EB Watch List Update Report

Dear Members: MARKET NOTE: The higher prices for three days in a row has led to some skepticism today with traders well aware that 4 days in a row of positive action is rare. That is particularly true in today's market environment, especially with the S&P higher by 6.5% since last week's low. But so far the selling has been fairly contained and orderly with the S&P remaining well above its 20 day moving average. And the VIX is up less than 2% so certainly no panic on this profit taking. Oil slipped some after inventories rose more than expected and this seems to have taken some of the wind out of the sails. Something else not helping today; Walmart's weaker than expected earnings with the stock down almost 5%. Never good for the market when a major retailer slips. Not surprisingly, the only sector higher today is Utilities, while bond yields are lower, both an indication that traders are quick to move their money to those areas that seem safer when equities are lower. What will be interesting will be to see if traders take advantage of this early selling by buying on the dip or will losses intensify later in the day? It might give us a hint as to whether or not the worst of the selling is behind us. I do think it is safe to say that the bulls aren't going to lie down easily here after being beaten down all year long, given the recent momentum. Instead I believe we'll see them take a shot at the 1940-1950 level on the S&P once this bit of selling slows. For sure they will be motivated to hold 1900 on the S&P, a level just above the 20 day, knowing if that goes they will lose the little bit of technical advantage they currently have. KEY EARNINGS REPORTS Companies reporting earnings today (February 18) AMAT, SAM, CAB, LNG, CHH, CUBE, DISCA, DISH, DUK, EQIX, FLR, H, MGM, JWN, SIX, HOT, TTC WMT, WM and YRI.TO Companies reporting earnings tomorrow (February 19) include: DE ADDITIONS TO WATCH LISTS: Not adding any new stocks to the Watch List at the moment as I feel we are right in the middle of a narrow range that could go either way. Will continue to monitor and let members know if we see any long or short candidates that present high reward to risk opportunities. 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 RMD - Stock is higher today as it continues to batter away at the $60 level which was last touched in early December. Clearing that level would be very 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