EB Watch List Update Watch List Report

Dear Members: MARKET NOTE: If you've ever wondered what a bear market looks like after many years of bull market behavior you are witnessing it firsthand once again today with all of the major indexes lower. The NASDAQ in particular is under pressure after a weaker than expected jobs report with high profile stock LinkedIn down 40% after an earnings warning. Yes, you read that right. Then there's much loved Amazon, down another 5% today and over 27% since its most recent high. Then there's Google which soared on its recent earnings as it eclipsed Apple as the largest market cap company in the world. But that didn't last long with the stock down almost 12% in 3 trading days. This isn't the type of behavior traders have come to expect over the past 7 years since the market bottomed and shows the headwinds now being faced day after day. What makes it even more insidious is the market isn't collapsing. Sure, stocks have fallen since the beginning of the year but the S&P is well off of its recent low; it's more akin to water torture where one days gains turn into the next day's losses. And it's happening in spite of (or because of) extremely low oil prices, historically low interest rates and an unemployment rate of 4.9% and increasing wages. All of the things you would think might propel the market higher. None of this seems to matter right now. SO...we need to deal with what the market is serving up right now which is mostly pain! It's certainly a major reason we have been hesitant to offer up many trading candidates at the moment and why we took profits so quickly on ADTN yesterday; most of those one day gains have evaporated as nothing wants to stick. So we'll continue to remain defensive and hopefully provide our members with useful market guidance until it becomes a better trading environment. We know the S&P got as low as 1872 the other day so that will be a level the bulls hope to defend; after that is 1848. To the upside...well, we might not need to worry about that today but moving back above 1900 is a goal to shoot for. KEY EARNINGS REPORTS Companies reporting earnings today (February 5) CME, MCO, TSN and WY Companies reporting earnings Monday(February 8) include: DO, HAS, L, OI and YELP ADDITIONS TO WATCH LISTS: Nothing to add today; need to continue to remain cautious BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: 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 finally has given up and if it closes below $91 it will come off the Watch List. 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