EB Watch List Update Report

Dear Members: MARKET NOTE: Microsoft reported its earnings after the bell yesterday with the stock hitting an all time high. One would think that would help to fuel the market higher but instead it remains in stall mode. Perhaps this has something to do with mixed results so far, GE, for example, down over 1.5% after reporting its numbers yesterday and IBM getting hit hard the other day on its earnings reports. It's clear that both the bulls and the bears know the NASDAQ is struggling here as it straddles its 20 and 50 day moving averages which have converged. Can the bulls defend this important level or will the bears be able to inflict more damage? The strength in the US dollar of late has helped to put a cap on equities. But in looking at a chart it's clear that the dollar is now technically overbought. And it's coming as the dollar hits its highest level since the beginning of February. Talk of a Fed rate increase continues though in looking at treasury yields it remains questionable. So we've got some conflicting signals here which is keeping some traders on the sidelines. One positive for the bulls is the VIX which is now back below all key technical levels. So whatever worries might exist aren't as great as they were even a week ago. We do need to remember that this is options expiration Friday. But by now the bulk of options puts and calls squaring has already taken place leading me to believe the focus remains squarely on earnings. There's no question that the bears have the technical advantage here; all of the major indexes remain below key technical levels. And none of the major indexes is technically oversold, not great news for the bulls. The range on the S&P is 2114 to the downside and 2160 to the upside. It's pretty much in the middle of that range right now. Not much to do but watch and see if one of those levels goes which could change the narrative in the near term. KEY EARNINGS REPORTS Companies reporting earnings today (October 21) include: DAI.DE, GE, HON, MCD, MCO, RCL and STI Companies reporting earnings Monday(October 24) include: BOH, BCC, CLGX, CR, PCAR, TMUS, V and ZION 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 has finally managed to move back above its 20 day moving average. A close above $51.29 would be bullish. DELETIONS FROM OUR WATCH LISTS: No deletions at this time. I want to wish everyone a restful weekend and will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats