EB Watch List Update Report

Dear Members: MARKET NOTE: Trader's are finally locking in some profits in what has become a very overbought market. Accordingly, the major indexes are lower, with the NASDAQ leading the move down. The bit of selling we are seeing hasn't changed the mood much with the VIX up only slightly. But it's a start with recognition that complacency had hit levels that are often followed by selling. In looking at the Dow it hasn't changed the fact that it remains very overbought. We're going to have to see a much deeper pullback in order to relieve these extremely overbought conditions. You can bet the bulls are still thinking about Dow 20,00; that hasn't changed. But traders are being reminded that things can change quickly and to at least be on guard. The S&P remains in consolidation mode with 2277 remaining key resistance and the 20 day moving average, now at 2238, key support. If we do see more selling it will be a test to see if buying appetite remains strong. However, I think we're looking at a lid on the market short term. And I also believe the reward to risk in the short term is not high enough to chase stocks here. Instead it's a time to start winding down for the year, avoiding unnecessary risks, and realizing there are only a few trading days left in the year. No one knows what January will look like but unless we see a deeper correction between now and year end, being on the long side come the first of the year brings with it additional risk. KEY EARNINGS REPORTS Companies reporting earnings today (December 22) include: CAG and RAD Companies reporting earnings tomorrow (December 23) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: None at this time. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List HLX - We changed the stop loss on this stock to any close below its 50 day moving average. Since it closed below its 50 day moving average yesterday it is being removed from the Watch List. SDRL - We had a stop loss on this stock of any Intra Day move below $3.53 which happened yesterday so it it being removed from the Watch List. DELETIONS FROM OUR WATCH LISTS: HLX and SDRL are being removed from the Watch List At your service, John Hopkins EarningsBeats