EB Watch List Update Report

Dear Members: Market Update: First, as a reminder, the market will be closed for President's day on Monday. So my next Update will be next Tuesday. If it seems like the market has recovered off the recent bottom too quickly it's because it probably has. Since the February 9 low on the S&P of 2532 it's been straight up. The good news for the bulls is the S&P is now back above all key technical levels, as though whatever led to the recent heavy selling is no longer a concern. The VIX is down by almost 6% today, another plus for the bulls. But it's not hanging out in the 9's like it did for a long time for many months. It's still in the 18 range which should be respected; selling could resume out of nowhere. In looking at the S&P, and assuming it holds its 20/50 day moving averages, both in the range of 2725, the next key level of resistance is just above 2760. Should the S&P fall back below those key technical levels then the next key level of support will be close to 2650. So from purely a reward to risk perspective there's more downside than upside potential at the moment. Thus I don't see any great need to get aggressively long here. Instead it makes much more sense to let things play out here and revisit if we get back to levels that could present better opportunities. Companies reporting earnings Today (February 16) Before Market Opens BCPB, KO, DE, DTE, ITT, KHC, NWL, R and SJM After Market Closes: None Companies reporting earnings Tuesday (February 20) Before Market Opens: CHH, LODE, CTB, DPZ, DUK, EXPD, FDP, GCI, HLX, HSIC, HD, IHG, MDT, MGM, SIX, and WMT After Market Closes: BYD, DVN, FLR, LZB, LC, PSA, RCII and RIG ADDITIONS TO WATCH LIST Will keep you posted if are any new additions to the Watch List BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List VAR - Stock is up slightly with our target at $124.75. Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats