EB Watch List Update Report

MARKET NOTE: Dear Members: In yesterday's update I pointed to some indicators showing strength in the overall market and that Apple's report could also impact the market. We saw a nice recovery yesterday afternoon and then this morning a nice pop in all of the major indexes though the S&P has turned slightly negative. For sure AAPL came through with a blow out earnings report with the stock up almost 6%. And we're seeing some calming of the nerves with the VIX well off of yesterday's highs as it looks to move back below all key technical levels which would favor the bulls. Part of the reason for the move higher today is a much stronger than expected ADP jobs report that has come just prior to the Fed's rate announcement later today. This in turn has put the brakes on gold and bond yields are higher on the prospect that the Fed will continue on its rate increase path. The market has gone from hating the prospects of rate hikes to seeing it as validation that the economic picture is strengthening; they don't want to go back to rate reduction mode. As has been the case for three months now, the bulls held the S&P right where they needed to yesterday at the 20 day moving average. It remains above that level today though well off the high of the day. We need to keep things in perspective here, especially considering everything that has happened since the recent election. One could argue that the market should be much lower here on increased uncertainty. But traders seem content to take more of a wait and see attitude with hopes of some more positive news that could take stocks higher. So as long as the bulls are able to maintain the momentum traders may be inclined to continue to allocate capital to stocks. We still have the Fed announcement later today and then the all important monthly non-farm payroll report on Friday. Both of these events could move the market. In the meantime 2274 is now support on the S&P and 2300, the all time high, remains key resistance. KEY EARNINGS REPORTS Companies reporting earnings today (February 1) include: ALL, MO, AMP, ADP, AVB, BAX, CRUS, D, FB, IR, JCI, LM, LNC, MPC, MET, OI, PBI, SIE.DE, SYMC and TSCO Companies reporting earnings tomorrow (February 2) include: AMZN, AMGN, BLL, BSX, CMG, CI, CME, COP, CY, DAI.DE, DLPH, DBK.DE, ETN, EL, IT, HBI, HRS, HAYN, IP, LAZ, MMC, MRK, NOKIA.HE, PH, PM, RL, RDSA.AS, RGLD, R, SIRI, TDY and V ADDITIONS TO WATCH LISTS: We added JKS to our Watch List yesterday with additional information below BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List NUAN - Stock has mostly been in consolidation mode for a month now. It really needs to hold above its 20 and 50 day moving averages both now near $15.70. $16.48 remains our target. Small Cap Watch List TRUE - Stock made a nice move yesterday and is higher today. $14 remains our target. JKS - Stock was added to the Watch List yesterday at an initial entry price of $13.90. It made a nice move into the close yesterday and today has pulled back slightly after moving higher earlier in the session. A close above yesterday's close of $14.32 would show progress and be bullish. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats