EB Watch List Update Report

Dear Members: Market Update: We've got an oversold bounce in progress this morning with all of the major indexes higher. Though the market is higher this morning the VIX remains elevated as traders wonder if today's gains can hold. One could argue that the heavy selling of late has presented traders with an opportunity to make some nice scores. This may be true but there's been a lot of technical damage that's taken place the past few weeks that's emboldened the bears with the big momentum shift. The good news for the bulls is the S&P tested and successfully held its 200 day moving average on the selling last week. This may prove to be enough for the moment though a retest of that level could quickly reignite worries. There certainly was a time not long ago when traders didn't think twice about buying on any dips. And more often than not it was a good strategy. Now that strategy carries with it more risk. The S&P got as high as 2655 this morning so that is now the current level of resistance and a move back above that level could signal some more upside to come. To the downside the first key level of support is now 2580. That will be an important level for the bulls to hold as a move below that level could result in a retest of that 200 day moving average, currently at 2540. I wouldn't mind a retest of that level to see if traders do put some capital to work, and if they don't it will tell us that there's more downside to come. Companies reporting earnings Today (February 12) Before Market Opens DO, FDC, HEINY and L After Market Closes: AMKR, DNB, G and LMNX Companies reporting earnings Monday (February 13) Before Market Opens: ARCH, APRN, MLM, PEP, RDCM, SINA, TRU and UA After Market Closes: BIDU, FRT, KMPR, LSCC, MET, NTWK, OXY, and WU ADDITIONS TO WATCH LIST Please note that we have updated the Candidate Tracker and added over 150 stocks. Will keep you posted if any new additions to the Watch List. Like to see if the market continues to firm up or if weakens as the day progresses. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List AXP - Stock was added to the Watch List Friday at an entry price of $88.29 and is up almost 6% from when added. The price target remains $95 but has some resistance just above $94.20 so we will keep an eye on it and let members know if there are any changes. IBM - Stock was added to the Watch List Friday at an entry price of $144.50 and is up almost 4.5% from when added. Price target is $155. Mid Cap Watch List None Small Cap Watch List None DELETIONS FROM THE WATCH LIST None At your service, John Hopkins EarningsBeats