EB Watch List Update Report

MARKET NOTE: Dear Members: The bulls are back at it today with all of the major indexes higher. The Dow came within one point of an all time high before stalling some and the NASDAQ is showing the most strength today as it tries to play catch up. As has been the case of late traders are content to be long stocks and are very complacent. This can be seen in the VIX which remains well below all key technical levels and the equity only put call ratio as it remains close to .50. No fear out there which continues to concern me, at least in the very near term. It's also what's kept me from getting aggressive on the long side; I would much rather see the market pull back some then chase when it has moved so much, especially with all of the major indexes at or very near to being technically overbought. Let's also remember that earnings season will kick into full gear this week and once a bunch of numbers start coming out it is likely to move the market. The question is, which way? Right now its too hard to tell though the way the market is holding up shows some confidence that earnings could come out better than expected. But if we start to see some misses the mood could shift quickly. Thus I am content to continue to go easy here knowing we could soon get a much better opportunity to buy stocks cheaper. AND, if the market continues to go higher it will simply be even more overbought meaning the pullback could be even greater than most expect. KEY EARNINGS REPORTS Companies reporting earnings today (July 18) include: BAC, SCHW, EMC, HAS, IEX, IBM, NFLX, STLD, VMW and YHOO Companies reporting earnings tomorrow (July 19) include: CMA, DFS, GS, ISRG, JNJ, LMT, MRVL, MSFT, NAVI, PM, AMTD and UAL ADDITIONS TO WATCH LISTS: We added quite a few stocks to our Candidate Tracker last week with the expectation that some of them will become trade alerts to members sometime in the near future. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List NWL - This stock is having a tough time advancing even with the market in bull mode. If it closes below its 50 day moving average, now at $48.04, it will be removed from the 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 other 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