EB Watch List Update Report

MARKET NOTE: Dear Members: One thing is standing out at the moment that shows traders aren't afraid to be long stocks. The VIX is down over 3% today as it remains low by all historic measures. It had threatened to break out recently but that didn't last long. There continues to be a strong appetite for stocks. The good news for the bulls is none of the major indexes are technically overbought. They certainly aren't a bargain at the moment but they had gotten stretched to a level that was unhealthy. So far today the action is mixed with most interest on the tech side. This comes after the monthly ADP jobs report showed a much stronger result than anticipated. The stronger than expected report has resulted in higher government bond yields as traders now believe strongly the Fed will increase rates at next weeks FOMC meeting. So far all of the major indexes remain above all key technical levels. However you can see that it's gotten harder to get the major indexes moving higher in any meaningful way; in spite of a low VIX we're not seeing the type of wholesale buying that preceded this recent pullback. Even if the market holds here instead of pulling back sharply that would have to be seen as bullish; consolidation is a way to let steam out of the market as well. Right now the range on the S&P seems quite clear; 2400 to the upside and 2354 (the 20 day moving average) to the downside. That gives traders almost 50 points to work with; not that much in the scheme of things and we could see more churning than anything else if the S&P remains in this range. So to me, in the current environment, it makes no sense to short; momentum is too strong, but it still doesn't make sense to get aggressively long; maybe some very select nibbling until something gives one way or the other. KEY EARNINGS REPORTS Companies reporting earnings today (March 8) include: CIEN and TECH Companies reporting earnings tomorrow (March 9) include: DOM.L, FNSR, IGT, FIZZ, SPLS and PAY ADDITIONS TO WATCH LISTS: We added ARNC to the Large Cap Watch List earlier today. More details below. Still feel like we need to remain very selective here, keying in on those stocks that present very high reward to risk opportunities. Not so bad to hold on to some cash as we trade in the current range. PLEASE NOTE: We have added another batch of stocks to the Candidate Tracker and there are now 130 on the list. Some of these could become trade alerts, especially as they become high reward to risk candidates. Will keep you posted. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List ARNC - Stock was added this morning at initial entry price of $26.84 with a second entry on any pullback to $26.34 with a price target of $29.85 and a stop loss of any INTRA DAY move below $26.07. Should the stock hit the stop loss it would represent a loss of 2.88%. If it moves to our target price of $29.85 that would represent a gain of 11%. This is the type of reward to risk we need to look for in this market. Note also that yesterday's low was $26.65 so a move below that level today could result in further selling. 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