EB Watch List Update Report

Dear Members: MARKET NOTE: Dear Members: We're now one day away from having a new president at the helm and so far the market is handling it just fine. The Dow continues to show signs of weakness but the NASDAQ is looking strong and so far the S&P is above all key moving averages. The VIX is fairly flat, sitting right between its 20 and 50 day moving averages. So more fear lately but that's not a bad thing. Yields on government bonds are higher today as Fed Chairwoman Janet Yellen indicated yesterday that more rate increases are likely. Believe it or not that's more of a positive today for the market than not. I believe the main reason the market is holding up in front of the change in the White House is earnings, plain and simple. Traders care more about earnings than just about anything else. Just last night Netflix beat earnings expectations and the stock is higher by over 5% today because traders liked what they saw and heard. And we're just at the very beginning of earnings season with expectations for decent numbers overall. The S&P continues to hover around its 20 day moving average. It's been doing that since the beginning of the year, even though the bears have tried to take it lower a few times. I've looked at options that are expiring on the SPY tomorrow and right now it looks as though the market makers would be satisfied to see the SPY settle somewhere in the 226 range by the close tomorrow. It touched that level earlier in the session before bouncing some. So perhaps their work has mostly been done. Of course we could see an emotional reaction to tomorrow's events; i.e., once the new president is sworn in. But for now the market seems in good shape even though the Dow has softened some. On the S&P 2262, the 20 day moving average, remains support. To the upside the bulls are hoping to take another crack at that all time high of 2282. KEY EARNINGS REPORTS Companies reporting earnings today (January 19) include: AXP, BK, BB&T, CHKP, KEY, MTB, MTG and SWKS Companies reporting earnings tomorrow (January 20) include: GE, LM, PG, RF, SLB and STI ADDITIONS TO WATCH LISTS: Will let you know if I spot a high risk to reward candidate BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - This stock is up by another 2.5% today and is back above all key technical levels. It still 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 up by over 2.5% today and is back above all key technical levels. Would love to see it close back above $16 which would be bullish. Small Cap Watch List FRAN - Stock has stumbled today and is down by 3.6%. We will keep our stop of any close below $18. TRUE - This stock is higher by 2% as it has pulled away from 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