EB Watch List Update Report

Dear Members: MARKET NOTE: The market is at a key level right now. It could go either way. All of the major indexes are at key technical levels. The S&P is a few points below its 20 day moving average and the NASDAQ is below its 20 and 50 day moving averages. In fact the 20 day is inching closer to the 50 day which could spell trouble it it closes below. The VIX is down by over 6% so it does show a bit more confidence today. In looking at options, which expire on Friday, the market makers have mostly done their work. There's no longer a disproportionate number of puts to calls. So nothing standing out either way; no advantage to the bulls or the bears. We need to remember we are now smack in the middle of earnings season. So far its been a ho-hum response. Otherwise equities would be flying and they're not. That can change on a dime if we start to see a bunch of stocks beating expectations. But it's too early to predict. We need to see the S&P close above 2148 as a start. If it doesn't then we'll remain in stall mode at a minimum. Let's continue to err on the side of caution here and see what develops as the day progresses. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow(October 20) include: AMD, ALK, AAL, APOL, BK, DHR, DV, DNKN, ETFC, KODK, GNTX, IMAX, KLAC, MXIM, MSFT, N, NUE, PHM, SLB, SON, SWN, TXT, TRV, UNP and VZ 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 - This stock is going to report earnings tomorrow. We have found that it is too risky to hold stocks into earnings reports. Thus we are going to REMOVE FROM OUR WATCH LIST prior to the end of the trading day. EAT - Stock is right up against its 20 day moving average at 50.78. A close above this level would at least represent some technical progress. DELETIONS FROM OUR WATCH LISTS: We will be removing DV from our Watch List by day's close since they will be reporting earnings tomorrow. At your service, John Hopkins EarningsBeats