EB Watch List Update Report

Dear Members: MARKET NOTE: The Fed did its thing yesterday, including raising the Fed Funds rate by .25 and signalling additional raises next year. This resulted in a pullback yesterday followed by regaining the losses today. It is an interesting notion that the market is cheering higher rates, especially given the market's thirst for Fed accommodation that helped to keep the market propped up for the past several years. But so far today the proof is in the pudding that traders seem pleased that the Fed has taken action; not so much mystery today. The VIX is fairly flat today as it hangs out right near its 20 day moving average; it's not showing excess fear. However, it has moved away from a downward bias to an upward bias; at least some skeptisism with all of the major indexes right near all time highs. The selling from yesterday and the buying today is pretty much a wash. However, it does not change the fact that both the Dow and S&P are technically overbought, with the Dow at overbought levels that are rare; meaning the Dow has been technically overbought for well over a month now. Thus, my near term outlook has not changed; there's simply no big reason I can point to that says let's jump in on the long side. That was something much more appealing 2000 points ago. In looking at the S&P the most recent high was 2277, so that is now resistance. To the downside it got as low as 2248 so that is the first level of support. But to me a much more important level of support is the 20 day moving average, now just above 2220. Bottom line? I still see no rush to get aggressive on the long side. ANY out of the blue event could quickly put pressure on stocks. Not worth the risk, in my opinion. KEY EARNINGS REPORTS Companies reporting earnings today (December 15) include: ADBE, JBL, ORCL and RAD Companies reporting earnings tomorrow (December 16) include: There are no key earnings reports due out today 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 - Stock got as low as $31.45 this morning before bouncing some. Price target to the downside remains at $30.25 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