EB Watch List Update Report

Dear Members: MARKET NOTE: Some positive action today with less worry about China and Greece with all of the major indexes higher. The bulls are working hard to hold the line at the 200 day moving average and so far are succeeding. The fear we saw the past few sessions has subsided some with the VIX down over 13% after having climbed above 20 yesterday for the first time since the beginning of February. It remains above all key technical levels so for sure traders continue to have one finger on the sell button "just in case." And all of the major indexes remain below their respective 20 and 50 day moving averages so the bears still have the upper hand here. Now we'll want to see if early gains hold into the close or if all we are getting is an oversold bounce. The S&P hit 2044 on two consecutive days earlier in the week so that is now support. But the bulls don't want to see that level again; at a minimum they want to see the S&P close above its 200 day moving average, now at 2056. They might succeed, especially with earnings season about to kick into high gear next week, as traders wait anxiously to see what the bottom line looks like for thousands of companies. Expectations seem to be quite low so any positive surprises could help turn the tide in favor of the bulls. But for now we must respect what we are seeing out there with the bears most definitely in charge at the moment. Candidate Tracker Update As we near the heart of earnings season we will be removing a number of stocks currently on the Candidate Tracker and replacing with new prospects. To summarize for members, we scan daily to identify which companies beat revenues and earnings per share. We add companies to the Candidate Tracker that exceed expectations plus also have strong charts. These stocks then become candidates for being added to our Watch List where we provide members with price entry, price target and stop loss levels. Often we'll wait to see market reaction to earnings and then pinpoint optimal entry levels which could come at any point after earnings are released. So it could be hours, days or even a few weeks before a stock that is on the Candidate Tracker makes the Watch List, if ever. We also know that some members are highly skilled at technical analysis so the Candidate Tracker list is available for those who want to scour for trades on their own on those companies that we've identified as beating earnings expectations with strong charts. Right now we've got close to 150 on the list but that will change over the next few weeks as we add and subtract and will keep you posted. ADDITIONS TO WATCH LISTS: We will continue to lay low here as as we head into the weekend and as we begin to prepare for the next few weeks as thousands of companies report their numbers. Let's remember that the bulls still have a lot of technical repair work to do here BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List MSFT - Continues to battle its declining 20 day moving average, now at $45.12. A close above that level is what we are looking for as it could carry the stock higher. RYAAY - Stock gapped up almost 5% at the open, hitting a new 52 week high, but looks like it developed a negative divergence. We are RAISING OUR CLOSING STOP to a close below $73 to help insure profits. Mid Cap Watch List GPRO - Higher today but on light volume RBA - Hit our third and final entry yesterday at $27 and this is where we look for it to turn to the upside. A close below $26.75 and it comes off. Small Cap Watch List EBIX - Earlier tried to climb above its 20 and 50 day moving averages and a close above $33.42 would be bullish MMSI - Rallying some today with $21.87 represents closing resistance DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock hits its stop loss. I want to wish everyone a restful weekend and will be back with my EB Watch List Update report on Monday. At your service, John Hopkins, EarningsBeats