EB Watch List Update Report

MARKET NOTE: Dear Members: The market is fairly flat as we begin a new trading day and week. The NASDAQ has quietly moved above 6300 for the first time ever. At the same time it is very overbought technically with stochastics now near 100 and a RSI near 75. In fact, the NASDAQ has risen 5% in just two weeks. Traders continue to show great confidence in the market with the VIX now at 9.79 as it moves to its all time low. The S&P is technically overbought with the DOW close to overbought as well. So we're now at levels that could make it more difficult for the market to gain much ground here though trying to short the market successfully in the current environment carries its own risks. One could make a very strong argument that it makes sense to take profits here, considering the overbought conditions and nice gains of late. Of course the market could go higher but it is going to be harder to tack on points each day the market remains overbought. For sure it makes sense to be very selective here as adding new positions with the market stretched could prove to be costly if we do see a sudden correction. KEY EARNINGS REPORTS Companies reporting earnings today (June 5) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (June 6) include: PLAY, LE and MIK ADDITIONS TO WATCH LISTS: Will keep you posted on any new trading alerts. We will also be adding some stocks to the Candidate Tracker later today and will keep you posted. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List TWTR - Stock continues to consolidate and a close above $18.51 would be bullish. TER - Stock is down slightly but remains above all key technical levels and and a close above $35.78 would be very bullish. Mid Cap Watch List None at this time FOE - Stock exceeded our price target of $17.85 this morning so will be removed from the Watch List. GREAT TRADE! BLMN - Stock is up slightly as it continues to consolidate. Still would like to see it close above its 20 day moving average, currently at $20.52, would be positive. DELETIONS FROM THE WATCH LIST We are removing FOE from the Watch List as it exceeded our price target At your service, John Hopkins EarningsBeats