EB Watch List Update Report

Dear Members: MARKET NOTE: We can see that the Dow is in a world of its own at the moment. It's been like that every since the results of the election, so four sessions in a row now. The insatiable appetite for stocks in the Dow has now put it in the extremely overbought category with stochastics in the mid 90's and a RSI at 72. The same cannot be said of the NASDAQ which is struggling to remain above key technical levels. And the S&P is somewhere in between; above all key technical levels but having a very difficult time making any further progress to the upside. As of this update, the Dow is printing a black candle, usually a sign that a reversal is near. This makes sense. But traders aren't letting go of their blue chip positions easily and an overbought market can remain overbought, even though ultimately some steam will need to be let out of the market. Oil and gold are lower once again as traders move away from commodities and into equities. But in looking at the charts this now looks to be overdone. Ditto on bond yields with the 10 year treasury note getting as high as 2.27. And in looking at the TNX it is very stretched as well while also forming a black candle. Under "normal circumstances" it would seem to be a no-brainer; the Dow is primed for a decent pullback. But there's nothing normal about the past week. Still, we need to respect the charts and the charts are saying the Dow has gone up too much too quickly. So have bond yields. Thus its just too risky to be chasing equities at this particular moment. KEY EARNINGS REPORTS Companies reporting earnings today (November 14) include: There are no key earnings due out today Companies reporting earnings tomorrow (November 15) include: A, ARMK, DKS, HD, TJX, VOD and ZBRA ADDITIONS TO WATCH LISTS: First, please note that we are adding a batch of stocks to our Candidate Tracker later today. Will let you know when they are posted. Next, the VERY STRETCHED Dow is making me nervous. When it pulls back it could take both the NASDAQ and S&P along with it and not worth chasing at this time. If the Dow continues to go higher, fine. Will just be even more overbought. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List PPYL - Stock continues to struggle as it tests its 200 day moving average. As a reminder we have a stop of a close below $40.05. Mid Cap Watch List None Small Cap Watch List HLX - Stock continues to put in higher highs and at its high of the day got within 23 cents of our target of $9.85. So if you've got nice profits don't hesitate to lock them in or at least consider raising your stop loss. None at this time DELETIONS FROM OUR WATCH LISTS: None At your service, John Hopkins EarningsBeats