EB Watch List Update Report

Dear Members: First, here is a link to Monday's Quarterly Earnings Webinar. Highly educational! https://www.earningsbeats.com/members/Q4-2018-Quarterly-Earnings-Update.cfm. Market Update The bulls want to believe the worst of the selling is over but it's going to take a lot of convincing before traders go aggressively long in this weak market environment. All of the major indexes are green this morning but yesterday's selling remains fresh on the mind of traders who wonder if the early gains can hold. We saw some very strong earnings reports from MSFT, TSLA, F, V and WHR, all exceeding expectations with the bulls hoping there will be a lot more positive reports to follow.The bulls are working from a distinct disadvantage at the moment with all of the major indexes well below all key technical levels and with the VIX, though lower today, showing continued, heightened fear, making it difficult for traders to hit the buy button. Some good news though; the deeper the selling the better the opportunities will become. And since there's no telling if today's gains will hold we need to continue to be selective and keep very tight stops; we saw how quickly NFLX fell when it broke our stop of $110 yesterday though it is trying to get back on track today; all benefit of the doubt right now goes to the bears. And when a cult stock like NFLX struggles to gain traction after being beaten down after an earnings beat, that doesn't bode so well for the rest of the market. The big problem now is even those stocks that are extremely oversold and near key support are having a tough time getting a bid and those that do are having a hard time holding gains with traders hoping to get stocks even cheaper. It's entirely possible that some point soon traders will notice in unison how beaten down many stocks are. Worth noting is both Alphabet (GOOGL) and Amazon (AMZN) report their earnings after the bell tonight and their respective results and the collective response from traders could impact the near term direction of the market. Bottom Line: until something happens that shifts the momentum to the bulls we need to proceed with caution. Companies reporting earnings today (October 25) Before Market Opens: ALLY, MO, AAL, BUD, BANC, BWA, BMY, BC, CELG, CME, CMCSA, COP, CSTM, DNKN, GWB, GRUB, HSY, IMAX, IP, IRM, LEA, MMC, MCK, MRK, NEM, NLSN, NOK, PAG, POS, RTN, RS, RCL, SHW, SHOP, LUV, TROW, TSCO, TWTR, UNP, VLO, VC, WM and WWE After Market Closes AKS, GOOGL, AMZN, SAM, BYD, BGG, CERN, CMG, COLM, CUBE, CY, DECK, DFS, EXPE, FSLR, FLEX, FBHS, GILD, INTC, LSCC, MSTR, MHK, NTGR, PFG, SNAP, SYK, TESS, UHS, VRSN, WDC and AUY Companies reporting earnings tomorrow (October 26) Before Market Opens: CL, GT, MCO, PSX, PJC, ROP, R, TEN and WY After Market Closes: None ADDITIONS TO WATCH We added NFLX, CBT and AKTR to the Watch List yesterday with NFLX and CBT stopping out yesterday and ATKR this morning, all with minor losses. We will keep you posted on any additions to the Watch List. We are going to continue be very picky here. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List AEO - Stock is higher by 1.3% as it tried to clear yesterday's high of $22.66 before pulling back some. If it could close above that level it would be bullish. It looks like the stock could run into resistance near $23 so we will keep that in mind. Small Cap Watch List SCVL - We issued a profit alert on this stock yesterday, a nice 9% gain from the original entry level so it is being removed from the Watch List. Great trade!. EXPR - Stock is higher by over 2% but right near our original entry. It's got no chance of advancing higher unless it clears its 200 day moving average, currently at $8.79. Deletions from Watch List SCVL and ATKR At your service, John Hopkins EarningsBeats