EB Watch List Update Report

Dear Members: MARKET NOTE: The insatiable appetite for stocks continues today with all of the major indexes hitting fresh all time highs. Traders seem content in deploying capital into what is already a very stretched market. The move from the past few weeks is predicated on a host of things taking place, including tax cuts, infrastructure spending, reduced regulations and other potential changes that are being seen as positive for the economy and the market. So quite a rosy picture even then nothing has actually been enacted. At the same time, government bond yields have risen sharply as has the US Dollar with traders preparing for the first Fed rate hike in a year that they expect will come next week. This new found optimism leaves little room for going off script with stocks now priced for perfection. Of course the market could continue higher here. But just consider the Dow where stochastics are at 97 with a RSI of 84. The RSI has been at or above 70 for a full month now which is rare; it won't last. And each day it continues to be at extreme overbought levels it lowers the reward to risk potential evern further. It's why I decided to get more defensive with our alerts yesterday; market sentiment is simply too giddy here. We'll continue to hear that the ballgame has completely changed which may well be true. But turns can come quick, just when least expected, so I'm willing to lay low for the moment and let this run its course with complete confidence that sooner or later we'll have much better opportunities than are available at this exact moment. KEY EARNINGS REPORTS Companies reporting earnings today (December 9) include: MTN Companies reporting earnings Monday (December 12) include: There are no key earnings reports due out Monday ADDITIONS TO WATCH LISTS: I remain very reluctant to add more alerts at this time. At a minimum going to be very selective. 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 was removed from the Watch List yesterday at a price of $19.31 since the chart pattern had deteriorated. VEEV - The stop loss was changed yesterday to any intra day move below $43.24 which was triggered today so it will be removed from the Watch List. Small Cap Watch List CBI - Stock is higher today but was removed from the Watch List yesterday. DELETIONS FROM OUR WATCH LISTS: ERJ, VEEV and CBI are being removed from the Watch List. I want to wish everyone a restful weekend and will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats