EB Watch List Update Report

Dear Members: MARKET NOTE: The headlines and talking heads on CNBC continue the ongoing mantra of Dow 20,000. Why not? The Dow got to within 85 points earlier in the session so that's not much. The S&P and NASDAQ have also hit all time highs today. To me this simply means we are now one more day extended. I should point out that in spite of the records being broken today - or perhaps because of them - the VIX is higher; it's stopped going down. In fact it almost touched its 20 day moving average earlier in the session showing nervousness is building some. And it should be. Of course the Fed will be making its interest rate announcement tomorrow and so far continues to be treated with very little fanfare. But this could change over the next 24 hours as traders realize the lopsided reward to risk is to the downside. One thing I keep hearing is this; why bother selling stocks prior to year end when tax rates could be lower next year? That makes some sense. On the other hand it shouldn't be the main reason to hold on to stocks; that can become a losing proposition quickly. In other words, holding off on selling a stock with significant profits on the "hope" that taxes will be lower won't look so good if that stock pulls back significantly into the end of the year. Anyone who has been a part of my service over the years should know that I'm neither a perma bull or a perma bear. If anything I lean to the bullish side, and why not? The market has continued to move higher since its March 2009 bottom. And I also believe it makes no sense to fight the tape; momentum has been powerful here. But I'm starting to see too many signals that show this current rally is tiring and there just isn't much margin for error here; everything needs to work out perfectly. Maybe it will but that would be surprising. The S&P got as high as 2272 so that is now new resistance. To the downside it looks like the S&P could pullback to the 2210 level should traders decide to cash in on some nice profits. KEY EARNINGS REPORTS Companies reporting earnings today (December 13) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (December 14) include: JOY, PIR and PGR ADDITIONS TO WATCH LISTS: We added LZB as a short alert with more information below BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: LZB - This stock was added as a short alert this morning at a price of $32.45. with a price target to the downside of $30.25 and a stop of any INTRA DAY move above $32.85. A close below $31.50 could set the stock up for a move lower. 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