EB Watch List Update Report

MARKET NOTE: Dear Members: When the market gets super stretched like it has been of late, sooner or later something has to give. We're seeing all some selling today with the NASDAQ leading the way. This makes sense since the NASDAQ led the way higher. We need to keep things in perspective here; the Dow is at another record high today; traders seem very interested in blue chip stocks these days. And the S&P is barely lower. But you've got to start somewhere, even if that means putting a lid on the current rally. The VIX isn't lower today; it's up by almost 5% as traders begin to wonder in unison if a near term top is in. Part of today's selling could be linked to the realization that it's going to take some time to get tax reform in place; traders would much rather see something sooner rather than later. And government bond yields continue to sink in spite of the headlines saying the Fed could be raising rates again sometime soon. In other words we've got some uncertainty in the market which has traders locking in some profits. The real test today will be seeing if traders buy on the pullback. They've certainly been willing to do so for quite some time now. But we shouldn't be surprised if the selling picks up as the day progresses; there's still a lot of steam that needs to be let out of all of the major indexes; stochastics near 100 with RSI's at 80 show way too much optimism. In looking at the NASDAQ it looks like it could have some support near 5800 so we could see a bounce at that level. However, if traders decide to look for even better bargains then we could see even lower prices. On the S&P it looks like 2335-2340 could be in sight with 2320 also a possibility. Let's remember how strong the momentum has been the past several months; traders aren't used to seeing the market go down much. So as usual the bulls are going to try to put up a fight and if they have it there way will try to take the market even higher. But as far as I'm concerned if we are forming a near term top there could be much more selling to take place; it just might not all come in one big swoop lower. So now is a good time to lay low, see what happens as the day progresses and then revisit come the morning. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow (February 24) include: BAS.DE, BCC, FL, JCP and TDS ADDITIONS TO WATCH LISTS: Once again 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