EB Watch List Update Report

Dear Members: Market Update: So what's different between today and yesterday? The VIX is down 11% as traders' nerves seem to have steadied some. But so far the S&P remains below levels of the past two trading days. In other words, so far the market has stalled. The S&P is back above both its 20 and 50 day moving averages which is a plus. But they were over those levels yesterday before the late day selling. So the move today is welcomed by the bulls but they know they will need to hold all of the early gains plus add on if they hope to move stocks higher. I studied the S&P further and this is what I'm seeing. Should the buying pick up I think there will be a lot of resistance just above 2760 which is about 25 points above today's high. On the other hand if the market was to stall and ultimately revisit the most recent lows that would result in 200 points being shaved off of the S&P. I'm not predicting that will happen but it's not out of the question; corrections often see a revisit of prior lows after a significant bounce. Whether or not this turns out to be the case is not the point. The point is at current levels there is about an 8 to 1 reward to risk to the downside. As usual what might actually take place might be in the middle; there could be some support in the 2650 level. If that turned out to be the case then we'd be looking at something closer to 3.5 to 1. But I don't like either of those scenarios if I'm long stocks or especially if I'm taking on new positions. In what I would consider to be the "best case" scenario in the near term would be a revisit of the 2800 level on the S&P. That would at least provide some room for trades to develop. So the first thing I'll be looking for is how the market closes today; can the bulls hold the early gains or will we see a repeat of yesterday? We're going to get FOMC minutes later today so that might impact trading. So for now I suggest we hold the line, see how things look as the day progresses and go from there. Companies reporting earnings Today (February 21) Before Market Opens LNG, DISH, DX, GRMN, MDR, OC, SO and WWW After Market Closes: Y, CAR, SAM, CAKE, CLR, HST, TILE, JACK, KALU, P, ROKU, STMP, SUN, SNPS and WEN Companies reporting earnings Tuesday (February 22) Before Market Opens: CHK, CVEO, HRL, IDCC, NEM, NCLH, SAGE, SSTK, TNC, TTC, VC, W and ZBRA After Market Closes: AGO, BMRN, EIX, FSLR, GDDY, HLF, HPE, HPQ, INTU, PLNT and RDFN ADDITIONS TO WATCH LIST Going to keep an eye out for high reward to risk trading candidates but be extremely picky at the moment. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats