EB Watch List Update Report

Dear Members: MARKET NOTE: A little bit of selling pressure today as traders await earnings from the largest market cap company in the world, Apple. The bulls are hoping for a strong showing to help bolster the market as response to earnings reports so far continues to be mixed. The selling has provoked a rise in the VIX but the good news for the bulls is it remains below all key technical levels. So traders are remaining pretty calm on the selling. Consumer confidence was released this morning and was much weaker than expected. So right away traders wonder if the Fed will have to back off its stance on raising rates which brings back uncertainty, something traders never like. The S&P has slipped back, at least intra day, below its 20 day moving average, but not by much. In the meantime the NASDAQ remains above all key technical levels after the critical save by the bulls yesterday. So the response to AAPL's earnings after the bell today becomes even more important. The bulls have more work to do here if they hope to take the market higher. Clearing 2160 on the S&P is a must. Otherwise we could remain in stall mode. And if selling does pick up we know that 2114 is a critical level of support. One final thing; the US Dollar is extremely extended here; it's been rising non stop for almost a month now and is in need of relief. Should that happen it should provide a boost for commodities as well as equities. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow(October 26) include: ALLY, ABX.TO, BAYN.DE, BIIB, BA, BS, BGG, BVSN, BWLD, CG, CAKE, KO, CMCSA, DLB, DTE, EFX, FFIV, FISV, FLIR, FORR, FBHS, GRMN, GD, G.TO, GRPN, HES, HLT, HBAN, IR, LQ, MDLZ, NDAQ, NEM, NSC, NOC, OC, PAG, POL, PSA, RJF, LUV, STT, SU.TO, TER, TSLA, TXN, TRN, UHS, VMW, GRA, WM, WDC and WYN 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. I've scanned them and see that many gapped up nicely after their earnings reports and could use some pullback. So will be patient on those that look attractive but are currently too pricey. Also, we added CTXS to our Watch List this morning at an entry price of $85.67 and with a price target of $89.60 and a tight stop of a close below $84.70. 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 ETFC - Added stock to our Watch List yesterday at initial entry of $29.27 and second entry at $28.65 which was hit today. Put a very tight stop loss on it of a close below $28.20 in case it goes against us. Small Cap Watch List EAT - We removed EAT from our Watch List yesterday as it was set to report earnings today. You can see the stock is down over 4% after recovering some earlier in the session after touching its 200 day moving average. We don't like to hold stocks into earnings reports because you can never tell how the market will react. But if you did hold the stock watch for a close back above the 20 day moving average now at $50.88 (now resistance) which would be bullish. DELETIONS FROM OUR WATCH LISTS: No deletions unless a stock on the Watch List closes below its stop loss. At your service, John Hopkins EarningsBeats