ratio back near .5 and the yield on the ten year treasury note touching 1.50 earlier in the session. In other words, traders feel all is good in equity land. It's helping that Alcoa beat earnings expectations last night with the stock up over 5%. A good way to get the earnings season underway. We're certainly nearing overbought conditions; stochastics on all of the major indexes are well over 90. But the RSI on the respective indexes is still below 70 meaning the market is not "technically" overbought. But it's close. I did mention in yesterday's update that I felt the S&P could move to 2150 which is exactly what it did today. Should gains hold here my next target would be 2160. To the downside you can bet the bulls will be looking to hold the S&P above the recent breakout right near 2130. We should keep in mind that this is options expiration week as well. So the complacency we're seeing now could be challenged as the week continues as options puts and calls are squared. Bottom line: Nice bullish action with the Dow and S&P at all time highs but the market is starting to look a bit toppy here so some profit taking sometime soon would not be surprising. Still, tough to fight the tape. KEY EARNINGS REPORTS Companies reporting earnings today (July 12) include: FAST Companies reporting earnings tomorrow (July 13) include: CSX, KMI and YUM ADDITIONS TO WATCH LISTS: Please note that we will be adding a new batch of stocks to our Candidate Tracker by tomorrow. We'll let you know when these are available. This will present some fresh trading opportunities, especially if we see a pullback after this nice move higher. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List NWL - Stock is up slightly today and a close above $49.46 would be very bullish. Mid Cap Watch List 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 other 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