EB Watch List Update Report

Dear Members: Market Update: I went back almost 20 years to see at what point the RSI on the major indexes got as high as they are today. On the NASDAQ you have to go back to the year 2000. On the Dow and S&P they've never gotten as high as they are today. In fact the combination of stochastics near 100 and RSI's in the mid to upper 80's has never really existed, certainly not for an extended period of time. Obviously things are much different today than they were in 2000 when many tech companies went bust. Now the major tech companies have strong earnings, contained costs and lots of cash to work with. At the same time we should at least consider that the levels we are seeing on the RSI today are historic in nature. Does this mean that we need new measurement tools going forward? I don't think so. Technical analysis has been tried and true for decades and I don't see it changing overnight. I have to admit it is very impressive how quickly buyers come in on any pullback; we saw that this morning when the NASDAQ went briefly red only to rise as traders jumped right back in. But each day the market moves higher the reward to risk to the downside rises. In looking at the S&P it now has a new high of 2852. It's risen 100 points since January 11. For now I intend to err on the side of caution as I don't see any reason to chase a market that one might say is as extended as at any point in history. It might continue rising. But, if the market suddenly decides that a top is in we could see some major profit taking, and why not? Remember that corrections often come when least expected. Maybe this time around will be different but I doubt it. Companies Reporting earnings today (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 Companies reporting earnings tomorrow (January 25) Before Market Opens: MMM, ALK, AAL, BIIB, CAT, CELG, FCAU, GWB, JBLU, MKC, NOC, NVR, OSK, RTN, SHW, LUV, UFI and UNP After Market Closes: ETFC, FICO, FLEX, INTC, ISRG, KLAC, MXIM, SBUX and WDC ADDITIONS TO WATCH LIST None at this time BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List QSR - Stock is higher by 1.8% as it tries to clear its 50 day moving average, currently at $62.52. A close above that level would be bullish. Mid Cap Watch List None Small Cap Watch List FINL - Stock closed below its 20 day moving average yesterday so is being removed from the Watch List. SCVL - Stock is slightly higher and a close back above $26.41 would be bullish. DELETIONS FROM THE WATCH LIST FINL is being removed from the Watch List. At your service, John Hopkins EarningsBeats