EB Watch List Update Report

Dear Members: MARKET NOTE: The bulls must have gotten the memo that the NASDAQ was in peril of a major pullback with the 20 day moving average converging on the 50 day. Accordingly, the NASDAQ as well as the other major indexes are up nicely as we begin a new trading day and week. The big news over the weekend was AT&T buying Time Warner showing mergers can pop up out of nowhere. One things for sure today; fear has subsided with the VIX now back below all key technical levels. This is a sharp contrast to earlier last week when the opposite was true. This week will feature a plethora of important earnings reports, including Apple tomorrow after the bell, as we enter the heart of earnings season. So far overall response to earnings has been mixed but this week is even more important with lots of highly visible companies about to report. The S&P has made some progress as it is now back above its 20 day moving average but still remains below its 50 day. But it did hold where it needed to last week with the bulls hoping to clear the 50 day, now just below 2160. None of the major indexes are either oversold or overbought. So it looks like market direction will be dictated by the overall response to earnings this week. Clear 2160 then the bulls will then start talking about revisiting the all time high of 2193. Close below 2114 and the bears will regain the edge. KEY EARNINGS REPORTS Companies reporting earnings today (October 24) include: BOH, BCC, CLGX, CR, PCAR, TMUS, V and ZION Companies reporting earnings tomorrow(October 25) include: MMM, AKS, AKAM, AMP, AAPL, AIZ, BHI, BXP, EAT, CHRW, COF, CAT, CMG, CB, CIT, GLW, DFS, DD, LLY, ESRX, STAY, FCX, GM, JNS, JBLU, JNPR, KEY, KKR, LMT, MMC, MAS, MRK, NBR, NCR, NLSN, OI, PCAR, P, PNRA, PG, R, SHW, SAVE, S, TNC, TR, TRU, UA, UIS, UTX, VLO, VRTX, WAT and WHR ADDITIONS TO WATCH LISTS: Please note that we have updated the Candidate Tracker and added a new batch of stocks for members that you can find on the site. Also, we added ETFC to our Watch List earlier this morning at an initial entry price of $29.27 (as of the email) with a second entry at $28.65 on a pullback with a price target of $41.40 and a stop of a close below $28.20. All details will be added to the Watch List section prior to tomorrow's open. 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 up over 1% today as it has cleared all key technical levels intra day. However, PLEASE NOTE that the stock will be reporting earnings tomorrow so WILL BE REMOVED FROM THE WATCH LIST by day's end as we find it is too risky to hold stocks into earnings reports. DELETIONS FROM OUR WATCH LISTS: We will be removing EAT from our Watch List by day's end as it will be reporting earnings tomorrow. At your service, John Hopkins EarningsBeats