EB Watch List Update Report

Dear Members: Market Update: Less than two weeks ago I was reminding members how technically overbought the market was with stochastics near 100 and RSI's in the mid 80's on all of the major indexes. Now we are seeing a much different picture with all of the major indexes now in oversold territory. As you might recall the market remained overbought for an extended period of time. Might it remain oversold for an extended period of time? Maybe. Make no mistake about it; traders were spooked on the heavy selling the past few sessions. Consider this; the VIX was 50 earlier in the session, a level last seen in August of 2015. Prior to that the VIX had not been that high since November, 2008. And in fact, the all time high on the VIX was October, 2008 when it almost touched 90. So the move to that 50 level this morning should not be ignored. Making things even more interesting? The VIX got as low as 22 this morning before bouncing to the current level just over 40. So this is most definitely volatility at its finest. Traders and analysts are trying to figure out what happened to turn things around so quickly. Sometimes there's no telling but for sure there needed to be some big time steam let out of the market which has certainly taken place. Is the market out of the woods now? I doubt it. It could take a few days to shake things out. Even then traders are likely to be more reluctant than they have been for a long time now. The bulls do have a few things going for them including a technically oversold market and traders that up until just a week or two ago were more than willing to buy on pullbacks. That could happen here with the S&P 10% off off of its all time high. But any trading at this exact moment in time brings with it greater risk so let's be very picky and remember to honor stops until things settle down some. Companies reporting earnings Today (February 6) Before Market Opens AGN, ADM, BP, CMI, DNKN, EMR, GM, LH and SAVE After Market Closes: AKAM, APC, BZH, BBOX, CERN, CMG, TCS, DIS, EXTR, GILD, JCOM, NTGR, NEU, OI and SNAP Companies reporting earnings tomorrow (February 7) Before Market Opens: BLL, BCO, CG, CTSH, HAIN, HAS, HUM, ICE, JLL, KORS, BTU, RDWR, RIO and WD After Market Closes: ALL, FISV, FORM, FORR, IAC, INFN, MFC, NTES, PRU, RSYS, RDWR, RNWK, RGLD, SU, SYNA, TTWO, TARO, TSLA, FOX, VVV, YELP and ZNGA ADDITIONS TO WATCH LIST Going to keep a close eye on the market and will let members know if any new additions to the Watch List. Also we will be adding a lot of stocks to the Candidate Tracker in the near future and will keep you posted. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List IBM - Stock moved below its INTRA DAY stop loss of $156 so was removed from the Watch List. It was re-added as an alert at $153.73 with a stop of any INTRA DAY move below $150 which hit this morning so IBM is coming off the Watch List. Mid Cap Watch List None Small Cap Watch List None DELETIONS FROM THE WATCH LIST IBM is being removed from the Watch List At your service, John Hopkins EarningsBeats