EB Watch List Update Report

MARKET NOTE: Dear Members: So, not much happened overnight; just the FBI director fired, leading to a frenzy of opinions and with the market so far shrugging it off as no big deal. Instead of the wholesale selling that many thought might occur, the major indexes are barely down. And how worried are traders about the latest development? The VIX is down close to 1.5%, back into the 9's, and one day closer to the all time low; at the polar extreme of worried. Before we declare the all clear signal it should be pointed out that the VIX is now showing technical signs of being too low with stochastics as low as 3 earlier in the day and a RSI nearing 30. In other words, you can look at a chart of the VIX just like you do an individual stock or index with key oscillators like stochastics and the RSI telling a story. So even though the market is shrugging off the developments overnight the VIX remains near all time complacency lows with signs that it could be bottoming. It doesn't mean the market needs to collapse; the VIX could remain low for a while. And traders continue to show they are way more interested in corporate earnings which have so far been better than expected while clinging on to hopes of tax cuts and fewer regulations down the road. But there's still no disputing that the NASDAQ is technically overbought, the Dow and S&P continue to play second fiddle and traders ARE overly complacent, maybe even cocky while emboldened when something out of the blue flares up and the market completely ignores. The market is famous for catching traders off guard when they least expect it. So even though at the moment good news is wholly embraced while bad news is cast aside I cannot support any case for stocks to move higher in the near term; it's just too risky; maybe a piece of bad news out of the blue finally sticks. It wouldn't take much for stocks to retreat in a meaningful way if traders in unison see that a top has formed. So to me it is a time to err on the side of caution rather than load up on the long side. KEY EARNINGS REPORTS Companies reporting earnings today (May 10) include: MYL, NTES, NCLH, SNAP, BID, SYMC, TIME, TRCO, FOX, VMC, WEN, WFM and WWW. Companies reporting earnings tomorrow (May 11) include: KSS, M, JWN, PCRFY, RGLD and TEVA ADDITIONS TO WATCH LISTS: We will be updating the Candidate Tracker over the next few days, including some new additions that could become trading opportunities. Will keep you posted. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List SCSS - Stock is up slightly after hitting our second entry level yesterday. It's been consolidating near the $31 level so any close above that level should be seen as bullish. DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeats