EB Watch List Update Report

Dear Members: Market Update: We've finally got some decent selling after the market got so extended with all of the major indexes lower. Almost immediately the VIX spiked higher but is well off session highs with traders calming down after they saw buyers jumping in on the selling. There was no getting around the fact that the market needed some relief; day after day of record highs needed to pause at some point. Now the question becomes, will we see the selling pick up later in the day or will we see once again that buyers continue to take advantage of even small pullbacks? The move lower today comes ahead of some big banks getting ready to report earnings on Friday including JPM, PNC and WFC. To me this will serve as the "official" kickoff of earnings season which will be followed by thousands of companies reporting earnings the next 3-4 weeks. Remember that expectations are high; companies that miss expectations are likely going to see a negative impact, in some cases, it could be severe. It's why we preach against holding stocks into earnings reports; it's great when they go in your favor but extremely painful when they don't. We'll keep a close eye on the action as the day progresses to see if the mood has changed or if this is simply a blip on the radar screen. Companies Reporting earnings today (January 10) Before Market Opens LEN After Market Closes: KBH Companies reporting earnings tomorrow (January 11) Before Market Opens: DAL After Market Closes: None ADDITIONS TO WATCH LIST We added ANBA to the Watch List this morning, however it moved below the INTRA DAY stop of $56.10 so will be removed from the Watch List. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Before I comment on our trade alerts I want to emphasize the importance of honoring stops if a trade goes against us. It's NEVER pleasurable when a trade stops out but I have seen so many stocks that break important stops fall much lower. It's not going to happen every time but what might be a reasonably small loss could snowball quickly so please keep this in mind at all times. SHORTS: None at this time LONGS: Large Cap Watch List None Mid Cap Watch List NAV - Stock is down slightly but remains above all key technical levels. At this point we would like to see it close back above $44.47 which would be bullish. SAIC - Stock is down slightly but remains above all key technical levels and a close above $78.68 would be bullish. Small Cap Watch List AVAV - Stock is lower by almost 2% as it failed when it tested its 20 day moving average yesterday and did not recover. We're going to keep our stop of any INTRA DAY move below $52.10 in case it continues to move lower. If it can reverse at some point and close back above its 20 day moving average, currently at $54.05, that would be very bullish. SORL - Stock is down over 1.5%. Would like to see it close above yesterday's close of $7.42 which would be bullish. DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats