EB Watch List Update Report

Dear Members: First, please note that I have added a new Behavior Modification Case Study to my blog on the site. Also, please note that I will be conducting a live webinar with Tom Bowley tomorrow at 4:30 pm eastern. We will be discussing earnings misses and beats and looking at some examples of trading candidates. There is no need for you to register and you will be sent room instructions tomorrow prior to the event. The webinar will be recorded for those unable to attend the live event. MARKET NOTE: Traders are in a positive mood this morning with all of the major indexes higher. This move higher comes with oil higher as well and overseas markets performing well. The VIX is down by more than 3% and back below 20 for the first time since early in the year. So certainly more confidence in the market today than we've seen in a while. This confidence comes just as the S&P gets close to key resistance near 1950. And it comes as some negative divergences are popping up which could be a heads up for traders to get a bit more defensive here. That might sound strange but don't forget that the S&P was at 1810 about 10 days ago and came close to key resistance early in the session so some profit taking here makes some sense. So the question becomes, is the rally of late over or will the bulls take another stab at that 1950 level, with hopes of clearing it and spooking the shorts? Keep in mind that the S&P has not risen above its 50 day since late 2015. So it's a tall order that might require more than one attempt as a close above 1951 could set the stage for even higher prices which the bears are likely to fight big time. So right now it looks like the range on the S&P is 1903 to the downside and 1951 to the upside. It could trade in this range until traders decide in unison the most likely direction in the near term. KEY EARNINGS REPORTS Companies reporting earnings today (February 22) AGN, DDS, FIT, THC, VRX.TO and VRSK Companies reporting earnings tomorrow (February 23) include: Y, BMO.TO, CVC, CTB, DLTR, FSLR, HLS, HD, SJM, M, NA.TO, NCLH, ODP, PZA, TOL and WBMD ADDITIONS TO WATCH LISTS: As we get closer to key resistance on the S&P we will be scanning for some short trading candidates - i.e., those companies that missed earnings expectations and could provide a high reward to risk. If we spot any we will send you a short alert. In the meantime, we are holding off on long trading candidates here. 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 - We have decided to take profits on this stock at the current price of $59.50 (as of this email) since it continues to struggle near $60 and the market has made a nice move lately. If you continue to hold watch to see if that $60 level breaks and consider raising your stop to avoid any unnecessary losses. Small Cap Watch List There are no Small Cap stocks on the Watch List at this time. DELETIONS FROM OUR WATCH LISTS: We are removing RMD from the Watch List with a profit of over $2. There are no other deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. John Hopkins, EarningsBeats