EB Watch List Update Report

Dear Members: First, it seems as though the room instruction notice to members about yesterday's webinar was delayed. I know I didn't get mine until well after the event had started. Sorry about that. We will have the recording available to everyone sometime today and will let you know when it is ready. It includes 15 stocks that recently beat/missed earnings expectations that at some point could set up as high R/R trades. Market Update: When the market began its descent in early December the S&P was at 2800. It proceeded to pullback over 16% when it bottomed on Christmas Eve. Since then it has been straight up but still well below that 2800 level. And now both the NASDAQ and S&P are closing in on their respective 200 day moving averages just as they move into overbought territory and as the VIX moves to a level of complacency not seen in 4 months. The "V shape" bounce off the bottom that we've seen since that December low shows a gain of over 16% on the S&P. That's a strong showing by any measure. As a matter of fact, you have to go all the way back to 2009 when the market bottomed to find a a sharper V type bounce. Once again traders are mostly ignoring a worse than expected report from Google after the bell last night, just like they ignored Amazon's poor showing last week. Instead the focus remains on good news; the bulls don't want to spoil the party. Currently the 200 day on the S&P is at 2741 while the 200 day on the NASDAQ is at 7454, both within easy striking range. So we're going to see if the bulls are able to plow through or if we'll start to see some profit taking as these key technical levels are approached. In the meantime there are still lots of earnings reports coming out this week though the REALLY important ones are now in the books. Tough level to consider going long here though shorting has been tough as well. Cash is not a bad thing to have here for when the market does finally correct. Companies reporting earnings today (February 5) Before Market Opens: ADM, BP, EMR, LAZ, PBI, RL, VIA and WCG After Market Closes ALL, APC, CERN, CB, TCS, DIS, OI, PAYC, SWKS, SNAP, SU, DATA and VRTX Companies reporting earnings tomorrow (February 6) Before Market Opens: BSX, CG, CMI, FDC, GM, GSK, HUM, LLY, NYT, BTU, SPOT and TTWO After Market Closes: CMG, FEYE, LNC, MET, PRU, RGLD, TRMB and VVV ADDITIONS TO WATCH LIST Please note that we expect to have the Candidate Tracker updated by sometime later today and will also keep you posted on any additions to the Watch List. At these levels it makes a lot of sense to patiently wait for a suitable pullback to get involved on the long side. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: OLED - Stock closed above our stop loss so is being removed from the Watch List BRKS - Stock closed above our stop loss 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 OLED and BRKS At your service, John Hopkins EarningsBeats