EB Watch List Update Report

Dear Members: MARKET NOTE: The Fed will be center stage on Wednesday as we begin a new trading day and week with only the Dow currently higher this morning. The Blue Chip Dow is doing what it has been doing non-stop for over a month now; going higher in spite of being extrememely overbought. It's as though the bulls are on a singular mission to get the Dow to 20,000 which of course would be a first. But think about this. That 20k level is less than one percent higher, so easily achievable. On the other hand the first key level of support on any pullback is roughly 3% lower from here. So while it might be a milestone for the bulls to brag about the Dow hitting 20,000, the reward to risk at this point is to the downside. Let's remember something else. The Fed rate announcement due out Wednesday is being treated as a non-event; that the Fed will raise rates .25 and all will be well. But nervousness could pick up over the next two days, witness the VIX, currently up over 6% even though the Dow is higher. We also need to remember that options expire on Friday and looking at the outstanding puts to calls on the major indexes the big betting is for the market to remain elevated. I often see this as a contrarian indicator; everyone is betting on a higher market. There's no denying the bulls have a very big grip on momentum here so fighting the trend is a losing proposition. On the other hand the Dow, which has been leading the move higher, is even more overbought today than it was on Friday. That doesn't give me more comfort, it only raises my caution antenna even further. Thus I feel it continues to make sense to wait for better opportunities; they will come along sooner or later. KEY EARNINGS REPORTS Companies reporting earnings today (December 12) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (December 13) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: We have a clean slate at the moment; no outstanding alerts. Not going to chase here. Remember that cash is a position as well. 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 At your service, John Hopkins EarningsBeats