EB Watch List Update Report

Dear Members: First, please note that I have added a new Behavior Modification Case Study to my blog on the site. MARKET NOTE: Traders continue to analyze recent developments including a nasty end to 2015 and a nasty start to 2016 as well as weak performance in overseas markets as well. Accordingly, the market is struggling to gain its footing today with all of the major indexes in negative territory. The expectation that oil would firm up on any Middle East tension has not materialized and in fact oil has gone lower while the US dollar has strengthened. Put another way, not much for the bulls to work with these days. It's also coming at a time of year that is generally bullish so we're seeing historical tendencies not coming into play as much either. The VIX is fairly flat today so at least the escalating fear we've seen the past few sessions has subsided some. Still, the VIX remains above 20, not necessarily a lofty level but not on the low end either with traders keeping at least one finger on the sell button. All of this conspiring at once to make this a very tricky trading environment, especially since all of the major indexes remain below all key technical levels. One could argue that the selling of late was necessary but the bears will argue that it still hasn't been enough. And now a few things coming up could have a big impact on market direction including Friday's monthly non-farm payroll report and then the slew of corporate earnings coming out starting next week when Alcoa posts its numbers. And in fact it almost always comes down to the bottom line. At the moment the bulls know they must hold yesterday's low of 1989 on any selling or things could get worse. To the upside 2046 is a level they want to clear as it represents the first line of important technical levels. KEY EARNINGS REPORTS Companies reporting earnings today (January 5) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (January 6) include: MON and UNF ADDITIONS TO WATCH LISTS: Here's my thinking. The market is technically challenged here so it doesn't make sense to get aggressive here. We also know that Alcoa will report its numbers next Monday which will kick off earnings season. From that point forward and for the next 3-4 weeks, thousands of companies will report their numbers. So I think it makes sense to lay low for a bit, see if the market can find a tradeable bottom, let a bunch of companies report their numbers which will allow us to "refresh" our Candidate Tracker and look for some higher reward to risk trading candidates. So if we're patient it could pay off. If we try to chase here it could get frustrating and expensive so why take unnecessary risks? BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List BSX - Stock is up almost 1.4% and needs to close back above $18.26 to get back on track. FB - Stock is up slightly after hitting our second entry level yesterday of $102. Mid Cap Watch List MPWR - Stock is down slightly and as a reminder our second entry level is at $59.25. SBGI - Stock is fairly flat and needs to clear $32.79 to get technically healthy. Small Cap Watch List AMKR - Stock hit our second entry level of $5.95 yesterday and is up over 2% today. A close back above $6.38 would be very bullish. CALD - This stock is closed below our stop loss yesterday so has been removed from our Watch List. 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