EB Watch List Update Report

MARKET NOTE: Dear Members: We're getting some very much needed selling this morning; the market had gotten stretched. It's coming just a day before the Fed starts its FOMC interest rate meeting with an announcement scheduled for Wednesday at 2:00 pm eastern. It's not unusual for the market to correct some ahead of a Fed meeting, especially when it has been on a tear. It's a way of letting the Fed know that if they do anything out of the ordinary it could impact the market in a negative way. In this case the bulls are hoping the Fed stands pat; no rate increase. But traders will also be looking for signals to see if the Fed might raise rates in September. Notice how the VIX has popped 15% to the upside. You can see that it doesn't take much to remind traders that things can change quickly. The VIX still remains below all key technical levels so the bears still have work to do if they hope to regain the momentum. But should the VIX clear 14 it would at least give the bears a bit of technical advantage. As usual we need to keep things in perspective; the S&P was right at its all time high when the market closed on Friday. So the selling we are seeing so far today should be seen as a necessary correction rather than a major purge. Let's also keep in mind that there will be a boatload of companies reporting earnings this week including AAPL after the bell tomorrow. And we're also going to get a first look at Q2 GDP on Friday. So add it all up and its almost a guarantee for increased volatility, much like we are already seeing this morning. For now the range on the S&P is 2175 to the upside and 2137 to the downside. In the meantime it makes some sense to go slow here; things could look a lot different in 48 hours. KEY EARNINGS REPORTS Companies reporting earnings today (July 25) include: BOH, CR, DHR, ESRX, GILD, KMB, LVS, S and TXN Companies reporting earnings tomorrow (July 28) include: AKS, AKAM, ALLY, AMP, APC, AAPL, AIZ, BAX, BXP, BWLD, CHRW, CSL, CAT, CHKP, CB, CTXS, DTE, DD, LLY, FCX, ILMN, JBLU, JNPR, KEY, MAS, MCD, NCR, NLSN, NUVA, PCAR, PNRA, RGC, RHI, SIRI, HOT, TROW, TRU, TWTR, UA, UIS, UTX, UHS, VLO, VZ, WAT and ZION ADDITIONS TO WATCH LISTS: Please note that we've added a new batch of stocks to our Candidate Tracker that members now have access to. Some of these could become trading alerts. 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 is down slightly and a close above $49.29 would be bullish. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List PLAY - Stock is fairly flat 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