EB Watch List Update Report

Dear Members: Market Update: When the market is so stretched it takes a lot of effort for the oscillators to unwind to a level where the market is no longer overbought. It could be a few days of heavy selling or it could be more of a slow drip, or even consolidation, which is what we are seeing now; traders are stubbornly holding on to their long positions. On the one hand that's a plus for the bulls. On the other hand it gets harder and harder to find stocks that still have a lot of juice left in them. Honestly, we would be much better off if we saw some heavy selling as it would present much better opportunities. It might hurt on existing long positions but not so much if appropriate stops were in place. In other words, much better reward to risk than exists now. For now we'll maintain a range on the S&P of 2808 to the upside and 2768 to the downside. It could stay in this range as we start seeing a ton of earnings reports coming out over the next few weeks. Companies Reporting earnings today (January 19) Before Market Opens KSU, SLB and STI After Market Closes: None Companies reporting earnings Monday (January 22) Before Market Opens: BOH, HAL and UBS After Market Closes: NFLX, STLD, AMTD and ZIONS ADDITIONS TO WATCH LIST We added SCVL to the Watch List yesterday with more details below. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List QSR - Stock is down almost 1% as it tests its 200 day moving average which is currently at $61.41. Would certainly like to see it close above that level and even better close back above the 20 day which is currently at $62.03. Mid Cap Watch List NAV - Stock closed below its 20 day moving average yesterday so was removed from the Watch List. SAIC - Stock closed below its 20 day moving average yesterday so was removed from the Watch List. Small Cap Watch List FINL - Stock is higher by over 1.5% and a close back above $13.64 would be bullish. SCVL - This stock was added yesterday at an initial entry price of $25.40 with a second entry on any pullback to $24.75 and with a price target of $28 and a stop loss of any INTRA DAY move below $24.25. A close above the 20 day moving average, currently at $25.63, would be bullish. DELETIONS FROM THE WATCH LIST NAV and SAIC were removed from the Watch List. At your service, John Hopkins EarningsBeats