EB Watch List Update Report

Dear Members: First, I learned yesterday that Tom Bowley's father passed away. So I ask that we all keep Tom and his family in our thoughts. MARKET NOTE: It's a new day which means...? So far it means stocks are doing the opposite of yesterday with all of the major indexes higher as we get ready to close out the month of January, one the bulls will be happy to see put in the rear view mirror. This comes because of, or in spite of, Japan moving to a below zero interest rate policy. Also this morning we've gotten through the first look at Q4 GDP which wasn't great but it wasn't as bad as some thought it might be so I guess that qualifies as OK. Consumer sentiment slipped a bit but so far that is being ignored. And now traders have had a few days to absorb the most recent Fed rate announcement statement. We also had a mixed reaction to last night's earnings with AMZN getting hit hard to the downside but MSFT getting a very positive response to its numbers. So at least for today traders seem to be keying in on positive information. In fact, the VIX is down almost 7% today and a move and close back below $19.88 would be bullish. So far the S&P has cleared the most recent high of 1917 intra day but it needs to hold the early gains. The 20 day moving average is right near 1925 so that is a target for the bulls to aim for. To the downside, well, the bulls don't really want to see selling later, but if it does happen they would at least like to hold 1900. It seems like the market mood is a bit better and would like to take a shot at getting higher in the near term; clearing 1925 could lead to a move back to 1950. But now oil has retreated some on Iran's insistence it won't be cutting production and as we've all seen lately, oil has been a potent force relative to stocks. So, can the market ever de-couple from oil, or will it continue to remain hostage? Maybe we'll find out by the end of the day. KEY EARNINGS REPORTS Companies reporting earnings today (January 29) include: AAL, CVX, CL, HON, MA, PSX, STX, TZOO, TYC, WHR and XRX. Companies reporting earnings Monday (February 1) include: AET, AFL, GOOGL, APC, CAH, MAT, PFG, SOHU, SNBC, SYY and WYNN. ADDITIONS TO WATCH LISTS: We're at an interesting point at the moment. On the one hand, the bulls are hoping to make some progress here with a few things working in their favor. On the other hand we're sitting right between 1900 and 1925, a narrow range for sure. Since all we've seen lately is selling on rallies, will we see the same thing if the S&P gets up to that 1925 level which represents the 20 day moving average, a level it has not been above in a month? If so then the reward to risk at the moment is not so great. On the other hand, shorting when we're in the middle of this narrow range doesn't make sense either. Instead we're better off to hold off for the moment and see what develops and revisit on Monday. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: We are going to remain cautious and start taking profits that come along quickly. Also going to get more defensive on stops as reflected below and until there are signs that the market is improving. 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 STMP - Stock is lagging today but remains above our initial entry level. If it gets anywhere near its 20 day moving average, now at $97.69, that would be a good place to snag some profits. 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. I want to wish everyone a peaceful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins, EarningsBeats