EB Watch List Update Report

Dear Members: MARKET NOTE: The market has gotten some much needed relief the past two sessions with all of the major indexes lower as we near the end of the year. The signs of an overbought market have existed for quite some time and today the VIX is up over 3% as it moved back above its 20 day moving average yesterday and as traders think twice about being long. The good news for the bulls is so far all of the major indexes have held all key technical levels. And it's coming at a time of the year when stocks have historically done quite well into year end. The question now becomes; will we see a "last minute" rally into tomorrow's close or will the selling pick up with fear increasing some? Maybe another plus for the bulls; the headlines have stopped screaming Dow 20,000. So the all out frenzy has at least subsided. I do believe traders are content at this time to be a bit more cautious which makes sense. I want to point out that nothing on the charts is showing a technical breakdown. However, the NASDAQ is closing in on its 20 day moving average, now at 5420. And the S&P is not far from its 20 day moving average, now at 2244. So these are two levels we need to watch. If those levels go then get ready for some more selling. But if nothing else the market has been incredibly resilient for almost two months now and that cannot be ignored. Bottom line: no need to get aggressive on the long side but shorting brings risks as well. Accordingly best to lay low, see if key support levels hold and go from there. KEY EARNINGS REPORTS Companies reporting earnings today (December 29) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (December 30) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: We added HLX as a long alert earlier this morning. More details below. 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 - This stock was added as a long alert this morning at an entry price of $8.92 with a very tight stop of a close below $8.75. Price target is $10.20. DELETIONS FROM OUR WATCH LISTS: None at this time Please note this will be the last Market Update of the year. So I want to wish everyone a Happy New Year and I will be back with my EB Watch List Update Report on Tuesday, January 3, 2017. At your service, John Hopkins EarningsBeats