EB Watch List Update Report

Dear Members: Market Update: For the first time in quite a while the bulls blinked yesterday but they are trying to make it up today. They could well succeed but the VIX continues to show worry has returned to the market as it is higher again today in spite of higher stock prices. For the bulls this is a very tricky time; they've controlled the action for a very long time and don't want to lose the momentum. But even with yesterday's selling the market remains overbought; it's going to take more than one day of selling followed by a day of buying to relieve the overbought oscillators. Of course the bulls have been marked for doom plenty of times on any bit of selling only to roar right back; maybe they'll pull it off again. Of course we are now in the very beginning of Q4 earnings season so traders might be willing to hold onto stocks for a bit longer to see how the overall numbers come out. But it's still a time to be more cautious here just in case the selling does pick up. At least we have a range to work with now on the S&P of 2768 to the downside and 2807 to the upside. So let's see what happens today by the time the bell rings and go from there. Companies Reporting earnings today (January 17) Before Market Opens BAC, FAST, GS, SCHW and USB After Market Closes: AA, HBHC, KMI and SLM Companies reporting earnings tomorrow (January 18) Before Market Opens: BK, BBT, KEY, MTB, MTG, MS and TSM After Market Closes: AXP and IBM ADDITIONS TO WATCH LIST Going to continue to watch the market closely and be very selective. BRIEF COMMENTS ON WATCH LIST STOCKS As you've noticed lately, it's been more difficult getting to price targets which is not uncommon when the market is so stretched. In fact we've had some stocks stop out; it's going to happen and it's a way to be defensive when the action is choppy. In fact it becomes very important to honor stops just in case things get even dicier. SHORTS: None at this time LONGS: Large Cap Watch List QSR - Stock is higher but off the high of the session as it touched the 50 day moving earlier in the session. A close back above that level, currently at $62.88, would be bullish. Mid Cap Watch List NAV - Stock has been challenged more lately after the nice move a few days back. It's now trying to stay above its 20 day moving average, currently at $43.66 and if it CLOSES below the 20 day it will be removed from the Watch List. SAIC - Stock is higher today and remains above all key technical levels. Would still like to see it close above $78.75 which would be bullish. Small Cap Watch List NCS - This stock moved below its stop of an INTRA DAY move below $18.65 yesterday so is being removed from the Watch List. FINL - Stock has regained 3% this morning as it held its 20 day moving average on yesterday's selling. A close back above $13.64 would be bullish. DELETIONS FROM THE WATCH LIST NCS is being removed from the Watch List as it moved below its stop At your service, John Hopkins EarningsBeats