EB Watch List Update Report

MARKET NOTE: Dear Members: This was not the way the bulls hoped to start a new trading day and week and with a new president now at the helm. However we're seeing all of the major indexes lower this morning as all of the hoopla associated with the swearing in ceremony on Friday is now over and it's back to business as usual. Back to business as usual means lots of earnings coming up this week in the face of a major transition. The VIX is higher by over 8% as the market begins to assess what the change in the Administration might mean to the market. The recent theme we've seen developed of late - avoid the blue chips and concentrate more on tech stocks - continues this morning with the Dow now trading back below its 20 day moving average, the NASDAQ remaining above all key technical levels and the S&P sitting just below its 20 day moving average. We're seeing some flight to safety this morning with gold climbing sharply and government bond yields lower. So traders are doing some hedging for sure as they try to figure out what lies ahead with a new Administration now in place. This week we're going to get earnings reports from some very big names. McDonald's already reported this morning and is well off its low of the session. So while the market is weak this morning traders are likely to wait and see what overall earnings look like before placing big bets either on the long or short side. In looking at the S&P support continues to be right around 2262 while resistance remains at that all time high of 2282. It doesn't look like we'll be seeing that all time high today but more important for the bulls is to continue to hold at the 20 day, something they've done successfully or for well over two months now. With so many earnings reports coming out over the next few weeks I believe any selling will be short lived in the very near term and until traders can assess the overall earnings picture. KEY EARNINGS REPORTS Companies reporting earnings today (January 23) include: BOH, HAL, MCD, YHOO and ZION Companies reporting earnings Tuesday (January 24) include: MMM, AKS, BABA, CNR.TO, COF, GLW, CREE, DHI, DFS, DD, FITB, ISRG, JNS, KMB, LMT, NAVI, STX, STLD, SYK, TXN, TRV, VZ and WAT ADDITIONS TO WATCH LISTS: Will let you know if I spot any high reward to risk trading candidates from our Watch List BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock is holding up decently today in the face of the overall selling. As long as it continues to hold above all key technical levels it could move higher. Mid Cap Watch List NUAN - Stock is flat as it remains above all key technical levels. Would love to see it close back above $16 which would be bullish. Small Cap Watch List None at this time TRUE - Stock is down by 1.5% today but really needs to hold its 50 day moving average, now at $12.56. A close below that level could spell trouble. Accordingly, and to help reduce risk, we are CHANGING OUR STOP to any close below the 50 day moving average. If it closes below that level we will remove TRUE from our Watch List. DELETIONS FROM OUR WATCH LISTS: At your service, John Hopkins EarningsBeats