EB Watch List Update Report

Dear Members: MARKET UPDATE This is an early bird edition of my Market Update today since I will be in travel mode later once the market opens. Right now futures are pointing to a weak open which quite frankly is very overdue. My only hope is if we get some early selling that it keeps up as the market is simply too overbought. So a good dose of selling would work in our favor. The Dow is especially overbought; it's barely had a down day in almost a month now. Right now it looks like the S&P will open down a dozen points or so if futures remain where they are right now. That's fine but I would like to see at a minimum a test of the 20 day moving average, currently at 2536. I'm not expecting that today but a few days of decent selling could take it to that level. Of course the way traders have behaved lately we shouldn't be shocked if any early selling is seen as a buying opportunity which has been the case of late. With all of the major indexes at record levels we know what the bulls will be aiming for if the market resumes its march higher. But some will argue that strong earnings are built into the market and even if we see a string of earnings beats we could have seen a near term top as well. That is quite possible and if so then we could actually see some additional profit taking. At any rate this is a time to wait for some additional earnings reports to be released, see which ones get the most positive reaction and then wait patiently to get involved in some of them on pullbacks. Hopefully we'll all be able to use this to our advantage. Companies reporting earnings today (October 19) 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 Companies reporting earnings tomorrow (October 20) Before Market Opens: BHGE, GE, GNTX, HON, KSU, MAN, PG, SLB and STI After Market Closes: None, 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 - Want to keep an eye on this one as our stop is any CLOSE below its 20 day moving average, currently at $95.68. Mid Cap Watch List None Small Cap Watch List None at this time DELETIONS FROM THE WATCH LIST GWRE At your service, John Hopkins EarningsBeats