EB Watch List Update Report

MARKET NOTE: Dear Members: It's very tempting to get more aggressive to the long side here with the market perking up this morning but we've still got two of the major indexes trading below their respective 20 day moving averages. Thus, getting aggressive ahead of what is being billed as a major health care bill has to be considered as risky. For a long time the 20 day served as major support on all of the major indexes. Now it's major resistance. Thus it makes sense to wait and see if the bulls can work their magic once again. Then there's the VIX. For most of the past four months its traded below or near its 20 and 50 day moving averages while moving above the 200 day only once, and that was very brief. Now its looking like it could retest the 200 day on any bit of bad or unexpected news and that would likely spook traders. These are just a few things that have gotten my attention at the moment. In fact, if you look at the trade alerts that are now active, they are having a very difficult time making any move to the upside. Perhaps they are just consolidating but any pick up in selling would likely take them lower as well. This is why we need to keep very tight stops here, "just in case." Right now the NASDAQ is the one index back over all key technical levels. Perhaps that is a signal that the worst is over with tech stocks ready to move the market higher. But we could also just be seeing some bargain hunting. Bottom line at the moment: I don't see any reason to deploy more capital as long as the S&P remains below its 20 day. Should that change then we can revisit. It got as low as 2336 the other day so that is now support. The 20 day is currently at 2360 so that is now resistance. "Wait and See" makes a lot of sense right now. KEY EARNINGS REPORTS Companies reporting earnings today (March 24) include: There are no key earnings reports due out today Companies reporting earnings Monday (March 27) include: RHT and SNX ADDITIONS TO WATCH LISTS: Hope to be updating the Candidate Tracker today and when done we will have 200 stocks on the list. Not going to add any new alerts at this time. Will revisit as appropriate. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List ARNC - Stock is flat and must clear its 20 day moving average, now at $27.21, if the bulls hope to regain the technical advantage. XL - Stock continues to hug its 20 day moving average. Would still would like to see it clear $40.47 which would be very bullish. Mid Cap Watch List APO - Stock continues to consolidate 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 $49.90. 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. I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats