EB Watch List Update Report

Dear Members: First, please note that Tom Bowley has posted a new blog on our site exclusively for our members that focuses on February historical performance. A MUST read! MARKET NOTE: The market is back to reacting to weakness in oil with all of the major indexes lower. The market has been held hostage to oil for quite some time now so the move higher we saw last week was a welcome sight to traders with hopes that the worst of the selling is over. While the selling this morning is not what the bulls were looking for after Friday's nice rally it has to be accepted as part of the bottoming process. We saw capitulation type selling in both oil and the overall market last week but it doesn't mean we're completely out of the woods. But I do see last week's move lower as one step toward putting in a near term bottom. Of particular interest at the moment is to see if traders start buying on dips like the one we are seeing this morning. So far the S&P is holding well above Friday's low of 1877 as well as key support near 1868. So nothing this morning showing the type of panic we've seen of late. And the VIX, though higher this morning, has also settled down relative to the higher readings of late. It wouldn't hurt if oil recovered some of the early losses or at least held the $30 level which might convince traders to turn their attention to stocks. The week itself will be chalk full of key earnings reports including Apple, the world's largest market cap company in the world, on Tuesday and will include a Fed rate announcement on Wednesday. We're also going to get the first look at Q4 GDP on Friday so a great deal of information for the market to absorb. To the upside the bulls will be aiming to clear Friday's close near 1907. A close above that level could lead to a challenge of the 20 day moving average, now near 1940. Bottom line? I still think the worst of the selling is over and any positive developments in such a negative trading environment should be a plus for stocks. KEY EARNINGS REPORTS Companies reporting earnings today (January 25) include: HAL, KMB, MCD, and ZION Companies reporting earnings tomorrow (January 26) include: MMM, AKS, AAPL, T, COF, CB, COH, GLW, DHR, DD, FCX, JNS, JNJ, LMT, NVR, PG, S, SYK and VMW ADDITIONS TO WATCH LISTS: BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List SJM - Stock is fairly flat after Friday's nice move higher. A close above $123.30 would be bullish. BSX - Stock is down by just over 1% and a close back above $17.88 would be bullish. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List STMP - Stock is giving up some of Friday's nice gains after moving higher earlier in the session. A close back above Friday's close of $97.54 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