EB Watch List Update Report

Dear Members: MARKET NOTE: I have been looking for some type of pullback in the market and today we're seeing it in two of the three major indexes with only the Dow higher. The good news is the NASDAQ moved back and touched its 50 day moving average and so far has held. On the other hand blue chips are the clear asset of choice today with the Dow not far off its all time high. However the Dow remains extremely stretched; it's really had no relief in almost a month. The S&P moved back to the prior high of 2193 at its low of the day. It's held so far but it's still early in the session. The VIX is up by over 4% and touched its 20 day moving average from underneath for the first time since the election. So the heavy selling in the NASDAQ has reminded traders that the buying in the market had gotten overdone. Bond yields continue to climb with the ten year treasury note almost touching 2.5% at its high of the day. In fact the ten year note is now almost 100 basis points above the September 30 low, a clear indication that the Fed will soon raise rates. We'll get the monthly non-farm payroll report tomorrow which is always something traders pay close attention to since it has the ability to move the market. We'll want to watch and see if the S&P holds that 2193 level by day's end. If it doesn't, then 2180, the 20 day moving average, could quickly be revisited. And overall selling could pick up even further if the Dow starts to weaken. This could easily happen given how technically overbought the Dow is at this moment in time. KEY EARNINGS REPORTS Companies reporting earnings today (December 1) include: AMBA, DG, DCI, FIVE, KR, LE and SHLD Companies reporting earnings tomorrow (December 2) include: BIG and NA.TO ADDITIONS TO WATCH LISTS: First, please note that we will be adding a substantial number of stocks to our Candidate Tracker over the next few days and will let you know when they are on the site. We issued a long alert on ERS this morning. More on the stock below. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List AKAM - This stock is down by over 3% as the NASDAQ is sharply lower. We are maintaining a stop of a close below the 20 day moving average which is currently at $65.61. So unless the stock closes back above that level it will be removed from the Watch List. Mid Cap Watch List ERJ - This stock has held up well today as it remain above its 50 day moving average. The initial entry price was at $19.69 with a second entry on a pullback to $19.15. The price target if $22 with a stop of a close below $18.87. Small Cap Watch List None at this time DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats