EB Watch List Update Report

Dear Members: MARKET NOTE: Dear Members: We are now just a few days from the installation of a new president into office. On the one hand this brings with it great uncertainty. On the other hand it's not like this is news; the market has been anticipating this for quite some time. In looking at the VIX it is higher by almost 5%. Believe it or not that is not so bad; the market had become much too complacent. So seeing traders a bit more fearful rather than ignoring everything going on around them is actually more bullish than we might think. That could change if the VIX suddenly explodes higher with the first level of important technical resistance just above 13. A close above that level could cause more worry and possibly some more serious selling. The action in the Dow is quite interesting today. It was down sharply earlier in the session and since then has regained the bulk of the losses. It has also worked its way back to its 20 day moving average, a level it has not closed below since early November. Something else worth noting. The bears have had plenty of opportunities to take the S&P lower but so far have had no success. And so far it has held all key technical levels once again which should be considered bullish. The bottom line is I'm more bullish today than I have been recently; the market is remaining resilient even in the face of an upcoming, major change in government. So I would not be surprised to see the S&P challenge its all time high of 2282 and we might even see the Dow take another shot at that 20,000 level. But as usual we need to be vigilant in case things turn suddenly. So as long as the S&P holds the 2260 level the bulls must be given the upper hand. KEY EARNINGS REPORTS Companies reporting earnings today (January 18) include: SCHW, C, FAST, GS, NFLX, NTRS, RJF, SLM. AMTD and USB Companies reporting earnings tomorrow (January 19) include: AXP, BK, BB&T, CHKP, KEY, MTB, MTG and SWKS ADDITIONS TO WATCH LISTS: First, we added a small group of stocks to the Candidate Tracker that are now available to members and removed some of the ones that have been on a while. This list will grow a lot over the next 30 days as thousands of companies report earnings. We added FRAN to the Watch List earlier today with additional information below. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - This stock is up 1.5% today as it tries to get back above its 20 day moving average. Though it has not yet made the strong move we would like to see it has held in with all the volatility in the market. It needs to climb back above the most recent high just above $109 to have a shot at reaching our target of $111.90. Mid Cap Watch List NUAN - This stock is sitting exactly on its 20/50 day moving averages at $15.40. So in a way it's a critical juncture for the stock. Would not like to see the 20 day cross above the 50 in any meaningful way as this would be bearish. If it can move and close back above $15.70 that would be bullish. Small Cap Watch List FRAN - We added this stock today at an entry price of $18.48 with a price target of $20.45 and a stop of any close below $18. Important information will be added to the site later today. TRUE - This stock continues to straddle its 20 day moving average. Still want to see it close above $13.08 which would be a positive. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats