EB Watch List Update Report

MARKET NOTE: Dear Members: The bulls can point to two new milestones today as both the Dow and NASDAQ have hit record highs. The S&P got close but once again has come up short. Worth mentioning is the NASDAQ is very stretched here with stochastics near 98 and a RSI at 70, a combo that sooner or later will require some selling to let some steam out of tech stocks. The VIX continues to show that traders are calm right now; US stocks continue to have a lot of investment appeal. The inability of the S&P to clear 2300 shows how key resistance can scare traders away; no one wants to buy at the top. But its hard to imagine the overall market climbing significantly while 500 key stocks remain stuck. Now that the NASDAQ and Dow have made new highs what might be next? In looking at the NASDAQ 2700 seems a reasonable next goal while 20,200 is a nice round number on the Dow. Perhaps this would generate additional excitement and allow the S&P to put in a new high. We should remember that when the market is shining it is easy to forget that pullbacks do happen. In fact, given the very overbought status of the NASDAQ and the difficulty the S&P is having clearing 2300, this would be a good time to be very patient and not chase, waiting for better opportunities. If the S&P closes above 2300 then maybe we rethink. And let's continue to use the 20 day moving average, now at 2280, as the first line of support on any selling, knowing a move below that level could be a near term cause for concern. KEY EARNINGS REPORTS Companies reporting earnings today (February 7) include: AKAM, ARMK, ADM, AIZ, BWLD, CAH, EMR, GM, GILD, ICE, KORS, MCHP, MDLZ, MOS, NUAN, ORLY, PNRA, PAG, SAVE, TTWO, TEN, TDW, DIS, WCG and ZG Companies reporting earnings tomorrow (February 8) include: ALK, AGN, BVSN, CG, CTSH, DNB, EFX, EXC, FISV, GSK.L, GT, GRUB, HSIC, HUM, LVLT, OC, PRU, SIEMENS.NS, SU.TO, TWX, TRMB, GRA and WFM ADDITIONS TO WATCH LISTS: We will be updating our Candidate Tracker soon with lots of fresh trading candidates on companies that beat earnings expectations. Will keep you posted. 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 JBL - Consolidation continues with resistance at $24.50. Clearing that level would put the stock in position to rise further. Small Cap Watch List TRUE - Stock got as high as $13.85 yesterday so this is a level it needs to clear to move a step further to our target of $14. JKS - Stock has been consolidating for the past week with the next level of resistance now at $14.86. If it can close above that level then $15 could come into play. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats