EB Watch List Update Report

Dear Members: MARKET NOTE: We've got rotation in full swing mode today with the Dow up nicely as it hits an all time high while the NASDAQ has turned negative after posting early gains. Banks are in favor and tech stocks are not with the NASDAQ right back below its 50 day moving average after trying to regain some technical strength earlier in the session. The S&P is back above its 20 day but still struggling to gain much traction. The VIX is showing some resumed confidence but not on the tech side. While the bulls are happy to see the Dow doing well let's remember that it represents only 30 stocks with banks pulling the index higher. So to me there's not that much to cheer about as we get ready for a shortened day with the market closed tomorrow for the July 4th holiday. Though the VIX is lower today I've noticed something worth watching. The 20 day moving average is converging on the 50 day from above. Quite often when the 20 day crosses below the 50 day it can be a bearish signal. In the case of the VIX this would mean it would rise which could be bearish for stocks. It is quite possible the market remains bifurcated for a while with a small number of blue chips shining with the bulk of stocks more sluggish. For sure the bulls would like to see the S&P close above 2430. The NASDAQ got as low as 6087 so that is now key support. Bottom line to me is it's best to get through today and see what happens come Wednesday. Just no need to rush here. KEY EARNINGS REPORTS Companies reporting earnings today (July 3) include: There are no key earnings reports due out today Companies reporting earnings Wednesday (July 5 ) include: MLHR There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: None at the moment. Let's wait for even better opportunities. 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 None at this time DELETIONS FROM THE WATCH LIST None at this time I want to wish everyone a happy fourth of July and I will be back Wednesday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats