EB Watch List Update Report

MARKET NOTE: Dear Members: The bulls have been in control of the market for a long time now with confidence that sooner or later they would be able to take the S&P above 2300. That patience and persistence is paying off today with all of the major indexes in record territory that includes the NASDAQ above 5700 and the S&P over that very elusive 2300 level. The VIX continues to show traders are quite comfortable owning stocks. In addition, bond yields are higher as concern about safety is not as great today. The market got a boost on a headline that an announcement about a revamped tax plan would be forthcoming. This apparently got some traders off the sideline and thus records on the major indexes. The nice boost today puts the NASDAQ back in overbought territory with the Dow and S&P not that far behind. But momentum can be a powerful thing, especially if traders believe this could be the beginning of another leg higher. Of course that is the key; will the gains hold into the close? If so then traders will try to figure out what comes next; there's no history to gauge what comes after 2300. I think a reasonable target would be 2325. We should keep in mind that major levels of resistance take time to clear and then hold. So some profit taking at these levels would not be a total surprise, especially with the NASDAQ technically overbought. But at the moment there's a strong bid under the market which could continue to take the market even higher. KEY EARNINGS REPORTS Companies reporting earnings today (February 9) include: AGU.TO, BWA, CSL, CERN, KO, CMI, CVS, DTE, DNKN, EXPE, GCI, JCOM, K, KMPR, KKR, MAS, MHK, NCR, NWSA, NLSN, NVDA, OXY, RAI, SW.TO, GLE.PA, SON, TARO, TCO, T.TO, TRI.TO, TWTR, VRSN, VIAB, WU, YELP and YUM Companies reporting earnings tomorrow (February 10) include: CPN ADDITIONS TO WATCH LISTS: The vast majority of highly visible companies have now reported their earnings. We have found that it often makes sense to wait a few weeks to pursue those companies that beat earnings expectations, especially those that gap up hard on strong volume once their numbers are released. In other words, chasing a stock after it has already made a strong move higher can be risky. Because thousands of companies have reported earnings it's an arduous process to comb through and select the "best of the best", those companies that beat both bottom and top line numbers and have decent looking charts. This is what has delayed us some in presenting more stocks on our Candidate Tracker to members but we hope to complete that soon and will let you know when they are available. Should be some good ones! 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 - Stock is up 2% as it tries to close in on $25. Our price target is $25.55. However, the first big hurdle is the all time high of $25.14 from December 16. This move higher is also coming with the stock now technically overbought. We'll want to see how it closes which might give us some better clues as to what might come next. Small Cap Watch List TRUE - This stock is struggling even with the market higher today. It's resting exactly on its 20 day moving average of $13.04. Our current stop is a close below $12.40 but we are changing that to any close below the 50 day moving average, currently at $12.79. JKS - Stock is up slightly as it failed to clear the most recent high of $14.72. It would be even more bullish if it closed back above its 20 day moving average which is now at $14.80. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeats