EB Watch List Update Report

MARKET NOTE: Dear Members: The lethal combination of a very stretched NASDAQ and a very low VIX finally caught up with the market last week and continues into today. In typical market fashion, giving traders little time to react, the NASDAQ fell sharply on Friday with follow through as we begin a new trading day and week. The somewhat good news for the bulls is the pullback was desperately needed plus the Dow and S&P which have been lagging the NASDAQ's torrid pace are holding quite well. In fact both remain above all key technical levels whereas the NASDAQ is trading below its 20 day moving average. This rotation in the market could have a lot to do with the Fed who is expected to raise rates when they make their announcement this Wednesday. The VIX which got as low as 9.37 on Friday has spiked above all key technical levels though off the high of the session. So the theory that a very low VIX can be used as a contrarian indicator - especially when the market is technically stretched - came into play perfectly as we saw with the swift selling on Friday. The S&P actually touched its 20 day moving average on Friday and held. Thus 2415 is now an important level of support. To the upside the bulls will continue to aim for the all time high, now at 2446. In the meantime we're going to see if traders decide to jump in on the pullback here like they have for quite some time. If not then we could be in store for some addition selling which will only set up for even better reward to risk trading opportunities. KEY EARNINGS REPORTS Companies reporting earnings today (June 12) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (June 13) include: HRB ADDITIONS TO WATCH LISTS: Will keep you posted. Want to be very selective here. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List TWTR - We changed the stop on this stock Friday to a close below its 50 day moving average which is now at $16.85. So far it has held nicely while bouncing off of Friday's low TER - Stock closed below its stop of $34.66 on Friday so will be removed from the Watch List. Mid Cap Watch List None at this time Small Cap Watch List BLMN - Stock is up almost 1.5% today and a close above $21.51 would be bullish. CYH - Stock is up 3.5% today. Would like to see it close back above $8.78 which would be very positive. DELETIONS FROM THE WATCH LIST Ter is being removed as it closed on Friday below its stop loss At your service, John Hopkins EarningsBeats