EB Watch List Update Report

Dear Members: First, please note that I have added a new Behavior Modification Case Study that you can find under my Blog on the site. MARKET NOTE: It's a fairly quiet start to the new trading day and week with only the NASDAQ up slightly at the moment. There wasn't any glaring news over the weekend to excite or upset the market with some mixed economic reports coming out of China. Morgan Stanley is on the receiving end of investor dissatisfaction this morning on its earnings report with the stock down almost 6%. It goes to show you that you need to have solid numbers in this environment if you hope to get a boost in share price. Though the Dow and S&P are down slightly, all of the major indexes start the week above their respective 20 and 50 day moving averages. In fact the NASDAQ looks like it wants to challenge its 200 day moving average, a level it has not been able to close above since August 19. It's also potentially developing a positive technical pattern with the 20 day moving average trying to cross back above the 50 day which would be bullish. In fact the 20 day is back above the 50 day on both the S&P and Dow, so two out of the three major indexes are already showing some technical improvement. Since the August 24 flash crash, the VIX has fallen substantially from a high just above 50 to its current price beneath 16. So clearly much less nervousness now than we saw almost two months ago. The next key level of resistance on the S&P is up near 2060. To the downside the bulls would like to hold the line at 2000 on renewed selling. KEY EARNINGS REPORTS Earnings season continues to heat up with tons of stocks set to report their numbers over the next few weeks. Companies reporting earnings today (October 19) include: BRCM, BRO, CE, CCK, FLEX, HAL, HAS, IEX, IBM, LII, MTB, MS, SIX, STLD and ZION Companies reporting earnings tomorrow (October 20) include: ACE, BK, CP.TO, CMG, CB, DFS, DOV, FITB, HOG, ILMN, ISRG, LMT, NVR, TRV, UTX, VZ, VMW and YHOO ADDITIONS TO WATCH LISTS: First, please note we have added 25 new stocks to our Candidate Tracker, all that have beaten earnings expectations. We've also removed some that have earnings reports coming up soon. We're also likely to add quite a few more over the course of the next few weeks as earnings season progressed. Remember that a lot of stocks that beat earnings expectations make strong moves once they've reported and we don't want to chase moves higher. It makes more sense to let stocks settle down and come back to even better entry levels. We will be watching carefully over this week and next week to see which ones present a high reward to risk opportunity to our members and will notify you of new additions to the Watch List. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List There are no large cap stocks on the Watch List at this time Mid Cap Watch List There are no mid cap stocks on the Watch List at this time Small Cap Watch List VRA - Stock is flat today and a close above $13.15 would be bullish. DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. At your service, John Hopkins, EarningsBeats