EB Watch List Update Report

Dear Members, First, a reminder that I will be holding a special webinar today at 4:30 PM eastern to discuss the best way to use the Earnings Beats site. You will be sent room instructions later this afternoon prior to the event. MARKET NOTE: The bulls are pleased with the positive start to the new trading week. They also like the fact that traders are adding positions after Friday's gains. Factory orders hit their highest level in 8 months, so that's helping. Government bond rates are fairly flat after moving up nicely last week but still remain at historically levels. Perhaps we'll see some hedging prior to Friday's important non-farm payroll report. The VIX is up slightly but also remains on the historically low end of the spectrum showing trader confidence is just fine right now. And the S&P got to within 6 points of its all time high earlier in the session so a strong close might give the shorts something to think about. ADDITIONS TO WATCH LISTS: There are no additions to the Watch List today but we've got a sizable number of stocks on our Candidate Tracker list that we will be monitoring. We also removed some stocks and added some more to the Candidate Tracker list depending on their status relative to earnings dates and will provide additional information as we fine tune the process. Here's something else worth noting. Historically May 5 to May 25 is one of the rockiest periods of the year. So we want to at least be mindful of this fact and tread more on the lighter side than be overly aggressive. Note also we are removing 4 stocks from the Watch List today as shown below as they are about to report earnings and we do not like to hold stocks into their earnings reports. Just don't like the risk factor of the unknown. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List HRS - Stock is reporting earnings today and is up $8 from where we first added so is BEING REMOVED FROM THE WATCH LIST. GREAT TRADE! MKC - Continues its bounce off of the 50 day test. Close above the 20 day, currently at $76.22, would be bullish. DATA - Stock is up $6 from original entry and Reports earnings on 5-7 so is BEING REMOVED FROM THE WATCH LIST. GREAT TRADE! PCLN - Stock is up over $12 today and at the high of the session was only 2% from our target. They report earnings on 5-7 so we ARE REMOVING FROM OUR WATCH LIST. GREAT TRADE! URBN - Short term resistance is near $42 and a close above that level would be bullish Mid Cap Watch List GOGO - Stock is reporting on 5-7 and is currently about 8% above initial entry so is BEING REMOVED FROM THE WATCH LIST. GREAT TRADE! RH - Bouncing off its 200 day moving average with short term resistance slightly above $90 and a close above that level would be bullish Small Cap Watch List No comments on small cap stocks today DELETIONS FROM OUR WATCH LISTS: We are removing HRS, DATA, PCLN and GOGO from the Watch List. There are no other deletions unless a Watch List stock hits its stop loss. At your service, John Hopkins, Earnings Beats