EB Watch List Update Report

Dear Members: First, we had an very successful Quarterly Earnings webinar last night and will make sure all members receive a recording of the event sometime today. Market Update The buyers strike continues this morning with all of the major indexes substantially lower. Some highly visible companies reported their earnings this morning including Caterpillar and 3M, down 8% and 6%, respectively, with traders remaining very defensive. The VIX, though off the high of the session, is still up over 20% as volatility rules. The Dow has now joined the NASDAQ and S&P in being back below all key technical levels, another blow to the bulls. And the S&P has now moved back to its June 28 low, a level the bulls do not want to lose. Many stocks continue to be very oversold and at this exact moment in time traders don't seem to care. With stocks like CAT and MMM missing earnings traders are leery to put their capital to work on the long side. On a positive note McDonald's beat earnings expectations with the stock higher by 5%. So those companies that do come through can still be rewarded. Should the selling pick up as the day progresses we should keep an eye on 2674, the May 9 low on the S&P. If that goes then we could see even more selling. To the upside the S&P will need to climb back above its 200 day moving average, currently at 2768, if the bulls hope to have any chance of regaining the momentum. In the meantime it's best to let this play out and revisit if something develops that shows the worst of the selling is over. Companies reporting earnings today (October 23) Before Market Opens: MMM, ARCH, BIIB, CAT, CIT, GLW, FITB, HOG, HBAN, JBLU, LMT, MBFI, MCD, PHM, DGX, SNV, TRU, UTX and VZ After Market Closes AMP, COF, CSL, CB, ILMN, IRBT, JNPR, LRN, NAVI, RHI, SIX, TER, TXN and UMBF Companies reporting earnings tomorrow (October 24) Before Market Opens: ALXN, T, AVX, BKU, BA, BSX, BCO, CHKP, DB, DTE, EVR, GD, GRA, HLT, ITW, IR, NDAQ, NSC, NOC, OC, ROL, SCHN, SLAB, SIRI, TDY, TNC, TZOO, TUP and UPS After Market Closes: AMD, AFL, ALGN, ABX, CTXS, CLB, CLGX, DLB, DRE, EFX, ETH, FFIV, F, FORR, GG, KNX, KN, LVS, LM, MSFT, MORN, NGD, RLF, NOW, VRTX, V, WHR and XLNX ADDITIONS TO WATCH First, please note that we will be sending the Chart List out to members who have requested sometime today. 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 None Mid Cap Watch List AEO - Stock is down by 3.5%, right back to our original entry price with a second entry price on any pullback to $20.50. Small Cap Watch List SCVL - Stock is lower by 2.6% as it tries to hold above all key technical levels and a close back above $39.13 would be bullish. EXPR - Stock is down by almost 5% as it gives in like many other stocks today. As a reminder our stop is any CLOSE below $8.22. If it closes below that level it will be removed from the Watch List. Deletions from Watch List None At your service, John Hopkins EarningsBeats