EB Watch List Update Report

Dear Members: Market Update: A mixed picture today with the NASDAQ higher while the Dow and S&P are lagging. I have to say that while I am extremely impressed with the market action I'm also getting more concerned. I can't help it; when I see stochastics on all of the major indexes near 100 and RSI's over 80 it catches my attention in a BIG WAY. The bulls will argue that when momentum is as strong as it is now and with earnings season in full swing that we shouldn't bother worrying. But there's no doubt in my mind that purely from a technical analysis perspective the overall reward to risk is to the downside. This is where it gets tricky because individual stocks can buck the trend which is fine if you happen to get involved in the right stocks. But in just three weeks the NASDAQ is up close to 8%, what some would consider a great year! I want to be clear; it's rare for all of the major indexes to be so overbought and also rare for there not to be a decent pullback when that happens. I can't tell you when we might see a pullback but the market is now priced for beyond perfection. Is this going to be the norm for a while? Maybe. But it would defy history. Right now we've only got 3 active trade alerts and that's not accidental. And I'm going to continue to be extremely selective here, even if it means we miss some opportunities along the way. Companies Reporting earnings today (January 23) Before Market Opens FITB, HBAN, JNJ, KMB, PG, STT, TRV and VZ After Market Closes: COF, CREE, NAVI, TXN and UAL Companies reporting earnings tomorrow (January 24) Before Market Opens: ABT, BHGE, CMCSA, GD, GE, ITW, NSC, NTRS, NVS, PGR, ROK, ROL, RCL, SWK, After Market Closes: AMP, BGG, DFS, DLB, ETH, FFIV, F, LRCX, LVS, LM, RJF, TER, URI, WHR and XLNX ADDITIONS TO WATCH LIST Please note that the Candidate Tracker has now been updated. For those of you who have received prior ChartList we plan to send an updated list to you later today. If you do NOT receive the ChartList by the time you get my update tomorrow, please let me know. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List QSR - Stock is lower today as it remains below its 200 day moving average which is currently at $61.47. Still important to close back above that level which could indicate near term selling is coming to an end and would be bullish. Mid Cap Watch List None Small Cap Watch List FINL - Stock is down a disappointing 3.5% as it struggles to hold above its 20 day moving average. higher by almost 1.5% and a close back above $13.64 would be bullish. PLEASE NOTE: WE ARE CHANGING THE STOP LOSS ON FINL TO ANY CLOSE BELOW THE 20 DAY MOVING AVERAGE, CURRENTLY AT $13.13. IF IT CLOSES BELOW THAT LEVEL IT WILL BE REMOVED FROM THE WATCH LIST. SCVL - Stock is down 1% after moving higher earlier in the session. Would like to see it close above the recent high close of $25.41 which would be bullish. DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats