EB Watch List Update Report

Dear Members: MARKET NOTE: The NASDAQ has touched an all time high today which should be pleasing for the bulls. In the meantime, the S&P has touched its all time high as well, a level not seen since August 15. The Dow is higher today as well, so a nice start to a new trading day and week. In looking at the post election rally a few things stand out. First, a great deal of the gains in the Dow came from financial related stocks. Next, small cap stocks have led the charge higher with the Russell 2000 up over 13% in a very short period of time. Then there's the VIX which I've pointed to numerous times which has almost been cut in half since it peaked on November 4 and as traders have gotten very bullish. And we've seen bond yields up sharply the past few weeks as well as traders have come to believe the Fed will announce a rate increase at their December meeting. It's possible the S&P could touch an all time high today that would give the bulls one more thing to boast about. All of this is taking place during a bullish time of the year; what's not to like? As I look at the S&P what I see is this; it hasn't made any progress since that August 15 high. It's been flat the past three months. Maybe that is about to change. As usual the market likes to look forward and so far is showing some optimism. But has a lot of the initial enthusiasm after the election results already been built into stock prices? If you look at the Dow you will see it is technically overbought with stochastics at 96 and a RSI still above 70. The Russell 2000 has stochastics close to 98 and a RSI of 75. The S&P - right as it matches its all time high - has stochastics of 97 and a RSI closing in on 70. So we're seeing a stretched market by technical measures even though momentum is strong. Getting back to the VIX; It's now showing stochastics of 1; really doesn't get any lower. It also printed a big black candle earlier in the session, perhaps showing the market has gotten too complacent. I'm pointing out some of these signs because they make me a bit nervous, not because the market cannot go higher here; it certainly could. I just don't know how much higher the overall market can climb before some type of correction. To the upside it would seem the first level to shoot for on the S&P is 2200, about 7 points away. To the downside, should the market decide to take a break there should be some support just below 2160. KEY EARNINGS REPORTS Companies reporting earnings today (November 21) include: BRCD, JACK, PANW, SINA and TSN Companies reporting earnings Monday (November 22) include: BKS, CPB, CHS, DLTR, DSW, EV, GME, HPE, HRL, HPQ, TECD and URBN ADDITIONS TO WATCH LISTS: I've been laying very low recently as segments of the market have gotten extended. To me this is not a time to chase the broader market. But I will be looking closely at stocks on the Candidate Tracker which might present a solid reward to risk opportunity and hold up even if the market does pull back some. I will let you know via email if I spot something that might be worth pursuing though I have to tell you I would still much rather buy some of these stocks at lower levels. 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 At your service, John Hopkins EarningsBeats