EB Watch List Update Report

Dear Members: Market Update: One thing standing out today is the VIX which is up by 15% as we begin a new trading day and week. This move higher coincides with something I brought up late last week; that the 20 day moving average was getting ready to cross the 200 day on the VIX for the first time in many months. That's what happened and I'm now keeping an eye on the VIX with the most recent high being 12.81, as a move above that level could take it much higher. This move lower in the market today comes before some major events this week including the State of the Union speech tomorrow, a Fed rate announcement on Wednesday and earnings reports from Amazon, Apple, Facebook and Google on Thursday. Of these 4 tech giants only AAPL is actually near oversold territory. On the other hand, AMZN, which is at an all time high, has stochastics near 100 and a RSI over 90. There are other stocks like that as well, NFLX for example, which is at an extreme overbought level like AMZN. I want to point out that stocks with stochastics near 100 and RSI's over 90 are RARE. Also rare; the major indexes at lofty level like they are now with no relief for an extended period of time. This is why we're seeing the VIX rise today; traders know that what they are seeing is highly unusual. I'll be particularly interested in how the market closes today. Will the bulls get another kick save? Or will traders finally move in unison to the sidelines? The next level of support on the S&P is 2846 so that's a level to keep an eye on. Companies reporting earnings Today (January 29) Before Market Opens D, LMT, STX and SOHU After Market Closes: CR, IDTI, JJSF, PFG and RMBS Companies reporting earnings tomorrow (January 30) Before Market Opens: AET, AKS, ALLY, CIT, GLW, DHR, DOV, HOG, HRS, HCA, HUBB, MCD, NUE, PCAR, PFE, PII, PHM, SAP and TROW After Market Closes: AMD, ALGN, BXP, CHRW, CB, ILMN, JNPR, KNX, RHI, SFLY, and SYK ADDITIONS TO WATCH LIST Though I am very inclined to remain cautious here I will let members know if I spot a high R/R trading candidate that might make sense in the current environment. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List QSR - Stock is down 1.2%. As a reminder, our stop is any close below the 200 day moving average, currently at $61.59. If it closes below that level it will be removed from the Watch List. Mid Cap Watch List None Small Cap Watch List None DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats