EB Watch List Update Report

Dear Members: MARKET NOTE: The market is off to a good start as we begin a new trading day and week with all of the major indexes higher. A few things stand out today. First, traders can't get enough of blue chip stocks with the Dow hitting a new all time high. Next, along with the rotation of money into the Dow comes the fact that it is technically overbought, as it has been for the past few weeks. This might explain why it hasn't moved even higher; it gets harder to convince traders to get overly aggressive when a stock or index is technically overbought. Next, the move higher today comes on the heels of a key vote in Italy rejecting proposed reform. Next, the VIX is down by over 11%; traders are back to being in a very good mood. In looking at the NASDAQ its a positive sign that it is joining in today's rally. However it's still lagging both the Dow and S&P having dipped below both its 20 and 50 day moving averages on Friday and it's still well below its recent all time high. So we continue to have a bifurcated market with tech stocks not currently on the must have list. We're now just over a week away from the Fed's interest rate decision which will take place one week from Wednesday. At this point the only surprise would be if the fed decided to not raise rates as the market has priced in a 100% chance they will give the green light. Bundled all together it's tough to be bearish here. But it's also tough to be overly bullish here with tech stocks in a funk and the Dow technically overbought. All leading me to seeing the market in mostly a neutral status; hard to short and hard to get too aggressive on the long side. For now we can use 2214 as upside resistance on the S&P and 2183 as support. KEY EARNINGS REPORTS Companies reporting earnings today (December 5) include: HBC.TO Companies reporting earnings tomorrow (December 6) include: AZO, BMO.TO, PLAY, MIK and TOL ADDITIONS TO WATCH LISTS: We will be adding over 100 new stocks to our Candidate Tracker between today and tomorrow and will let you know when they are available for member review. I will continue to look for high reward to risk trading opportunities for members while keeping overall market behavior in mind. 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 ERJ - This stock continues to consolidate right at its 50 day moving average. As a reminder we have a second entry price of $19.15 on a further pullback. Small Cap Watch List None at this time DELETIONS FROM OUR WATCH LISTS: None at this tie At your service, John Hopkins EarningsBeats