EB Watch List Update Report

Dear Members: MARKET NOTE: Today's market action is a reminder to the bulls that the nice little rally of late should not be interpreted as an all clear signal. It's not like the market is getting clobbered today and in fact the NASDAQ is higher, but the nice momentum the bulls enjoyed for three days in a row has now subsided some, not exactly a confirmation that the worst of the selling is over. The pressure on stocks today might be linked somewhat to oil coming back down to earth; so much for OPEC solving the oversupply problem. Also, the CPI report out this morning came out much stronger than expected, leading some to immediately think about Fed rate increases. However, in looking at bond yields, the ten year note is lower, yielding just 1.73%; not exactly showing a Fed rate increase in imminent. More important is that so far the bulls have managed to hold the 20 day moving average on the S&P; but it's early in the day and we all know that could change. But the bulls will argue that some modest selling after the rally from the recent lows is not so bad, and so far, they are right. And the VIX is flat as a pancake today indicating traders are no longer in panic mode. Still, the reality is the bulls are having a tough time convincing traders to go all in on the long side, to buy on the dips. And apparently there just has not been enough good news or any catalyst to motivate traders to commit more money to the market. However, right now the bears are the ones having an even tougher time convincing traders to go short, with positive divergences favoring the long side, with 1940-1950 possibly in sight. So as long as the 1900 level holds the risk to reward at the moment appears to be to the long side. KEY EARNINGS REPORTS Companies reporting earnings today (February 19) DE Companies reporting earnings Monday (February 22) include: AGN, DDS, FIT, THC, VRX.TO and VRSK ADDITIONS TO WATCH LISTS: We're still reluctant to get aggressive here, either on the long or short side. We're one quick swoosh down to falling back below the one key technical level the bulls have managed to get back above; they are still on thin ice. But if that 1900 level on the S&P does hold we could see an attempt at that 1940-1950 level on the S&P. Still, with the weekend upon us, let's just lay low here and see what the new week brings. 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 down slightly today after stalling near that $60 level yesterday. It still needs to clear that level to advance higher. 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. I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins, EarningsBeats