EB Watch List Update Report

Dear Members: Market Update: Every since the VIX spiked higher on Monday traders have been on pins and needles, even though the VIX is well off the recent highs. This increased nervousness came right when all of the major indexes were just too technically overbought. The good news for the bulls is this is no longer the case as each of the major indexes faces a possible 20 day test for the first time since the end of last year. The other noticeable difference between now and even as last week is traders are shying away from buying on the dips, though we are seeing some nibbling today. The S&P made a new near term low this morning as it touched 2814, just under 20 points from its 20 day. This different market environment comes as earnings season has matured; many of the most highly visible companies have reported their numbers with Amazon, Apple and Google on deck tonight. Overall traders have been quite pleased with the numbers but an awful lot of positive news was already built into the market, witness the recent pullback in spite of those strong numbers. As usual we need to keep things in perspective here; it's not like the market has come tumbling down. And with AMZN and AAPL and Google on tap tonight their results and the market reaction might help determine where stocks are headed in the near term. The good news for us is that we will soon be adding a lot of companies to the Candidate Tracker and if we're lucky we'll be able to benefit from any further pullbacks. Right now we should watch to see if we get that pullback on the S&P to the 20 day moving average, currently at 2798. And if that does happen, will it hold? If it doesn't we could see some more points shaved off the market. In the meantime this remains a time to err on the side of caution until we see if the bulls are able to hold the line here...or not. Companies reporting earnings Today (February 1) Before Market Opens Will be updated tomorrow After Market Closes: The 3 stocks to keep an eye on tonight include AMZN, AAPL and GOOGL Companies reporting earnings tomorrow (February 2) Before Market Opens: AZN, CHTR, CVX, CLX, EL, XOM, HMC, JOUT, MSG, MAN, MRK, PSX, ROP, S and WY After Market Closes: None ADDITIONS TO WATCH LIST This is one of those times where it makes sense to tread very lightly. The market could resume its move higher but the behavior of late is a reminder that traders will move to the sidelines when they become more uncertain. I think it's best to wait for the big tech earnings tonight and see how the market reacts before getting more active. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List None Mid Cap Watch List BB - Stock is higher by almost 2% as it tries to clear its 20 day moving average, currently at $12.96 and a close above that level would be bullish. KBH - Stock closed below its 50 day moving average yesterday so has been removed from the Watch List. DELETIONS FROM THE WATCH LIST KBH is being removed from the Watch List None At your service, John Hopkins EarningsBeats