EB Watch List Update Report

Dear Members: MARKET NOTE: The feel good market of yesterday has turned into some profit taking today with all of the major indexes lower. I've been watching the action all morning and to be honest I can't think of any reason to be active on the long side. The S&P is struggling to hold its 20 and 50 day moving averages and the NASDAQ faded yesterday when it hit its 20 day moving average exactly on the nose and from underneath. And the NASDAQ remains below all key technical levels. It's true that stocks are off of their session lows, maybe a bit of bargain hunting. But ever since the S&P got back above 2100 in mid April it has not been able to make any progress. In fact, the distance between the 20 and 50 day moving averages on the S&P is narrowing and the bulls do not want to see the 20 day cross below the 50 day. Just go back and look at a chart of the S&P from mid December when that last occurred and you will see what happened; a sharp decline. Now, this has not happened yet, and perhaps the bulls will convince traders to put money to work on the long side. One other point. Oil has been on fire lately with US crude not that far from $50 a barrel. And stocks have generally gone along for the ride since oil put in its bottom under $30 a barrel earlier in the year. So if oil tops at some point soon, that could put pressure on equities as well. Bottom line today; just don't like what I'm seeing at the moment so will remain cautious. KEY EARNINGS REPORTS Companies reporting earnings today (May 17) include: HD and TJX There are no key earnings reports due out today Companies reporting earnings (May 18) include: ADI, BAH, CSCO, HRL, LB, LOW, PGR, CRM, SPLS, SNPS, TTWO, TGT, URBN and WSM ADDITIONS TO WATCH LISTS: I continue to see no reason to get aggressive here, either on the long or short side. Let's be patient until signals show otherwise. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List STI - Stock is slightly higher in spite of a weak market today. Target remains $43. There are no Large Cap stocks on the Watch List at this time. Mid Cap Watch List Small Cap Watch List 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