EB Watch List Update Report

Dear Members: Credit the banks for helping keeping the rally going, especially Goldman Sachs and Bank of America, both up by over 7%, complimenting the strong showing by other financial institutions the past few days. It's also helping that the NASDAQ is back above its 50 day moving average for the first time since early October with one minor exception in early December when it was back above that level for a day before the market began its slide. The bid underneath the market remains strong with traders taking notice on any dips with the bulls showing strength each time it looks like the selling might stick. The move higher seems to indicate traders are feeling more confident about upcoming earnings with the strong showing by the banks helping to substantiate their thinking. But we still need to keep in mind that both the Dow and S&P remain below their respective 50 day moving averages with all of the major indexes still well below last year's all time highs. We'll get another batch of earnings over the next few days including Alcoa after the bell tonight and American Express and Netflix tomorrow which will provide traders with more clues. Netflix still remains important and their results and market response could set the tone for the near term. 2628 on the S&P is now a key level to watch. It represents the 50 day on the S&P and a move and close above that level could give the bulls more to work with. On the flip side should it stall there the bears will argue that the recent buying has been overdone. It is rare for the market to fall sharply like it did the first three weeks in December and then go straight up without some type of correction. But if earnings come out stronger than expected there could be more room to run to the upside. However any signs of weakness on the overall earnings front could put a quick halt to the rally. We might have a better sense of things by week's end. Companies reporting earnings today (January 16) Before Market Opens: BAC, BK, BLK,CMA, GS, PNC and USB After Market Closes AA, CSX and KMI Companies reporting earnings tomorrow (January 17) Before Market Opens: BB&T, FAST, KEY, MTB, MTG, MS and TSM After Market Closes: AXP, JBHT, NFLX and PRGS ADDITIONS TO WATCH 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 higher earlier in the session. Still need to see a close back below the 50 day, moving average, currently at $8.90, if the stock is going to move lower. 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