EB Watch List Update Report

Dear Members: The battle at key resistance continues with the bears unable to inflict any serious damage while the bulls are having difficulty clearing important hurdles. Each time it looks like the bears are ready to make progress buyers step in. On the flip side, profit taking kicks in when the S&P nears 2600. This has resulted in churning where it becomes difficult to profit on longs or shorts in any meaningful way. The bears will argue that they still hold the upper hand with all of the major indexes remaining below their respective 20 and 50 day moving averages. Fair point. The bulls will argue they've had the momentum since the December 24 bottom which is also accurate. Right now it seems traders are content for the market to be where it is with earnings season about to kick into high gear starting next week when Citigroup reports its numbers Monday morning. In other words, wait and see what earnings look like before making any big decisions on either the long or the short side. In some ways this makes sense; should overall earnings beat expectations the market is poised to move higher. Should they disappoint we could see some decent selling. So the wait and see crowd might be on to something. For now we've got a pretty narrow range on the S&P of 2601 to the upside and 2550 to the downside. That's not much to work with from a trading perspective so makes sense to go easy here and into the weekend. Companies reporting earnings today (January 11) Before Market Opens: INFY After Market Closes None Companies reporting earnings Monday (January 14) Before Market Opens: C and SJR After Market Closes: None ADDITIONS TO WATCH We added ERF and RYAM to the Watch List yesterday with additional details below Will keep you posted on any further additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: ERF - Stock is down slightly after moving back below its 50 day earlier in the session. A close back below $8.80 would be bullish. RYAM - Stock is up slightly after moving back below its 50 day earlier in the session. A close back below $12.45 would be bullish. 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