EB Watch List Update Report

Dear Members: We're seeing some profit taking this morning which makes complete sense given the strong oversold bounce we've seen the past few sessions. Even with the early selling we're seeing for the first time in a while some buying on dips with the bulls feeling more confident now that all of the major indexes have moved back above their respective 20 day moving averages. The VIX has settled down some as its moved back below both its 50 and 20 day moving averages as trader confidence has grown some. Now the question on everyone's mind is; has the market hit a near term bottom and is there more upside potential here or will traders start booking profits, worried that the selling might resume? It's worth noting that the next level of resistance on the S&P is at 2585; it almost touched 2580 before selling kicked in. To the downside the bulls are going to want to protect 2540, the current 20 day moving average, as a close back below that level would most certainly favor the bears. With the recent volatility the market has experienced one would think there's no "in-between" here. But, maybe that's what the market needs for a while rather than wild swings. We will see earnings reports start to come out in droves beginning next week. Perhaps traders are willing to take a wait and see attitude before making any big decisions. In the meantime we should watch to see if the 20 day does hold on any selling or if the bulls can convince traders to stick with them as they try to add on to the recent gains. Companies reporting earnings today (January 8) Before Market Opens: None After Market Closes None Companies reporting earnings tomorrow (January 9) Before Market Opens: AYI, STZ and LEN After Market Closes: BBBY and KBH ADDITIONS TO WATCH Will keep you posted on any additions to the Watch List BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: XPO - We had XPO out as a short with a cover price of $60. It cleared that level this morning so will be removed from the Watch List. LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats