EB Watch List Update Report

Dear Members: MARKET NOTE In yesterday's update I noted there should be support on the S&P near 2043. This morning the S&P touched 2044 before bouncing some. So far that bounce hasn't been significant but it does show that traders are willing to buy on dips when support comes into play. In looking for positives here the bulls can point to the fact that none of the major indexes are now technically overbought. Maybe a small consolation but it's hard to make progress when a stock or index is stretched. It should be pointed out that oil has been pulling back for almost two weeks now after climbing from what many analysts felt was a bottom just below $30 a barrel. So perhaps we're nearing a level that is more acceptable to the market. At the same time it should be pointed out that in spite of the pullback in oil the market has held the bulk of recent gains, so that can be looked at as a positive as well. In looking at the VIX it is higher by 7% today as it challenges its 20 day moving average from underneath so a bit of nervousness on the recent selling. We're going to want to see if that 2043 level holds on any further selling. If it doesn't then expect 2033 to be tested. This level represents the 20 day moving average, a level that has held since mid February and one the bulls will work hard to defend. To the upside the bulls will be looking to revisit and clear the most recent high of 2075. Perhaps the market will remain in the current range until the FOMC minutes are released tomorrow with traders looking for any new evidence that a rate hike will or will not be coming anytime soon. KEY EARNINGS REPORTS Companies reporting earnings today (April 5) include: DRI Companies reporting earnings tomorrow (April 6) include: AYI, BBBY, STZ and MON ADDITIONS TO WATCH LISTS: Going to hold off on any new additions while the S&P is trading in this current range BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List AMAT - Stock is down slightly after the recent move higher. It had gotten a bit stretched so hopefully the selling the past two sessions will attract new buyers. GRMN - Stock is up slightly today and a close above $40.22 would be bullish. TRIP - Stock is down by over 2.5% As a reminder we have a stop of a close below $63.90. Please note we ARE CHANGING THE STOP to a close below $63.70 which represents the 50 day moving average, a level that needs to hold or it will come off our Watch List. 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 or above the stop loss provided. At your service, John Hopkins, EarningsBeats