EB Watch List Update Report

Dear Members: MARKET NOTE: In yesterday's update I pointed to a disproportionately high number of puts to calls on the SPY with options set to expire on Friday. The move higher today has so far wiped out plenty of put premium and there are still plenty of puts at a higher level meaning the market could continue to go higher in the near term. At the same time both the Dow and S&P remain below their respective 20 and 50 day moving averages while the NASDAQ is doing its best to clear both. This is actually a critical time for the NASDAQ as the 20 day moving average is quickly approaching the 50 day from above. And as we've seen very clearly with both the Dow and S&P, when their 20 day moving averages moved below their respective 50 day moving averages, both indexes weakened. So the question becomes; will earnings come out stronger than expected, giving the market new life? It's possible as we've seen Netflix up almost 20% on its numbers from last night. At the same time, IBM is down over 3% and banks continue to struggle to build any momentum in spite of some decent earnings. Historically we're in a better time of the year. But we've also got an election in three weeks. So we've got some positive and negative signals just all of the major indexes still struggling technically. I think at this time it makes sense to see if the S&P can clear its 20 day moving average, now at 2148. Until it clears that level the market remains vulnerable to more selling. It's only another 10 points from that level now so you might want to take that into consideration until we see further confirmation that the worst of recent selling is over. KEY EARNINGS REPORTS Companies reporting earnings today (October 18) include: BLK, CMA, CREE, DPZ, GS. HOG, INTC, ISRG, JNJ, KSU, NAVI, NVR, PM, RF, UNH, GWW and YHOO Companies reporting earnings tomorrow(October 19) include: ABT, AXP, BBT, CP.TO, CTXS, CLB, DOV, EBAY, HAL, KMI, LRCX, LVS, MTB, MAT, MS, NTRS, RAI, STX, SLM, STJ, STLD, TSCO, TUP, USB and XLNX. ADDITIONS TO WATCH LISTS: Will let you know if there are any additions to the Watch List. Would like to see the S&P clear its 20 day before getting too active. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List There are no Large Cap stocks on the Watch List at this time. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List DV - Stock is flat and nears to clear 22.94 to make further progress. . EAT - Stock continues to struggle to clear key technical levels. A close back above $50.78 would be a start. Will give it another day or so to see if is any progress. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats