EB Watch List Update Report

Dear Members: MARKET NOTE: Very interesting morning. First, the ADP jobs report and the weekly jobless claims showed that it's getting tougher to find job seekers. Next, the US dollar has pulled back as well as treasury yields. Next, ISM services beat expectations. Next, gold is soaring as the market looks to hedge against potential inflation. At the same time, equities are pulling back as traders are trying to figure out what all of this means for stocks. Making it even more interesting; the VIX is flat after falling earlier in the session. In other words, even though there have been some pretty big surprises this morning, traders are taking it all in stride. I want to point out that all of the major indexes remain above key technical levels on this pullback. So no damage yet. Tomorrow we'll get the monthly non-farm payroll report which almost always has an impact on the market. With today's ADP report weaker than expected, traders will be watching to see if the same thing happens with the jobs report or if it comes out stronger than expected. What we'll want to watch for today is to see if traders start buying on the dip. That's been the pattern of late. Or, will the selling accelerate into the close? From my perspective, some additional selling would be just fine as it would present even better buying opportunities. But I also wouldn't be shocked to see some losses trimmed by day's end. Right now the first key level of technical support on the S&P is just above 2250 with price support at 2245. To the upside, 2277 remains resistance. We'll see if the bulls can do what they've done time and again the past few months; maintain the momentum just when everyone thought they were about to lay down. KEY EARNINGS REPORTS Companies reporting earnings today (January 5) include: STZ, TCS and MON Companies reporting earnings tomorrow (January 6) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: First, please note that we will be updating the Candidate Tracker soon. Also, once earnings season starts next week, we will be tracking reports on thousands of companies over the next several weeks and adding those who beat earnings expectations. So, lot's of new potential trading candidates during the month of January/February. We added NVDA to the Watch List yesterday with more on the stock below BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock was added yesterday with initial entry at $104.25 with a second entry at $102 (which was hit today) and a price target of $111.90 and a stop loss of any intra day move below $99.35. So far today the stock has dipped slightly below its 20 day moving average which is right near $102. So would like to see it close back above that level as a close below could make it vulnerable to more selling. We've got a tight stop in place just in case it continues to move lower. None at this time Mid Cap Watch List None at this time Small Cap Watch List DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats