EB Watch List Update Report

Dear Members: MARKET NOTE: In yesterday's update I pointed to Apple's report after the bell last night to be important. It was important - it's the largest market cap company in the world. So far AAPL is down just under 3% and is putting pressure on the tech heavy NASDAQ. And though the Dow and S&P are flat to up slightly it's still tough for the market to make much progress when a company as visible as AAPL misses expectations. The VIX is up just over 3% and earlier in the session was back above all key technical levels. So traders are trying to figure out if its safe to dabble in the market or simply move to the sidelines. The NASDAQ is off its low of the day as it tries to remain above all key technical levels. So far it has. But the S&P remains below both its 20 and 50 day moving averages; it's having a tough time gaining any traction. In spite of the recent weakness none of the major indexes is close to being oversold; not great news for the bulls. And now we're getting deeper into earnings season, with tons of companies reporting over the rest of this week and next week as well. In strictly looking at the charts its tough to get bullish here. Though the US dollar is down slightly today it has been on a tear lately as it crossed $99 yesterday, its highest level since February, putting pressure on equities. But it is very stretched now and any pullback would likely help stocks. The S&P got as low as 2131 earlier in the session before bouncing so has held the low from last Friday. But if that goes the S&P could possibly revisit the October low of 2114. The S&P must clear 2158, the current 50 day moving average, if the bulls hope to make any further advancement to the upside. KEY EARNINGS REPORTS Companies reporting earnings today (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 Companies reporting earnings tomorrow(October 27) include: AET, AFL, GOOGL, MO, AMZN, AMGN, AMCC, AVT, BIDU, BAS.DE, BX, BWA, BMY, BC, CELG, CHH, CHDN, CRUS, CME, CL, COLM, COP, DBK.DE, DPS, EXPE, F, GCI, HBI, HLS, IP, IVZ, LLL, LAZ, LNKD, MPC, MCK, NOKIA.HE, PF, POT.TO, RDN, RTN, SIRI, SCTY, SWK, SYK, TROW, TWTR, UPS, UTHR, VRSN and YRI.TO ADDITIONS TO WATCH LISTS: As we've seen from recent alerts it can be tough in a going nowhere market to nail down a winning trade, even on those companies that have reported solid earnings. We've purposely put in tight stops and some have triggered quickly. But sometimes you need to be even more cautious than usual when market direction is in question. We certainly would feel more confident if all three of the major indexes cleared key technical levels so until that happens we'll continue to be selective. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List CTXS - We added CTXS to our Watch List yesterday after it pulled back after it posted strong earnings. So far it's holding above its 20 day moving average, currently at $84.91, which is a level we would like to see hold. We have a very tight stop of a close below $84.70 in case it continues to move lower. Closing back above $85.50 would be a positive development. Mid Cap Watch List ETFC - Stock hit our second entry at $28.65 yesterday but failed to close above our stop of $28.20 so we will remove it from our Watch List. It's back above that level now and a move back above its 20 day moving average, now at $28.51 could help to put the stock back on track, especially if the market moves higher. Small Cap Watch List None at this time DELETIONS FROM OUR WATCH LISTS: We are removing ETFC from our Watch list as it closed below our stop loss. At your service, John Hopkins EarningsBeats