EB Watch List Update Report

Dear Members: MARKET UPDATE It gets harder to bet against the bulls each day but each day the market gets more overbought. The NASDAQ is onto its 10th straight green day in a row, a rarity indeed. In fact, stochastics are now at 99; can't really go any higher as the appetite for tech stocks grows each day. The VIX remains on the very low end of the spectrum as it got close to 9.50 this morning and close to the all time low of 9.39 in December, 2006. I did some comparing and see that the VIX remained in the 9-11 range for about two months back then before it began a rise that lasted about 8 months, culminating in a peak near 80. It then took six years for the VIX to get back to the 10 level. And now it has remained in that low level for about three months with an occasional move higher but always gravitating to the lower end and as far away from the peak as it has ever been. This may turn out to mean nothing but there's no doubt we are on the upper end of euphoria which almost always results in a significant correction. But at this particular moment the bulls don't seem to care about the past; they are looking forward with expectations that earnings will continue to be solid, and if they are right the market could go higher. Today alone the NASDAQ almost touched 6400 as it registered an all time high. And the S&P touched its all time high today as well at 2477. In looking at the options chain on the SPY (S&P) and QQQ (NASDAQ) it would surprise me if the move higher continued into tomorrow's expiration. In other words, just too many bets on the long side. So it would seem the best the bulls will do here is consolidate with the odds more in favor of at least some type of pullback. There are some big names reporting after the bell today including Microsoft, EBAY and Visa, and in the morning GE, HON and SLB, to name a few. But next week will bring even more earnings from the large tech companies so traders might just wait before looking to get aggressive on the long side again IF earnings continue to beat expectations. Bottom line: The odds are against the market moving higher the next few days as the NASDAQ and S&P remain overbought. It remains hard to bet against the market but also makes no sense to me to chase stocks at these levels, even if we end up missing some upside. KEY EARNINGS REPORTS Companies reporting earnings today (July 20) include: ABT, BK, BBT, BX, CHKP, DHR, DOV, FNB, KEY, MTG, NUE, PM, SAP, SHW, SNA, SON, TRV, UN and UNP After Market Close: ATHN, COF, ETFC, EBAY, ISRG, MSFT, NCR, SKX, SKWS and V Companies reporting earnings tomorrow (July 21) include: Before Market Open: CL, FITB, GE, GNTX, HON, HBAN, KSU, MCO, NVR, SLB, STI and VOD After Market Close None ADDITIONS TO WATCH LISTS: Will let members know if spot any high reward to risk trading candidates. I'm a bit nervous at the moment. 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 PLAY - Stock has finally cleared both its 20 and 50 day moving averages, at least Intra Day. A close above the 50 day, currently at $67.08, would be a plus for the stock. DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeats