EB Watch List Update Report

MARKET NOTE: Dear Members: I'm happy to see some more selling today in all of the major indexes; it's been way overdue. The market likes it as well with the VIX down almost 4% as it moves back below all key technical levels. In other words traders seem to like the fact that some steam is coming out of the market; it's made them less nervous. The selling we're seeing isn't that much but like I said yesterday you have to start somewhere. A few things that could be going on include traders realizing that earnings season has come and gone, the post election euphoria had gotten long in the tooth and the Fed is seriously considering raising rates at its upcoming March meeting. And it apparently has dawned on more traders that the market just flat out got technically overbought. Even with today's selling the Dow remains technically overbought with both the NASDAQ and S&P much closer to being overbought than neutral. The next day or two could be revealing. Will traders see the little bit of selling as a buying opportunity or might we see some additional profit taking? I'm hoping that we see even more selling because we could get right back to being overbought quickly which would not be healthy. In looking at a chart a pullback to the 2350 level would keep the S&P above all technical levels. The Dow could fall another 400 points and still remain technically healthy. So there's some wiggle room here that might satisfy the bears some while keeping the market in good shape. Fed Chairwoman Janet Yellen will be giving a speech today that will start at 1:00 pm eastern. Traders will be listening to every word to see if they've gauged correctly that the Fed will raise rates in about two weeks. The reaction to her words might tell us if the market is actually ready for further rate increases. I think at this point it makes sense to hold off doing anything else until next week. I am confident that we will have plenty of opportunities to get more aggressively involved in the market on more favorable terms. KEY EARNINGS REPORTS Companies reporting earnings today (March 3) include: ADSK, CON.DE, COO, COST, JOY, KGX.DE, KR, MRVL and SPLS Companies reporting earnings Monday (March 6) include: KFY ADDITIONS TO WATCH LISTS: I want to let everyone know that we will be adding approximately 100 new stocks to the Candidate Tracker that we hope to make available to members over the next few days. This will give us a nice new batch of potential trading candidates to look at, hopefully at even better reward to risk levels. 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. I want to wish everyone a restful weekend and I will be back with my EB Watch List Update Report on Monday. At your service, John Hopkins EarningsBeats