EB Watch List Update Report

Dear Members: MARKET NOTE: We made it through the long weekend and so far all of the major indexes are higher. The oil bulls were buoyed by the prospects of production cuts but have had to settle for a freezing at current production levels which remain elevated. Accordingly, oil has stalled after showing promise of moving higher earlier this morning. Still, stocks are higher with the S&P taking a shot at its 20 day moving average earlier in the session before settling down some. While the bulls are hoping that early gains will hold into the close they know that traders remain reluctant going all in on the long side. In fact, many traders are wondering if the move higher the past few sessions presents a shorting opportunity, quite a different line of thinking than we've seen through most of the bull market that began back in 2009. But this is the new reality that traders need to adapt to; being flexible to going long, short or remaining in cash, always a safe alternative. We know that the S&P got as low as 1810 at its recent low last week. And we know that the 20 day moving average is now at 1891. So that is the current range to work with, with the S&P getting within 3 points of the top end earlier today. But that level could be challenged again if traders start to sense that the worst of the selling is behind us. And clearing that 1891 level could give the bulls some much wanted momentum and set the stage for even higher prices. KEY EARNINGS REPORTS Companies reporting earnings today (February 16) A, CERN, CAKE, DVN, ESRX, FE, GPC, HRL, NRB, PSA, TEX and TRU Companies reporting earnings tomorrow (February 17) include: ADI, ABX.TO, DPS, GRM, GDDY, HST, JACK, MRO, MAR, MORN, NTAP, NEM, NVDA, PCLN, PGR, SPWR, SNPS, TMUS and WMB ADDITIONS TO WATCH LISTS: First, please note that we will be adding both long and short trading candidates to our Candidate Tracker today. We will let you know when they are added. Right now the S&P is within 10 points of major resistance. We are going to continue to monitor throughout the day to see if it clears or stalls at that level and if appropriate will issue long/short alerts to members. 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 CREE - We added CREE to our Watch List on Friday at an entry of $28.37. We issued a profit alert this morning at a price of $29.84 and since then the stock has cleared our target of $30. The stock got as high as $31.02 in June of last year so we'll consider that the next level of resistance. If you continue to hold you should consider raising your stop loss to make sure you lock in profits on any pullbacks RMD - Stock is moving in the right direction with the next level of resistance right around $59. Closing above that level would be bullish. 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