EB Watch List Update Report

MARKET NOTE: Dear Members: Earnings season is in full swing and so far the market seems to have liked what it has seen. Just take a look at EBAY which is up over 11%, QCOM up over 7% and Biogen up over 6%. The same cannot be said about Intel which is down over 4% but traders don't seem to care much about that; they're in too good of a mood. Right now we're seeing some relief in the major indexes; it is certainly overdue. The VIX is up 5% but still remains very bullish. Consider this; the VIX is currently near 12. Historically its never been below 9. On the other hand, its been as high as 90. So you can see that fear has completely disappeared from the market. The bulls continue to argue that there's no other place to put money to get any yield. It's hard to argue with that thinking with bond yields so low. And traders have cooled to oil and gold, leaving equities the current asset of choice. If the bulk of companies keep beating earnings expectations the major indexes could remain overbought. 2175 is now a level to clear on the S&P as it now represents the all time high. Should that go then I would watch to see what happens near 2180. To the downside I still think 2130 would be a reasonable pullback level; it just might have to wait. One thing to watch for today; will traders be willing to buy on even a mini dip? If so then the bulls might have a shot at taking the market higher, maybe as high as 2200. But until we see some greater relief in the major indexes it will likely be more like inching higher rather than exploding to the upside. KEY EARNINGS REPORTS Companies reporting earnings today (July 21) include: ALK, T, BBT, BIIB, COF, CMG, DHI, DISH, DPZ, DNKN, FLEX, GM, HBAN, JCI, MAN, MXIM, MORN, NUE, NVR, P, PYPL, PHM, DGX, SLB, SHW, SWKS, LUV, SWN, SBUX, SYK, SWFT, TRV and V Companies reporting earnings tomorrow (July 22) include: AAL, AMLP, GE, HON, MCO and WHR ADDITIONS TO WATCH LISTS: None at this time but will let you know if I spot a high reward to risk opportunity 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 - Stock made some progress yesterday. Would like to see it close back above yesterday's close of $48.83 to set it up for a possible move higher. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List PLAY - Stock is up slightly and a close above 49.31 would be very bullish. 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