EB Watch List Update Report

Dear Members: MARKET NOTE: It's already a very interesting day. The first reading of Q3 GDP came out stronger than expected, indicating the US economy is in better shape than many people think. On the surface that's a good thing. But the market has barely budged. This is because trader think the better than expected showing means the Fed will raise rates in December. It's one of those times when good news might be seen as bad news since there's concern that equities won't rise if rates rise. Adding to the concern is the fact that all of the major indexes remain technically challenged. In fact just after it looked like the NASDAQ might regain some momentum earlier in the week it's now back to looking very weak with the 20 day moving average now right on top of the 50 day and a cross below would be bearish. Earlier in the session the VIX rose and touched its 200 day moving average, now at 15.90. It has pulled back from that level but any increase in selling could easily result in increased fear which the bulls are hoping to avoid. We've had enough earnings up to this point to get a sample of the major sectors. Given the market response so far it appears traders are not all that impressed. The S&P got as low as 2127 today, the lowest level since the October 17 low of 2124. Should that go then 2114 is next, a level the bulls know they need to defend to keep the market from moving even lower. Of course we've got an election taking place in less than two weeks. We've also got a FOMC meeting next week where traders will be looking for even more clues on the possible direction of interest rates. So it is possible the market will remain in going nowhere mode in the very near term. But until we see further evidence that the selling is over we need to continue to proceed with caution. KEY EARNINGS REPORTS Companies reporting earnings today (October 28) include: ALU.PA, NSU.DE, AN, CPN, CBOE, COH, CVX, XOM, GT, HSY, HUN, LM, MA, PSX, RCL, WY, and XRX Companies reporting earnings Monday (October 31) include: AEGN, ALU.PA, AMKR, APC, CHKP, CNA, CTB, D, GGP, L, SO and WMB ADDITIONS TO WATCH LISTS: Best to watch market action for rest of the day and lay low into the weekend BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List None at this time DELETIONS FROM OUR WATCH LISTS: I want to wish everyone a restful weekend and will be back with my EB Watch List Update Report on Monday At your service, John Hopkins EarningsBeats