EB Watch List Update Report

Dear Members: MARKET NOTE: In the scheme of things today's selling is not that bad. But what it does show is a reluctance to commit additional capital in an already stretched market. The bulls do get credit for taking the NASDAQ to an all time high. But with no history of higher prices, traders were happy to take profits rather than risk losing after the big run up of late. The S&P remains stuck, same as it has the past four months, and just as it got within 4 points of an all time high. In looking at the VIX its flat for the day but continues to show traders are fearless. There are also increasing signs that more retail investors are moving into stocks, just as the NASDAQ hit its all time high, perhaps the same investors that remained sidelines when fear was rampant. We cannot ignore the strong momentum here; it's been powerful. But when I see the small cap index rise 13% in just a few weeks it's a sign that traders have gotten too giddy. The good news for us is we know that there is strong resistance on the S&P at 2193. And we know that so far the bulls have failed numerous times over the past many months to clear that level. At the same time the first key level of support is right around 2150, so roughly 10 points to the upside and 30+ to the downside; not such a great reward to risk right now. But trying to short this market right now, especially given the historically bullish time of the year, has risks as well. This is why I am content to sit on my hands and do nothing! KEY EARNINGS REPORTS Companies reporting earnings today (November 18) include: ANF and FL Companies reporting earnings Monday (November 21) include: BRCD, JACK, PANW, SINA and TSN ADDITIONS TO WATCH LISTS: Repeating what I said yesterday, I took a close look at all of the new stocks we just added to the Candidate Tracker. What I found was many stocks have performed very well since they reported their earnings and are too stretched to consider taking on a position at this time. But they could become excellent trading candidates if we get a decent pullback. Just don't want to chase them at this time and I believe patience will be rewarded. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List None at this time DELETIONS FROM OUR WATCH LISTS: None at this time I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats