EB Watch List Update Report

Dear Members: MARKET NOTE The bulls managed to clear the 50 day moving average on the S&P with all of the major indexes higher or flat today though well off session highs. A better than expected revised GDP report gave the bulls something to work with along with higher oil prices, higher bond yields and a lower VIX. In some respects this has been a fairly tepid reaction considering both the Dow and S&P are back above their respective 50 day moving averages. We do need to remember that the S&P has now risen over 8% since its bottom at 1810. So traders are trying to figure out how much steam might be left in this recent rally. Still, two out of the three major indexes have risen above key technical levels which has not been the case since late last year. As long as the early gains hold, and especially if they grow into the close, the bulls will have some bragging rights to go along with momentum. But, a close back below 1944 would shift the momentum back to the bears. To the upside there is a path to 1985 if the buying continues. KEY EARNINGS REPORTS Companies reporting earnings today (February 26) FL, HLT, JCP and LMCA Companies reporting earnings tomorrow (February 29) include: HTZ, HHC, NRG, TRCO, VRX.TO, ADDITIONS TO WATCH LISTS: We added HBI yesterday and ROP today as short candidates with comments below. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List SHORTS: HBI - This stock was added yesterday to our short list with an initial entry price of $28 and a target of $23.36 to the downside. It's up slightly today but has pulled back after touching the 50 day moving average at $28.49, right where we would expect it to run into trouble. ROP - This stock was added today to our short list with an initial entry price of $171.08 and a target of $160 to the downside. It's fairly flat today. 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. I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report. John Hopkins, EarningsBeats