EB Watch List Update Report

MARKET NOTE: Dear Members: The market is off to a nice start as we begin a new trading day and week. The NASDAQ and S&P have both hit new all time highs with the Dow lagging. Though all of the major indexes are higher the NASDAQ continues to show the greatest strength. It's also the most overbought. It's good to see the S&P perking up some but unlike the NASDAQ it hasn't been able to break out, at least not yet. Maybe it finally does break out and starts setting new highs but so far traders are hesitating instead of moving all in. The VIX is flat; it continues to show very little fear in the market. This high level of confidence has so far kept the market from selling off in any meaningful way; the bulls remain in charge. I think it's very important to keep things in perspective here; the S&P has gone nowhere in two and a half months. Yes it touched an all time high today but that's 4 points above where it was on March 1. What gives? And I still cannot ignore the VIX that continues to show zero fear. Add to this the NASDAQ which remains very overbought and I have to say it still makes sense to err on the side of caution. I would much rather be in a position to get aggressive if stocks got cheaper. This has required patience but I think it ultimately pays off. KEY EARNINGS REPORTS Companies reporting earnings today (May 15) include: JCP Companies reporting earnings tomorrow (May 16) include: DKS, HD, JACK, SINA, SPLS, URBN and VOD ADDITIONS TO WATCH LISTS: We have update the Candidate Tracker and there are now a new batch of stocks that beat earnings expectations. Some of these could become trading candidates and we 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 flat for the day. Still 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