EB Watch List Update Report

Dear Members: MARKET NOTE: If I had to choose one word to describe the current market environment it would be "tricky." I say that because on the one hand, all of the major indexes are above all key technical levels. In some ways that should be enough to flash a bullish signal. On the other hand the NASDAQ is now hobbling along after taking a major leadership role for many months. Also, though the Dow has now taken on the leadership role it only represents 30 stocks. Then there's the S&P. It remains within one good day of its all time high. Then there's the VIX which at this moment is below all key technical levels, bullish as well. But then if we look at government bond yields they are showing a different picture than what the Fed appears to be painting. If the economy is so strong, and especially with the Fed in rate raising mode, why are bond yields stubbornly low? Does the bond market know something the stock market doesn't? This is what I mean about tricky. If the bulls hold here we could see the S&P try to revisit the recent high of 2453. That's not many points. On the other hand if traders all of the sudden decide to take profits and move to the sidelines, the S&P could lose a lot of points. So I just don't see the advantage of being aggressive to the long side here. Right now we've got a narrow range on the S&P of 2428 to the downside and 2453 to the upside. I don't think there's much to do until one of those levels goes. Otherwise it could be mostly churning action which makes it hard for both the longs and the shorts to succeed. I would rather be in a position where there is much more upside potential than there is at this time and I think patience will pay off. KEY EARNINGS REPORTS Companies reporting earnings today (June 22) include: ACN, BKS, BBBY, CCL and SONC Companies reporting earnings tomorrow (June 23 ) include: BBRY ADDITIONS TO WATCH LISTS: Will keep you posted on any new additions to the Watch List. Much rather let the market come to us rather than chase it right now. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List CYH - Stock hit our price target of $9.45 so a profit alert was sent out this morning. GREAT TRADE!. DELETIONS FROM THE WATCH LIST CYH will be removed from the Watch List John Hopkins EarningsBeats