EB Watch List Update Report

MARKET NOTE: Dear Members: When we left off Friday before the long holiday weekend the market was technically overbought. That certainly has not changed today. In fact all of the major indexes have hit new highs as traders continue to commit capital to stocks, overbought or not. Of course we all know the market can remain overbought; it's very difficult to pinpoint the exact day the market might retreat. And it's also difficult to determine precisely how much the market might pullback, especially when the momentum is so powerful. Having said that, it would also be very unusual for the market to proceed much higher without some type of correction. I base this thought on the fact that at this point stochastics simply cannot go much higher on any of the major indexes and now we've got a RSI at 80 or above all the way around. Sometimes a correction can come in the form of consolidation; the market stops going up but it doesn't go down much either. In fact, this has been a pattern for over three months now, without one serious correction. But it's also easy to get lured into a market that seems like it never wants to stop. In looking at the VIX it has settled down some after showing signs of potentially climbing higher last week But it's still showing one finger on the sell button as traders realize that at some point something needs to give. There's a lot of optimism in the market now with some lofty expectations so any hint of potential disappointment could be a catalyst for some selling. I acknowledge the strength in the market at this exact moment in time. We've now got a new range on the S&P; 2366 to the upside and 2314 to the downside and I still see the strength as an opportunity to book some profits while waiting for better entry points. KEY EARNINGS REPORTS Companies reporting earnings today (February 21) include: FSLR, FDP, GPC, HLS, HSIC, HD, M, MDT, MORN, NEM, PZZA, VRSK, WMT and WLL Companies reporting earnings tomorrow (February 22) include: Y, BAYN.DE, CAKE, CLR, CLGX, DISH, ESRT, GRMN, HST, HPQ, JACK, LB, LHO, NCLH, PGRE, PSA, SINA, SBGI, SIX, SO, SQ, SUN, TEX, TSLA, TOL, RIG, UTHR and WWW ADDITIONS TO WATCH LISTS: Going to continue to remain disciplined and not chase here even if we miss some additional upside. I believe we'll get much better opportunities once the market shakes out some. 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 None of this time DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats