EB Watch List Update Report

Dear Members: MARKET NOTE: The bulls have managed to take both the Dow and S&P to new all time highs while the NASDAQ continues to lag. The Dow remains extremely overbought but no one seems to care, at least not at this moment. The VIX is lower again today as it approaches the August lows. Traders are as relaxed as can be. To put things in perspective, the VIX is closing in on 11. The all time low was in the 9's. So one can argue that there's a green light at the moment while others might argue that there will be a price to pay for this extreme complacency. But there's no arguing that the bulls have a grip on the market at this time. It's always interesting when major indexes make new all time highs since there's no history to show a higher level. In other words, where might the Dow and S&P go next? To me the next level of resistance on the S&P should be in the 2220-2225 range, should buyer appetite remain strong. And though the S&P is stretched it's not yet technically overbought, but it's getting closer. And the NASDAQ still has a lot of catching up to do and if that starts to happen we could see the market moving higher in harmony. Traders know the Fed will be meeting next week to announce an interest rate increase; it's no longer a surprise. So the fear that usually goes along with a rate increase has evaporated, at least for now. That could change next week but traders will deal with that then. In the meantime the bulls have momentum on their side and until the bears can show otherwise the market could go higher. KEY EARNINGS REPORTS Companies reporting earnings today (December 7) include: COST, HRB, IDT, KFY, and LULU Companies reporting earnings tomorrow (December 8) include: AVGO, CIEN, COO, DVMT, RH, SAIC, SHLD and TTC ADDITIONS TO WATCH LISTS: As noted yesterday we have added over 100 stocks to our Candidate Tracker that are now available for members to review on our site. Some of these could become trading candidates in the future. We added VEEV to our Watch List yesterday. 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 None at this time Mid Cap Watch List ERJ - This stock has woken up today and is up almost 2.8% as it presses up against its 20 day moving average. A close back above $20 would put the stock in better technical shape and could take it higher. VEEV - We added this stock to our Watch List today at an initial price of $42.89 with a second entry price of $42.15 on any pullback. The price target is $46.50 with a stop loss of a close below $41.50. Small Cap Watch List CBI - Stock hit our initial price target of $34.27 and a profit alert was issued earlier for those who might want to consider taking profits. We plan to leave the stock on the Watch list with our next price target at $36.35. None at this time DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats