EB Watch List Update Report

Dear Members: Market Update: Apple set the tone for early trading as it pre-announced it would miss earnings expectations with all of the major indexes lower in spite of a much better than expected ADP jobs report that came out ahead of tomorrow's monthly non-payroll report. The move lower today comes a day after early selling followed by a nice recovery which the bulls are hoping to see again today. The VIX, which had fallen nicely yesterday is up over 10% today as it clears all key technical levels. In other words the calmed nerves of yesterday are frayed nerves today. The bulls have to be wondering when the assault on stocks might end but when you get negative earnings news from one of the largest companies in the world, traders listen. And this warning is coming just two weeks before earnings season kicks in and when thousands of companies are set to report. So are there any silver linings here? Maybe. First, so far the S&P has remained well above its recent low. Next, now that AAPL has confessed it will miss its numbers it is no longer a surprise. Also, that ADP jobs report this morning was strong, maybe foretelling a strong government report tomorrow. Still we need to respect the fact that all of the major indexes remain technically challenged and that's not going to change unless we see a move back above the 20 day moving average on the S&P, currently at 2539. The S&P did get as high as 2520 two of the past three sessions but so far failed to break through. Will the third time be a charm? Maybe, but for now we still need to remain very selective. Companies reporting earnings today (January 3) Before Market Opens: UNF After Market Closes None Companies reporting earnings tomorrow (January 4) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH We issued an update on XPO, our short alert from yesterday, with the stop changed to $55.50 to help insure profits in this volatile market. It cleared that level so will be removed from the Watch List. Will keep you posted on any additions to the Watch List BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: XPO - Being removed from the Watch List with a nifty 4.2% gain in one day. LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List XPO At your service, John Hopkins EarningsBeats