EB Watch List Update Report

Dear Members: Market Update The bulls were hoping to add on to yesterday's solid gains, especially with Netflix's surprise earnings beat after the bell but on the flip side IBM disappointed with the stock down almost 7% and putting pressure on the overall market. A few things today show the selling could be contained. First, all of the major indexes are well above their respective 200 day moving averages. Next, we're seeing higher lows all the way around. Next, the VIX is well off the high of the session and now up only 4%. Though these should be considered positive signs we need to keep in mind that all of the major indexes remain technically wounded; it's better to be back above the respective 200 day moving averages but the technical damage of late remains. It is encouraging to see that traders are willing to reward those companies that do beat expectations and there's nothing wrong with punishing those who come up short. But it could take another few weeks of numbers for traders to decide if they favor the long or short side. The S&P got as low as 2781 today before bouncing so we should keep an eye on that number with 2766, the 200 day, not that far below. On the flip side, if we can see some strength into the close, that would be bullish. Companies reporting earnings today (October 17) Before Market Opens: ABT, M&T, MTG, UNF, USB and WGO After Market Closes AA, BXS, KALU, KMI, STLD and URI Companies reporting earnings tomorrow (October 18) Before Market Opens: BK, BBT, BX, DHR, ERIC, GPC, KEY, NVS, NUE, PM, PPG, SAP, SNAP, SON, TSM, TXT AND TRV After Market Closes: AXP, ETFC, ISRG, PYPL AND SKX ADDITIONS TO WATCH We will keep you posted on any additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List SPLK - stock is down 1% but off the low of the day. A close back above $105.91 would be bullish. Mid Cap Watch List CLDR - Stock is down by 1.5% and a close above $16 would be bullish. AEO - Stock has worked its way back to our initial entry price of $21.12 and as a reminder there is a second entry on any pullback to $20.50 though we would prefer a reversal to the upside rather than more selling. Small Cap Watch List SCVL - Stock pulled back exactly to our initial entry price of $37.33 before bouncing back above all key technical levels. Would like to see it strengthen as the day proceeds. EXPR - Stock is lower by over 2% after failing to clear its 200 day, currently at $8.80, for a second day in a row. It really needs to close above that level to make further progress. Deletions from Watch List None At your service, John Hopkins EarningsBeats