EB Watch List Update Report

MARKET NOTE: Dear Members: Some of the dark clouds that have been haning over the market have finally caught the attention of traders with all of the major indexes down substantially this morning. How nervous are traders? Just look at the VIX, up 26% and now back above all key technical levels. At the same time the Dow has pulled back below all key technical levels while the S&P has tested its 50 day moving average and so far has held. Not surprisingly the NASDAQ is down the most; not surprising considering it has been the star index for quite a while with considerable profit opportunities for traders. Naturally traders are now asking the question; will the selling this morning be enough or could the selling go deeper? There's been such a thirst for stocks on pullbacks; will that be the case this time around? Some will argue that the market will need to pullback much more while others will argue that the overall fundamentals - i.e., earnings - have been so strong that even the political headwinds facing the market won't be enough to derail momentum. Thankfully, we have charts to look at and right now the key will be the S&P; can it hold the 50 day, now at 2069 as a close below that level could lead to more selling. From a trading perspective this could be a good reward to risk opportunity; if you end up going long use 2069 as a stop level. That's only 3 points lower. But things could get much more dicey so whatever you do proceed with caution. KEY EARNINGS REPORTS Companies reporting earnings today (May 17) include: AEO, CSCO, LB and TGT Companies reporting earnings tomorrow (May 18) include: BABA, AMAT, ADSK, GPS, MCK, PERY, RL, ROST, CRM and WMT ADDITIONS TO WATCH LISTS: Going to be scanning for high reward to risk trading candidates and will keep you posted; need to be very selective here with tight stops. 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 closed below its 50 day moving average yesterday so wil be removed from the Watch List DELETIONS FROM THE WATCH LIST SCSS At your service, John Hopkins EarningsBeats