EB Watch List Update Report

MARKET NOTE: Dear Members: The little bit of selling we've seen so far in the NASDAQ and S&P has done nothing to alleviate a technically stretched market. We've also got the Dow hitting another record high as it is now up nine trading sessions in a row, impressive (or worrying) by any historical measure. The VIX is showing that traders are on the fence, but leaning on the side of caution, at the moment as it hovers just above its 50 day moving average. And the gap between the 20 and 50 day moving averages continues to narrow; the 20 day has not been above the 50 day since mid November. Economic data this morning showed existing home sales hit their highest level in ten years. This has some thinking this is more fuel for the Fed to raise rates sooner rather than later. However, bond yields continue to show a different picture as traders question whether or not the Fed is really ready to raise rates, in spite of some more recent and positive economic signs. This afternoon we'll get minutes from the most recent Fed meeting which could also shed some light on what they are thinking. But no matter what the minutes show it won't address how overbought the market is at the present time. In looking at the S&P, it could pull back to its 20 day moving average, currently at 2319, and the bulls would still maintain the technical advantage. So any fears of a pullback should be taken into context; it's long overdue and would be healthy and should be welcomed by the bulls; even they know something needs to give here. I want to point out once again that the market can remains overbought for an extended period of time. But right now it is priced for perfection; no margin for error here. So I continue to believe it is in our best interest to err on the side of caution and worry less about missing a little bit of upside compared to what could be a substantial correction at any time. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow (February 23) include: ACHC, APA, BIDU, BARC.L., BRCD, CHK, CNK, GPS, HLF, HRL, HHC, IMAX, INTU, IRM, KSS, VAC, MNST, JWN, PF, SWN, STMP, STWD, TTC, VC, W and ZBRA 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