EB Watch List Update Report

When the market was in downward spiral mode no one wanted to touch stocks and any bounces were met with heavy selling. Now we're on the flip side where selling is being met by willing buyers with all of the major indexes making up for earlier losses with the bulls enjoying the current momentum. It does go to show you how things can change when the market goes from being technically broken to technically wounded. When all of the major indexes were below all key technical levels every benefit of the doubt went to the bear. Now that all of the major indexes are back above their respective 20 day moving averages the bulls at least have something to work with. At the same time, yesterday we saw the S&P get very close to key resistance at 2600 and the NASDAQ not far from 7000 - and close to its 50 day - before stalling with traders thinking a near term top might be in and thus today's early selling. It's worth noting that this mornings same store sales on some major retailers were quite weak but so far traders seem to be ignoring even though its tough to imagine the market making much progress if the consumer is tapped out. We're in one of those unique times where going long is risky given the 10%+ bounce off of the bottom; how much is left in the tank, especially near key resistance? On the other hand shorting is risky as well, especially with such a strong bid underneath the market. So holding onto cash is not such a bad idea. However, when looking at everything as a whole, the risk still appears to be to the downside which might be confirmed if stocks stall right near key resistance and especially with a lot of profit opportunities from the recent bounce. Maybe that will become more clear as we near the beginning of earnings season next week, and especially if we see more companies miss expectations. Companies reporting earnings today (January 10) Before Market Opens: None After Market Closes None Companies reporting earnings tomorrow (January 1) Before Market Opens: INFY After Market Closes: None ADDITIONS TO WATCH Will keep you posted on any further additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: PKI - Stock moved above our Intra Day cover price of $81 yesterday so is being 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