EB Watch List Update Report

MARKET NOTE: Dear Members: The power of clearing 2300 on the S&P has become evident with all of the major indexes higher and in record territory. Investor confidence is high with the VIX dipping back into the 10's. Remember that the all time low in the VIX was in the 9's and the all time high near 90. In addition, the equity only put/call ratio is back in the 50's; heavy betting on the long side. So traders are feeling good; maybe too good? Generally the VIX can be a contrarian indicator; when it gets too low be careful and when it gets too high jump in with both feet. This is a bit tricky here because momentum is strong and the market could most definitely go higher; it can remain overbought. I do have to point out that the NASDAQ is at extreme overbought levels here with stochastics about as high as they can go and a RSI at 73. So it's almost a guarantee that we'll see a correction of some type. The question is when and how large might it be? We could be at a point where any selling is met by willing buyers. This is what happens when the momentum is so strong. But it becomes trickier to get aggressively long when the market has barely paused in three months. I had mentioned a target of 2325 on the S&P if 2300 was cleared. So far today its gotten as high as 2315. If we do see some selling the bulls will be looking to defend 2300 and if buyers hold their positions here I believe we could get to that 2325 level. So that's the new trading range with the bulls continuing to get the benefit of the doubt unless we see something that says its time to shift gears. KEY EARNINGS REPORTS Companies reporting earnings today (February 10) include: CPN Companies reporting earnings tomorrow (February 13) include: AMKR, FDC and ON ADDITIONS TO WATCH LISTS: I'm reluctant to put out any new alerts here with the market so stretched. Like to see at least some pullback before adding. 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 JBL - This stock is up against heavy resistance at $25.14. It went above that level earlier in the session but it is now extremely overbought. Our target is $23.55 which it could have a shot at if it closes strong. However it could also stall/retreat given how stretched it is at the moment. Therefore, we are RAISING THE STOP to any Intra Day move below $24.90. This would at least help preserve any profits from the original alert price of $24.10. Small Cap Watch List TRUE - Stock is up by almost 1.5% today as it held where it needed to and is back above all key moving averages. A close above $13.47 would be very bullish. JKS - Stock is up over 2% today as it attempts to clear its 20 day moving average. A close above $14.80 would be a positive. DELETIONS FROM OUR WATCH LISTS: None at this time I want to wish everyone a restful weekend. PLEASE NOTE: Monday's Market Update could be delayed or abbreviated due to a scheduling issue. Will keep you posted. At your service, John Hopkins EarningsBeats