EB Watch List Update Report

Dear Members: First, please note that I have added a Behavior Modification Case Study on my blog which is now available to all members. MARKET NOTE: January went out on a positive note while today we are beginning a new month with all of the major indexes lower though well off their respective session lows. There's no specific reason for the selling this morning, perhaps some profit taking after Friday's nice gains. Oil is lower so that's probably not helping and economic reports from this morning weren't so great either. But so far the selling isn't deep, certainly nothing like we saw on many days during January. In fact, so far the S&P is holding its 20 day moving average after falling below earlier in the session. So you can see the bulls aren't giving up as easily today. Right now the bulls are trying to prove that traders have shifted to a buy on the dips strategy rather than selling into strength. It's too early to confirm that thinking but for sure there is more interest on the buy side than there was for most of January. The next key level of resistance on the S&P will be up near 1950. To the downside the bulls really don't want to see the S&P back below 1900; been there, done that. But there are still plenty of skeptics out there, and for good reason. The GDP report from Friday confirmed the economy is limping along and technically, all of the major indexes remain challenged, with the S&P struggling to remain above its 20 day moving average, let alone challenge the 50 and 200 day moving averages which at the moment seem miles away. So on the one hand, it's positive that traders have begun taking on long positions, but it's coming with one finger on the sell button in case anything comes up out of the blue that spooks the market again. KEY EARNINGS REPORTS Companies reporting earnings today (February 1) include: AET, AFL, GOOGL, APC, CAH, MAT, PFG, SOHU, SNBC, SYY and WYNN. Companies reporting earnings Monday (February 2) include: ADT, AFFX, ALLY, ADM, ATML, BAX, CMG, CIT, DOW, XOM, FISV, GILD, HRS, ILMN, GMCR, LAZ, KORS, PFE, PBI, RCL, R, SIRI, UPS and YHOO. ADDITIONS TO WATCH LISTS: This is one of the busiest earnings weeks of the quarter. And it's coming as the market is trying to regain its footing after getting bashed in January. So far it's been a mixed picture but good enough to help offset some of the other headwinds the market is currently facing. As the earnings season picks up steam we will be adding both long and short trading candidates to our Candidate Tracker. Thus with a fresh batch of trading candidates on the very near horizon we will hold off adding any new stocks to the Watch List as we continue to examine if a bottom has been put in and where stocks might stall. 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 has made a nice reversal off of today's low and we continue to target the 20 day moving average, now at $97.37 as a level to consider taking 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. At your service, John Hopkins, EarningsBeats