EB Watch List Update Report

Dear Members: MARKET NOTE: We've got a mixed picture today with blue chips in demand while the NASDAQ and S&P are in the red. The Dow has logged a new all time high which only makes it even overbought though no one seems to care at this exact moment. The VIX is up slightly but still remains on the lower end of the historical spectrum; all is well in equity land. Bond yields have spiked again today as the market has now priced in a 100% chance the Fed will hike rates at its December meeting. In addition, the US dollar has touched a 13 year high while gold has hit a 9 month low. Adding to the market fuel is the positive time of the year which historically benefits stocks. In looking at the charts there are a few things worth mentioning. First, both the Dow and Russell 2000 have stochastics of 99 with RSI's well above 70. Technical analysis 101 shows that this is often a topping level. So sooner or later there will be a price to be paid. Next, while the S&P did climb above 2200 yesterday it is now back below that level and in fact is now just a few points above the August 15 high of 2193. That's not much progress. Overall optimism remains very high; a much different picture from a few weeks back when a lot of money remained on the sidelines. Of course things have changed signficantly since the election, at least this is what the market is telling us. Clearly the market could continue to rise here but does it make sense to chase stocks when the charts are showing stocks are so extended? In my opinion, no. KEY EARNINGS REPORTS Companies reporting earnings today (November 23) include: DE Companies reporting earnings tomorrow (November 24) include: None ADDITIONS TO WATCH LISTS: I remain hesitant to add any trading alerts at this time. I realize this can be frustrating but prefer to be more aggressive when indicators are in our favor. 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 The market will be closed tomorrow and open for half a day on Friday. Accordingly, barring a major development, this will be the last update until next Monday. So, I want to wish everyone a peaceful and happy Thanksgiving and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats