EB Watch List Update Report

Dear Members: MARKET NOTE: All of the major indexes are down in lock step today one day after the S&P failed once again to clear its 20 day moving average. It comes one day after the final presidential debate with traders now refocused on earnings. The VIX is only up 2% but its now back above both its 20 and 50 day moving averages, so right back to one finger on the sell button. Though the S&P is lower the fact is it remains within a range with key support at 2114 and key resistance at 2161. In between you've got 2147 as the first key technical to clear which has been illusive for the bulls for the past week. We continue to see mixed results on earnings reports but so far the market hasn't shown an overall positive reaction, witness overall weakness. The chart formation on the NASDAQ remains troubling as the difference between the 20 and 50 day moving averages continue to narrow. Keep in mind that the 20 day has not been below the 50 day on the NASDAQ since the beginning of July. So this is a critical point for the bulls; does the NASDAQ hold and rally here or should traders prepare for another leg down? Let's remember that there are still thousands of companies set to report earnings over the next few weeks and it is likely that the results and reaction by traders that will determine market direction. Finally, none of the major indexes is close to being technically oversold, leaving it wide open for more selling should traders get spooked. So the bulls know the stakes here and will do everything they can to try to market from further bleeding. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow(October 21) include: DAI.DE, GE, HON, MCD, MCO, RCL and STI ADDITIONS TO WATCH LISTS: As more companies report earnings we will begin to add those that beat earnings and have solid charts to our Watch List. Will keep you posted. Will also let you know if there are any additions to the Watch List. 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 EAT - Stock is down slightly. Would like to close back above its 20 day moving average, now at 50.73. DELETIONS FROM OUR WATCH LISTS: No deletions at this time. At your service, John Hopkins EarningsBeats