EB Watch List Update Report

MARKET NOTE: Dear Members: We've got a new trading day and week underway as February nears an end and right now all of the major indexes are flat. I went back in history 50 years and found out how rare it is for the Dow to be up 12 straight days in a row without a break. This tells me that we're either in one of those rare periods where the market completely ignores technical warning signs of the past or that there's trouble brewing that will rear its head at some point soon. I also took a look at every one of the stocks we recently added to our Candidate Tracker and found that either stocks are just too stretched to pursue or have not pulled back to key support or technical levels that would make them high reward to risk trading candidates. In that respect this is rare as well. The VIX is up by 1% as it trades right between its 20 and 50 day moving averages; it's not breaking out to the upside and it's not breaking down to the downside. Instead, it's keeping traders wondering what the next big move might be. For sure if you've tried to short this market for 3+ months it's been an exercise in futility and likely very expensive. On the other hand, those who spotted opportunity back in November and have held on the long side have been nicely rewarded. Fast forward to now and the major indexes are on the upper end of stretched; no one wants to sell but any whiff of a top and things could change quickly. Since over time technical analysis has been consistently reliable my eyes continue to tell me that the risk remains to the downside. This doesn't mean the Dow can't challenge 21,000; that's less than 200 points from here. But it certainly is not unreasonable to think the Dow could pullback to its 50 day moving average if profit taking kicked in and that is over 800 points lower so I don't like the odds. Bottom line is we need to respect the power of the market; the momentum has been very strong. But everything seems to be priced for perfection with not much wiggle room in case there is a sudden turn. Accordingly I feel we need to remain cautious here while remembering cash is a position and can become quite useful when the market does correct. KEY EARNINGS REPORTS Companies reporting earnings today (February 27) include: AES, ALB, EOG, HTZ, PCLN and BID Companies reporting earnings tomorrow (February 28) include: AMBA, AMC, AZO, BMO.TO, BNS.TO, CABO, LNG, CBI, CHDN, DPZ, NRG, PANW, ROST, CRM, TGT, UHS, VRX.TO and VEEV ADDITIONS TO WATCH LISTS: Will keep you posted if are any new trading alerts 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