EB Watch List Update Report

MARKET NOTE: Dear Members: I am mounting my case for a near term top in the market. There are a number of factors, including the following: 1-The VIX is up by almost 9% today as it tests its 50 day moving average from the downside even though the market is higher. This is troubling to me as I am seeing fear picking up in spite of today's buying. 2-All of the major indexes are extremely overbought. The NASDAQ has stochastics close to 100 and a RSI nearing 80. The Dow and S&P are close to those numbers. All represent sell signals. 3-The equity only put/call ratio is at its lowest level since November 15 of 2016. In other words, strong betting on the long side with a disproportionate number of calls to puts on options that expire on Friday. I see this as a contrarian signal. 4-The prime earnings season is basically over. Traders are going to be looking for other reasons to be long. 5-The S&P has been up six trading session in a row. This has happened only one other time over the past year. 6-There remain too many uncertainties that could derail the current rally at any moment. What might they be? Good question. I want to be clear that the market can remain overbought for an extended period of time but purely from a reward to risk perspective the risk is now clearly to the downside. I don't like shorting a powerful market - that is generally an exercise in futility - but if I was forced to make a decision I would opt to the downside. In looking at one more prime example, take a look at Apple, often a proxy for the overall market. It has stochastics of 98 and RSI of 90, way too extended. We might find that any selling brings willing buyers; momentum has been that strong and any pullback could be shallow. But it's a good time to considering locking in some profits and sit back and see what happens. If the market continues higher it will only be more overbought. KEY EARNINGS REPORTS Companies reporting earnings today (February 15) include: ABN.AS, ADI, AMAT, ABX.TO, CBS, CHH, CGX.TO, CSCO, GDDY, G.TO, GRPN, HUN, KHC, MRO, MAR, NTAP, NTES, NGD.TO, PHH, PGR, SNPS, TRIP, WMB and WYN Companies reporting earnings tomorrow (February 16) include: ALXN, AMBC, AEE, AVP, CHTR, DE, DUK, H, NUS, PCG, SWC, TIME, WRE, WM, WEN and YRI.TO ADDITIONS TO WATCH LISTS: No alerts will be coming out today with the market so stretched. 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 TRUE - PLEASE NOTE: This stock reports earnings after the bell today so will be removed prior to the close as we do not like to hold stocks into their earnings reports. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats