EB Watch List Update Report

Dear Members: MARKET NOTE: The selling of late is continuing into today with all of the major indexes lower at some point this morning. This selling comes with all of the major indexes at extreme oversold levels, all the way around. In fact we are seeing stochastics near zero and RSIs below 30 on the Dow, NASDAQ, S&P and Russell 2000. It's gotten to the point to where the reward to risk is massively to the upside here, even though it doesn't feel like it and it wouldn't surprise me one bit if we soon see a major move to the upside today or tomorrow. It doesn't mean the market can't remain oversold for an extended period but remember that stochastics can't go any lower than zero. We've also got oil one day closer to touching $30 a barrel. There is also a huge imbalance of puts to calls on both the SPY and the QQQ's meaning everyone is betting against the market prior to options expiration this Friday. To me that is a contrarian indicator. So far the S&P has held well above the August 24 flash crash levels as well as the October 1 low of 1900. If 1900 holds the worst of the selling in the near term could be over. To the upside the bulls have a lot of work to do but a start would be a close back above last Thursday's close of 1943. One last thing; the Chines market got crushed last night and so far the US market has mostly ignored which is different from what we have seen lately. KEY EARNINGS REPORTS Companies reporting earnings today (January 11) include: CSX Companies reporting earnings tomorrow (January 12) include: AA ADDITIONS TO WATCH LISTS: With earnings season about to begin with Alcoa reporting this evening we're going to hold off on any additions at the time. But over the next few weeks thousands of companies will be reporting their numbers which will allow us to load up our Candidate Tracker and look for fresh trading candidates that have strong earnings and strong charts and have held up the best during the recent market turmoil. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Please note that there was not a full EB Watch List Update on Friday but that a few of the Watch List stocks closed below stop levels between Thursday's close and Friday so have been removed from the Watch list including FB, MPWR and AMKR. We never like to see stocks hit the stop loss level but it becomes especially important to honor them when the market is struggling like it has been lately, Large Cap Watch List BSX - Stock is down slightly and needs to get back above $17.63 to get back on track. Mid Cap Watch List SBGI - Stock hit our second entry level of $30.25 on Friday and is down slightly today. It has a stop loss level of $29.50 so if it closes below that level it will be removed. Small Cap Watch List There are no Small Cap stocks on the Watch List at this time. 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