EB Watch List Update Report

MARKET NOTE: Dear Members: The market took a day off yesterday but that has changed today as a new trading month begins. A lot has happened between yesterday's close and today including a well received presidential speech, a change in the likelihood of a rate increase by the Fed in March and new record highs on all of the major indexes. What hasn't changed is a market that is as overbought as it has been in many years. Of course the risk of getting cautious in a very overbought market is to miss moves like we are seeing today. This happened back in the late 1990's when the tech bubble burst; no one wanted to miss any moves higher even though the signs were clear that a top was forming. I want to point out that the VIX is down by 8%. At the same time, the 20 day moving average did cross the 50 day earlier in the session. To me this points out that in spite of today's strong showing skepticism has increased. But try telling that to the bulls. Interestingly a few important economic reports came up short of expectations this morning including construction spending and consumer spending. But manufacturing and housing data exceeded expectations and in a market with the kind of momentum we are seeing bad news gets totally ignored. In looking at the major indexes we've now got both the Dow and S&P with stochastics close to 100 and RSI's over 80. In fact the RSI on the Dow has been over 80 for close to a month now showing overbought can remain overbought. But I still cannot ignore those few but notable times when the market got so overbought, including 1987, 1999 and 2007. Maybe this time will be different with the market continuing its ride higher but in my opinion the risk for a major correction has increased. Everything best work out to complete perfection which is rarely the case. KEY EARNINGS REPORTS Companies reporting earnings today (March 1) include: BBY, AVGO, DLTR, DCI, LOW, MNST, ODP, PLNT and TRCO Companies reporting earnings tomorrow (March 2) include: ADSK, CON.DE, COO, COST, JOY, KGX.DE, KR, MRVL and SPLS 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