EB Watch List Update Report

Dear Members: Market Update: I think I can say with a fairly high level of confidence that the weakness we are seeing today has as much to do with options expiration than just about anything else. This can be seen in looking at both the SPY and QQQ's where market makers are wiping out a lot of premium on those options that expire tomorrow. I can see it as well in individual stocks. One of our alerts, SNAP, is a prime example where there are a lot of puts at a $15 strike price expiring tomorrow as well as a large number of calls at that level. This is nothing new. When the third Friday of each month gets closer there's a lot of jockeying going on to wipe out as much options premium as possible. Accordingly, nothing I'm seeing today in the overall market is overly concerning, at least not yet. In fact we saw a nice response to a few earnings reports after the bell yesterday including Alcoa and American Express, both up sharply. And traders have are likely to continue to reward those companies that report solid numbers, especially if they reaffirm or raise forward guidance. On the flip side, if a company disappoints they are likely to pay the price. So far the S&P has held its 50 day moving average, currently at 2687 which is now support. If that goes then we could see a retest of the 20 day, currently at 2669. To the upside resistance is now at 2717, yesterday's high., and if that level is cleared, 2741 is next. Companies reporting earnings Today (April 19) Before Market Opens: BK, BBT, BX, DHR, GWW, KEY, NVS, NUE, NVR, PM, PPG, DGX, SNA, and TSM After Market Closes: ETFC and SKX Companies reporting earnings tomorrow (April 20) Before Market Opens: BHGE, ERIC, GE, GNTX, HON, KSU, MAN, PG, ROP, SLB, SWK, STT, SHOO, STI, TRU and WM After Market Closes: None ADDITIONS TO WATCH LIST We added GPS to the Watch List this morning with additional information below BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List LEN - Stock is down over 4% and hit our Intra Day stop of $55.45 so is being removed from the Watch List. SNAP - Stock is higher by almost 2%. A close back above the 20 day moving average, currently at $15.17, would be very bullish. GPS - Stock was added to the Watch List this morning at an entry price of $29.36 with a price target of $31.80 and a stop of any INTRA DAY move below $29.00 so could stop out quickly. Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List LEN At your service, John Hopkins EarningsBeats