EB Watch List Update Report

Dear Members: First, please note that we will be providing members with a link to the recording of last night's webinar later today. MARKET NOTE The selling in the market today has traders wondering if the nice rally of late was no more than an oversold bounce. In a fairly short period of time the S&P went from 1810 to 1947 and between yesterday and today a chunk of that is being taken back. The bears will argue that nothing really changed since that 1810 level was hit while the bulls will argue the selling was overdone and things aren't as bleak as portrayed. As usual, the answer likely lies somewhere in between. Once again there is an observable relationship with lower oil prices and lower stock prices. And we're seeing another flight to safety with the ten year treasury note down over 7 ticks while yielding 1.67%. Notice also the continuing attraction to gold while the US dollar has moved off of its most recent lows. So all in all stocks seem to be the odd man out. But that's been the case all year long with the bulls unable to convince traders to put their money to work in stocks. The VIX is higher today as well, up over 7%, just after it looked like traders might be warming to stocks. And now the S&P is back below its 20 day moving average so the bulls no longer have any technical advantage to point to. Bottom line is there aren't a lot of reasons to be too excited about the market at the moment and if the S&P closes below 1904 then we could be looking at a retest of the 1856-1870 level. Perhaps if that holds it would show a higher low from that 1810 level. And, if the bulls are able to close the S&P back above that 1904 level it could show that traders think the worst of the selling might be over. KEY EARNINGS REPORTS Companies reporting earnings today (February 24) AES, CHK, CLR, CLGX, EV, IMAX, LB, LOW, NTES, CRM, SBGI, SUN, TGT and RIG Companies reporting earnings tomorrow (February 25) include: APA, ADSK, BGS, BIDU, BBY, BIO, CVC, CPB, DPZ, EOG, GPS, G.TO, HNT, HLF, INTU, ITC, KSS, KHC, MHK, PANW, PF, RRD, SBAC, STWD, TD.TO, UH, VC, W and ZBRA ADDITIONS TO WATCH LISTS: It's been pretty rare when we've had no active Watch List stocks but with the S&P hanging out near its 20 day moving average the market could go either way here. So it makes sense to continue to lay low for a bit to see which way it breaks. As usual, if we spot something we like, either long or short, we will notify 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 There are no Mid Cap stocks on the Watch List at this time. 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. John Hopkins, EarningsBeats