EB Watch List Update Report

Dear Members: Market Update: The market has gone from being extremely worried to much less worried with all of the major indexes tacking on additional gains. The S&P has moved higher the past five sessions, including the day it bottomed when it tested its 200 day moving average and when the overall market had gotten oversold. Not surprisingly, the S&P ran into resistance this morning when it touched its 20 day moving average of 2717.66 to the penny where some profit taking kicked in. What about the VIX? It's higher by a bit but so far remains below its 200 day moving average, quite a different picture from when the VIX touched 50 for one of only 3 times in history on February 6. If the S&P is able to clear that 20 day then it will next run into resistance at the 50 day which is only 5 points higher at 2722, a level it will need to close above if the bulls hope to keep the rally going. Given the nice run off of the bottom it's quite possible the market could stall here. It got oversold, bounced exactly where it needed to and now faces strong resistance. So to me the risk is more to the downside. If the bulls are able to clear both the 20 and 50 day on the S&P then the next key level of resistance will be at 2763 which will be a formidable level to clear. To the downside there should be support just below 2650 if traders decide to take profits. At this point we need to be very selective in taking on long positions. We've had some nice winners off of the recent bottom and if the market stalls here it's going to get trickier to make nice scores. Bottom line is the market looks better than it did last week but it remains technically challenged. So it makes sense to now wait for better opportunities. Companies reporting earnings Today (February 15) Before Market Opens Already reported After Market Closes: MDRX, CBS, COHU, ED, CUBE, NUS, PGRE, SHAK, SPXC and AUY Companies reporting earnings tomorrow (February 16) Before Market Opens: BCPB, KO, DE, DTE, ITT, KHC, NWL, R and SJM After Market Closes: None ADDITIONS TO WATCH LIST Please note that we sent the ChartList with new additions out yesterday. If you registered to receive the ChartList and have not yet received please let us know. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List IBM - We issued profit alert on this stock yesterday so it is off the Watch List. GREAT TRADE! SNAP - We issued profit alert on this stock yesterday so it is off the Watch List. GREAT TRADE! VAR - Stock is higher by over 1%. Next resistance is at $121.12 and if can close above that level then $124.84 next. Mid Cap Watch List None Small Cap Watch List None IBM and SNAP are off the Watch List. None At your service, John Hopkins EarningsBeats