EB Watch List Update Report

MARKET NOTE: Dear Members: What an interesting day and point in time. Everyone knows that there's a big health care vote tonight. What we don't know is how the market will react. On the one hand the bulls will argue that if they can get round one of the health care bill out of the way it will clear the path for some other reforms that could benefit the market. The bears will argue that this has already been taken into consideration, no matter the outcome. This is where technical analysis comes in handy as the charts have a way of taking everything into consideration. At this moment all of the major indexes remain below their respective 20 day moving averages; remember, former support levels have now become levels of resistance. The VIX remains above both its 20 day and 50 day moving averages; traders have one finger on the sell button. That's different than what we have seen the past 4+ months when stocks were gobbled up on any pullbacks. I'm really keeping my eye on the S&P; can it close back above its 20 day, now just over 2361? If so then the bulls might regain the momentum. However, failure to clear that level could embolden the bears further. Let's remember that while we could see the market perk up if the health care bill is passed we could just as easily see a "sell the news" scenario develop. This is why we need to be careful here until we get through today and see what things look like in the morning. KEY EARNINGS REPORTS Companies reporting earnings today (March 23) include: ACN, CAG, GME and KBH Companies reporting earnings tomorrow (March 24) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: We have now identified a batch of stocks that will be added to the Candidate Tracker, hopefully by tomorrow. Will keep you posted. Not going to add any new alerts at this time; this is a very precarious spot. Will revisit tomorrow. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List ARNC - Stock is up slightly but until it moves back above its 20 day moving average, now at $27.26, it will remain technically challenged. XL - Stock has perked up some and still would like to see it clear $40.47 which would be very bullish. Mid Cap Watch List APO - Stock is up slightly and a close above $23.71 would be very bullish. Small Cap Watch List CBM - Stock continues to consolidate above its 200 day moving average but I'm not crazy with the action therefore PLEASE NOTE: WE ARE CHANGING OUR STOP TO ANY INTRA DAY MOVE BELOW THE 200 DAY, NOW AT $49.91. This will help minimize any losses in case it moves lower. A close above $51.30 would be bullish. DELETIONS FROM OUR WATCH LISTS: None at this time. At your service, John Hopkins EarningsBeats