EB Watch List Update Report

Dear Members: MARKET NOTE: It's Fed day and so far the major indexes are lower. Interestingly there were a few weaker than exected economic reports this morning, including retail sales, so some fresh data for the Fed to look at as they prepare to make their interest rate announement at 2 pm eastern. The only mystery at this point has to do with the words that accompany the expected .25 increase and how does the market interpret those words; dovish or hawkish. From my perspective I care more about what the charts are telling me and right now they are telling me this market has moved too far too fast. That might put me in the minority with many market participants certain that the Dow will hit 20,000. But the Dow got within 47 points of that majic number yesterday; that's pretty darn close. To illustrate the optimism in the market at this time I refer to Mandy XU who is derivatives strategist at Credit Suisse who points to the fact that demand for call options have reached an all time high. In other words, a record set for traders betting the market will go higher. Not surprising but to me a warning sign that a lot of options traders could be setting themselves up for major disappointment. The Fed rate announcement later today could even embolden traders more or put the brakes on this most recent rally. But it doesn't change the fact that the market is technically stretched. Personally I would very much like to see a market correction. I don't like chasing the market when it is extended, even if it means I miss out on some additional upside. So we're going to stay mostly sidelined here unless something looks like it has a high enough reward to risk potential to make it worth while. KEY EARNINGS REPORTS Companies reporting earnings today (December 14) include: Joy, PIR and PGR Companies reporting earnings tomorrow (December 15) include: ADBE, JBL, ORCL and RAD ADDITIONS TO WATCH LISTS: No additions at this time. Will let you know via email if I find something worth pursuing. Going to be very selective for the time being. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: LZB - This stock was added as a short alert yesterday 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. It got as low as $31.75 today and 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