Special EB Report - Thursday, November 19, 2020

This will be an abbreviated version of my Daily Market Report as I'll be working all day researching the 10 equal-weighted stocks that will be included in our four portfolios for next quarter.

Announcements

Our Strong Earnings ChartList (SECL), Strong Future Earnings ChartList (SFECL), and Short Squeeze ChartList (SSCL) have been updated on our website. Once you're logged into your EB.com account, you can go to the "ChartLists" page and follow the instructions to download these three ChartLists into your StockCharts.com Extra or Pro account. If you're a Basic member at StockCharts, it will be worth the upgrade to Extra in order to be able to download our ChartLists (which represents all of our research) into your account. If you're a Basic member, you can view our ChartList stocks one by one, but it's a time-consuming task as our SECL alone now has 493 charts in it.

Next, today is DRAFT DAY for our portfolios. At 5:00pm ET this afternoon, I'll be announcing the 10 equal-weighted stocks that will comprise each of our four portfolios - Model, Aggressive, Income, and Strong AD. Room instructions will be sent out in a separate email later today.

Brief Market Update

Futures were slightly lower this morning and all of our key indices opened in negative territory. On the S&P 500, you can look for short-term support near 3510 (gap) and 3507 (20 day EMA). Should those two levels be lost, be careful in the very near-term as we know that "max pain" for the SPY was 7% below Tuesday's close. I never rule out what market makers might do around options expiration Friday, which is tomorrow. Both the week leading up to options expiration and the week after can be quite volatile and history backs me up on this.

One stock to watch today is L Brands (LB). They reported awesome quarterly results and are currently trading at 39.29, up 16.90%. But there are a TON of in-the-money calls and few in-the-money puts, so if the bulls lose control of the action today, we could see quite a reversal. This is only a short-term consideration. Longer-term, I really like the price action on LB and the quarterly results. If market makers can get control, however, it'll get interesting.

I'll be back tomorrow with my usual Daily Market Report, though you can expect it to be published fairly early tomorrow morning.

Happy trading!

Tom