EB Watch List Update Report

Dear Members: MARKET UPDATE Much of the same today with the market going nowhere but still holding up quite nicely. This is spite of both JP Morgan and Citigroup lower after reporting earnings this morning. The VIX is up slightly as it consolidates as well right around its 20 day moving average; no major fear but still more than the recent past. Also what hasn't changed; all of the major indexes remain technically oversold, especially the Dow. So we can see the bulls have a grip on the market at the moment. The action of late has most definitely perplexed the bears and those waiting for a pullback to buy stocks at lower prices. That is going to happen at some point but the strong bid beneath the market is keeping the market from cratering. The earnings reports this morning from JPM and C is just the beginning of what will be thousands of companies reporting their numbers over the next 3-4 weeks with some heavyweights coming out next week. So it looks like traders are willing to wait to see if the numbers come out as strong as they are hoping they will. We still need to keep in mind that without question the risk is to the downside here. Yes, the market could go higher, but the longer the market remains overbought the greater the chance we will actually see some type of correction. It makes most sense for now to remain more conservative; no need to get aggressive on the long side with the oscillators so stretched. On the other hand, as we've seen for quite some while now, trying to short this market with much success has been an exercise in futility, and until the momentum changes that will likely continue to be the case. Companies reporting earnings today (October 12) Before Market Opens C and JPM After Market Closes: None Companies reporting earnings tomorrow (October 13) Before Market Opens: BAC, PNC and WFC After Market Closes: NONE ADDITIONS TO WATCH LIST Will keep you posted if any additions to the Watch List BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List CRM - Stock is higher by almost 1% and a close back above $96.85 would be bullish. Mid Cap Watch List GWRE - Stock is higher by and a close above $80.02 would be bullish and put us another step closer to our target of $81.40. Small Cap Watch List GIII - Stock closed yesterday below our stop loss of a close below the 50 day moving averages so is being removed from the Watch List. ZUMZ - This stock is down by over 2.5% today and hit our stop loss of an Intra Day move below $17.70 so will be removed from the Watch List. DELETIONS FROM THE WATCH LIST GIII and ZUMZ are being removed from the Watch List At your service, John Hopkins EarningsBeats