EB Watch List Update Report

Dear Members: MARKET NOTE: The Dow and the S&P are fairly flat while the NASDAQ has gotten back some of the losses from yesterday. The response to earnings this week has been mixed with the market surviving AAPL's beat down yesterday with traders now focused on the slew of earnings reports coming out today. In fact, today is the heaviest day of earnings reports so far which could play a big role in determining near term market direction. The Dow continues to be the weakest of the major indexes. I do like the fact that the 20 day on the S&P has now crossed back above the 50 day. Each time that has happened over the past year it has been bullish. But I would like to see the S&P make a nice move to the upside on strong volume; i.e., the market could use some more enthusiasm. A first start would be a close above 2130 which might stress the shorts out a bit. KEY EARNINGS REPORTS Companies reporting earnings today (July 23) include: MMM, AMZN, T, BSX, BMY, COF, CAT, CELG, CB, CMCSA, DHR, DOW, DPS, LLY, FCX, GM, JNPR, KMB, MCD, NUE, PFG, RTN, SWKS, LUV, SBUX, SYK, TROW, UA, V and WM Companies reporting earnings tomorrow (July 24) include: AAL, BIIB, DTE, JCI, MCO, STT, XRX ADDITIONS TO WATCH LISTS: There are no new additions today. We expect to be adding a lot of new stocks to our Candidate Tracker over the next few weeks and will keep you posted. We LOVE when a company reports strong earnings, gets a positive market response and then through normal profit taking and correction pulls back to desirable entry levels, creating high reward to risk trading candidates. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: We are instituting a new procedure effective today. When we indicate to members we are taking profits on a stock but leaving it on the Watch List it can be confusing. So what we will be doing going forward is removing the stock from the Watch List and if it pulls back to a level we like we will let members know and add it back to the Watch List. A perfect example is INTU where we took profits recently but left it on with the original numbers. So we are taking INTU off the Watch List but will continue to monitor and let you know if we decide to re-enter and will give you new numbers then. Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List No comments on Large Caps today Mid Cap Watch List MW - Nice recovery back over key moving averages yesterday. A close above $62.45 would be bullish. Small Cap Watch List EBIX - We lowered our closing stop on EBIX yesterday to $29.79 and it held. In fact it put in a nice hammer yesterday and the next important test to the upside will be the declining 20 day moving average, now at $31.89. TILE - Consolidating on light volume DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock hits its stop loss. At your service, John Hopkins, EarningsBeats