EB Watch List Update Report

Dear Members: Market Update: It's one thing when the market is volatile when the market is trying to bottom, and especially when it is extremely overbought. It's another thing all together when the market is highly volatile when the market is potentially putting in a near term top; the bulls have had a good thing going for a long time and they don't want to give it up. We saw between yesterday and today some big swings both ways. We also saw buyers jump in once again on the selling. If you want to see a prime example of what the market might start facing as more companies report earnings then look no further than Caterpillar who reported and beat all earnings expectations this morning. The stock took off to the upside pre-market only to give up all the gains. It's well off the bottom but still shows expectations were quite high. It's only one stock but it goes to show you how much is already built into many stocks. I still believe that traders will continue to gravitate to the "best of the best" which will become even more important on any pullbacks. And stocks like CAT will end up on our Candidate Tracker where it could end up being a high reward to risk trading candidate; just not yet. I have noticed on the VIX something that hasn't happened since August of last year; the 20 day moving average is about to cross the 200 day from below after already crossing above the 50 day. When that happened in August the VIX spiked to 16. There's no way of knowing if that will happen again but if it does it's likely to spook the market some. Make no mistake about it; the bulls are going to fight hard here, and why not? They've been in charge for years now. I'm still not advocating shorting here; just too tough. But this type of whipsaw action almost always ends up hurting the pocketbook so we'll remain cautious here. Companies Reporting earnings today (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 Companies reporting earnings tomorrow (January 26) Before Market Opens: CL, GNTX, HON, LEA After Market Closes: None 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 up slightly. A close above the 50 day moving average, currently at $62.44, would be bullish. Mid Cap Watch List None Small Cap Watch List SCVL - Stock is down by 1.5% as it has fallen below its 50 day moving average intra day. PLEASE NOTE THAT WE ARE CHANGING THE STOP LOSS ON SCVL TO ANY CLOSE BELOW THE 50 DAY MOVING AVERAGE. HOWEVER IF IT MOVES BELOW $24.25 INTRA DAY IT WILL BE REMOVED FROM THE WATCH LIST. DELETIONS FROM THE WATCH LIST FINL is being removed from the Watch List. At your service, John Hopkins EarningsBeats