EB Watch List Update Report

MARKET NOTE: Dear Members: Day 13 of the Dow in the green (earlier in the session) marks the best streak since 1987; traders can't seem to get enough of blue chips. This move higher today comes just ahead of the president's speech before Congress later today where traders are hoping to hear more about tax reform. Both the NASDAQ and S&P are currently lower as they continue to remain overbought as well. I'm continuing to keep a close eye on the VIX which is only up slightly but more important the 20 day and 50 day moving averages are now close to par - the gap between the two is shrinking - something not seen since last November. Should the 20 day cross back above the 50 day it could be a sign that nervousness is increasing. Any increase in nervousness could spook the market and lead to an acceleration in selling. Of course we've seen the bulls step in at critical junctures; will they do it again? They well might but it should be noted that the economic reports out this morning were either in line or beat expectations. Yet government bond yields are lower as traders continue to move towards safety. In my opinion the market remains priced for perfection; all expectations at the moment point to positive developments. This leaves little or no room for any negative surprises, something the bulls have no interest in thinking about right now. One other thing worth mentioning. The Dow is now higher by 16.5% since the November election bottom. Most investors would consider that to be a great year, let alone a nice move over three months. And this move higher has come with stochastics remaining near 100 and a RSI over 80. It's also coming at a time when the VIX could POTENTIALLY be nearing a breakout to the upside and as traders are gravitating to government bond yields even though the Fed has upped its argument for increased interest rates. It is the combination of all of these indicators which has turned me into a near term bear even though I have been quite bullish for some time now. The bulls might figure out a way to keep the rally going but I'm more cautious than usual, at least for the time being. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow (March 1) include: BBY, AVGO, DLTR, DCI, LOW, MNST, ODP, PLNT and TRCO 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