EB Watch List Update Report

Dear Members: It's Netflix earnings day! I bring this up as large cap tech stocks, led by NFLX, have been leading the recent charge higher along with some major banks. And NFLX is one of those stocks that traders look to when trying to determine where the market might be headed. I don't mean to imply that the response to NFLX's numbers will singularly decide the fate of the market. But a positive or negative response could be contagious with other large cap stocks like Amazon, Apple, Facebook and Google getting ready to report their numbers as well over the next few weeks. Speaking of AAPL, it made a failed attempt yesterday to clear its 20 day moving average for the first time in the past 2.5 months; that's how weak it's been. I bring this up since a move back above that level - currently at $155.84 - would have to be considered a positive as well, given its large market cap and wide reaching tentacles throughout the market. Looking at the overall market the bulls are being quite stubborn with traders seeming to be ready to buy on any minor dips. But the grain of salt that continues to exist is both the Dow and S&P remain below both their 50 and 200 day moving averages; only the NASDAQ has cleared its 50 day. And though the VIX is well off of its recent high it's still higher than the bulls would like it to be as traders remain poised to move to the sidelines on any sudden deterioration. The market really has moved too much off the recent bottom to get aggressive on the long side. On the other hand, and as we have seen, shorting is tough in this environment as well. So waiting for some more earnings results to see how the market responds seems to make a lot of sense here, staring with NFLX after the bell. Companies reporting earnings today (January 17) Before Market Opens: BB&T, FAST, KEY, MTB, MTG, MS and TSM After Market Closes AXP, JBHT, NFLX and PRGS Companies reporting earnings tomorrow (January 18) Before Market Opens: KSU, SLB, STT and STI 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: ERF - Stock is lower by 1.3% as it starts to show minor signs of deterioration. 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