EB Watch List Update Report

Dear Members: MARKET UPDATE The Dow has powered thru 23,000 on the heels of IBM's surprise beat of earnings with the stock up over 8%, a rarity for that stock indeed. The NASDAQ and S&P are barely higher; this is a blue chip day. The VIX is down slightly but remains above its 20 day moving average; the overbought Dow is even more overbought today with stochastics now near 100 and a RSI of 84. Earnings season is now is full swing and we're going to see those companies that beat and guide higher likely advance while those that miss could move lower. But the good news is we're going to end up with a lot of stocks that rise sharply after they report and will ultimately become high reward to risk trading candidates. There's no indication that the market is getting ready to pull back hard except for the fact that all of the major indexes are extended. So we could continue to see higher prices, though it's going to get harder the more extended the market becomes. Companies reporting earnings today (October 18) Before Market Opens ABT, MTB, MTG, NTRS and USB After Market Closes: AA, AXP, BXS, EBAY, KALU, KMI, SLM, STLD, UAL and URI Companies reporting earnings tomorrow (October 18) Before Market Opens: BK, BBT, BX, DHR, FNB, GPC, KEY, MBFI, NUE, NVR, PM, DGX, SNA, SON, TXT, TRV, VZ, and WGO After Market Closes: ATHN, ETFC, ISRG and PYPL, ADDITIONS TO WATCH LIST Going to keep an eye on all companies reporting with many of them being added to the Candidate Tracker when appropriate BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List CRM - Stock is down slightly. PLEASE NOTE. We changed our stop on CRM to any CLOSE below its 20 day moving average, currently at $95.66. Mid Cap Watch List GWRE - Stock closed below its 20 day moving average yesterday so is being removed from the Watch List. Small Cap Watch List None at this time DELETIONS FROM THE WATCH LIST GWRE At your service, John Hopkins EarningsBeats