EB Watch List Update Report

MARKET NOTE: Dear Members: Traders are trimming positions some today in the face of a very overbought NASDAQ and a very complacent VIX. The selling took the S&P right to its 20 day moving average while the DOW moved right through its 20 day to test its 50 day earlier in the session. At the same time the VIX moved exactly up to its 20 day from underneath before pulling back some with traders very nervous earlier in the session. Some of the nervousness today could have to do with recent developments on the political side as well as a PPI report that showed a big spike in inflation on the wholesale side. Of course today's selling is not all that surprising; it's been moving higher non-stop for a long time now so some profit taking makes sense. We're pretty much through earnings season; it's been mostly solid but traders are always asking, "what's next?" We've seen the Dow and S&P struggle to break out as they've continued to lag the NASDAQ. So it's not surprising that they are showing the most weakness on the selling. Naturally, if traders start believing in unison that the market has put in a short term top, then we could see some additional selling. It might be too early to tell if this is the case. However, should the S&P close below its 20 day, now at 2381, then we could see traders get more defensive. It's certainly possible the market could hold here; we all have seen how resilient the bulls have been. But from my perspective the market remains vulnerable here; momentum could turn quickly. So best to remain in cautious mode at the moment. KEY EARNINGS REPORTS Companies reporting earnings today (May 11) include: KSS, M, JWN, PCRFY, RGLD and TEVA Companies reporting earnings tomorrow (May 12) include: JCP ADDITIONS TO WATCH LISTS: We have identified some stocks that beat earnings expectations that will be added to the Candidate Tracker over the next day or two. 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 down 1% but remains above all key technical levels. Needs to get back over $31 to get back on track. DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeats