EB Watch List Update Report

Dear Members: MARKET NOTE: The oversold market is now oversold by another day with all of the major indexes substantially lower. There's been downward pressure right from the get go with both the NASDAQ and S&P hitting key levels of support. We're in one of those periods where good news is bad news and bad news is bad news. For example, to the average consumer, declining oil prices = lower gas prices, so more money in the pocket, which in turn could help boost the economy. To the market lower oil spells further trouble. The VIX is up 15% as it has touched 30 today which shows an increased level of fear. In the meantime treasury notes have fallen with the ten year now yielding 1.96% as investors flee to safety. Positive earnings from some companies don't seem to matter much at the moment. This includes strong numbers from companies like General Motors, JP Morgan and Netflix, only to see their shares decline. So to say the mood is negative would be the understatement of the year! But it does lead to the question; is what we are seeing before our eyes overdone? Or is there yet another leg lower? Clearly all of the major indexes are extremely oversold as are many stocks. For example, we know that stochastics have a range of 0-100 with 0 being extremely oversold and 100 being extremely overbought. And we know that RSI readings of 70 indicate overbought while readings of 30 or less indicate oversold. And the longer these indicators remain overbought or oversold, the closer they are to topping or bottoming. But traders seem to be ignoring time tested lessons in favor of protecting capital which is completely understandable. We're doing the same thing. But that could change sometime soon, especially if we see signs of a bottom at some point in the very near future. And for those who are thinking about nibbling and willing to take on additional risk we've recently added some new stocks to our Candidate Tracker, companies that recently beat earnings forecasts and could start to outperform once the worst of the selling is over. And maybe, just maybe, once the dark cloud over the market is lifted, strong earnings just might start being rewarded like they should be. KEY EARNINGS REPORTS Companies reporting earnings today (January 20) include: FFIV, FCS, GS, KMI, NTRS, RJF, SLM, AMTD and XLNX Companies reporting earnings tomorrow (January 21) include: AXP, BK, BBT, CP.TO, ETFC, FITB, HBAN, KEY, MTG, SLB, LUV, SBUX, TRV, UNP, UAL and VZ ADDITIONS TO WATCH LISTS: As mentioned above, we just added some new stocks to the Candidate Tracker. We expect to add quite a few more over the next few weeks and will keep you posted. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Only one stock remain on the Watch List. Large Cap Watch List BSX - As a reminder, out second entry on this stock is at $16.82 Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. 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