EB Watch List Update Report

MARKET NOTE: Dear Members: Yesterday presented a perfect snapshot of this current bull market. Just when it looked like the bears might make some progress buyers stepped in right where they needed to and as the S&P touched its 20 day moving average. It's the same thing that has frustrated the bears over and over the past several months. Then this morning the jobs report exceeded expectations with stocks rallying after the news though the major indexes are off the highs of the session. I pointed to a neutral VIX yesterday; it's sitting right near its 20 and 50 day moving averages; it's ready to fall if stocks continue to rally but could rise on any hint that the rally is pooping out. The strong jobs report pretty much guarantees the Fed will raise rates when they make their announcement next Wednesday at 2:00 pm eastern. This had already become evident with the rise in government bond yields. Now traders are left to wonder how many times the Fed might raise during the year. But that's for later. Right now traders are reluctant to surrender any stocks they are holding long in fear of missing out on any further move to the upside. We continue to have a well defined range of 2400 to the upside and the 20 day moving average, now at 2356 on the S&P, to the downside. I don't mean to make it sound so simple but those two levels are important; clear 2400 and there's more room to run and close below the 20 day and the bulls will lose the technical advantage for the first time in quite a while. I should also point out that when a major index is trading in a fairly narrow range it makes it much trickier to score big gains with churning often becoming frustrating and even costly. This is why we've been so picky lately and have gone light on the alerts; the very near term "no-man's land" has to be respected until something gives. KEY EARNINGS REPORTS Companies reporting earnings today (March 10) include: MTN Companies reporting earnings Monday (March 13) include: There are no key earnings reports due out on Monday ADDITIONS TO WATCH LISTS: Will continue to be very selective in the near term and notify members via email on any additions to the Watch List. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List ARNC - Stock hit our second entry level of $26.35 yesterday. It's actually forming a black candle today which I'm not crazy about as that often signals a reversal. The stock remains oversold but let's be careful here in case it continues to head lower. We will leave our stop loss at any INTRA DAY move below $26.07. Mid Cap Watch List DATA - This stock was added to the Watch List yesterday at a price of $49.49 as it had pulled back substantially after better than expected earnings. It's struggling to gain any traction today even though it is oversold. I don't like that it has moved below the 50 day moving average which is now at $49.21. We are going to leave the stop loss in place; any close below the 50 day moving average and it will be removed from the Watch List. If you tend to the conservative side you might want to consider stepping aside as the stock could move lower on any market weakness. It would be a positive if the stock can rally to close back above its 50 day as it might indicate the worst of the selling is nearing. Small Cap Watch List None of this time DELETIONS FROM OUR WATCH LISTS: None at this time unless they hit a stop loss I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report At your service, John Hopkins EarningsBeats