EB Watch List Update Report

MARKET NOTE: Dear Members: The rally of late has been technology driven with the NASDAQ closing in on 5200 for the first time since July of last year. In the meantime, both the Dow and S&P have stalled; the S&P has barely budged the past few weeks. Where the NASDAQ was technically overbought as July came to an end it is now further stretched with stochastics nearing 100 and a RSI of 72. At the moment no one seems to care and in fact the move higher has come with economic reports showing a weakening economy. I should point out that the last time the NASDAQ got to the 5200 level in July, 2015, it topped and was down by 18% one month later. In no way does this mean we will see a repeat this year but it does point out how vulnerable the market is at this particular point, especially given the complete lack of fear out there. The old adage - do not fight the tape - shouldn't be ignored here. On the other hand with the NASDAQ so overbought one has to wonder how much more room there is to the upside. The all time high is 5231 so that will be a target for the bulls; it's only 30+ points away. Should profit taking kick in the first key level of support on the NASDAQ is 5053, so close to 150 points from today's high. Clearly it is possible for the market to remain technically overbought for an extended period of time. But getting aggressively long at such lofty levels just doesn't make sense. I do want to point out that when the NASDAQ did hit its all time high last year the VIX was near 12 which is exactly where it is today. The bulls will point to the fact that earnings in the tech sector have been stronger than expected which may be true. But it should also be pointed out that the NASDAQ has climbed almost 14% over the past 30 days showing investors have acknowledged the positive earnings results and as earnings season begins to wind down. The S&P has hit a new all time high today of 2178. We'll want to see if this holds into the close. To the downside 2151 is the first key level of technical support. KEY EARNINGS REPORTS Companies reporting earnings today (August 1) include: AEGN, AMKR, DO, DNB, GGP, SOHU, THC, GRA and WMB Companies reporting earnings tomorrow(August 2) include: AET, Y, AIG, ADM, CAR, AVP, CZR, CAH, CERN, CHH, CMI, CVS, DVN, DISCA, DWA, KODK, ETN, EA, FMCC, FISV, FIT, HRS, H, MLM, MOS, NBR, PFE, PBI, PG, QRVO, RCL and STX ADDITIONS TO WATCH LISTS: We're continuing to hold off issuing any alerts with the market so stretched 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 Mid 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: At your service, John Hopkins, EarningsBeats