EB Watch List Update Report

MARKET NOTE: Dear Members: We're witnessing first hand the difficulty the bulls are having getting traders excited, something they've been quite good at for quite some time. The difficulty started especially after the major indexes fell below their respective 20 day moving averages last week and traders turned more defensive. We've also seen the fear meter rise with the VIX now at levels not seen since early November. You may have noticed the selling started before the failed vote on health care Friday. In other words, traders knew something was amiss so started taking profits before the non-vote took place. One could argue the market is holding up fairly well in spite of Friday's developments but we've seen more technical damage today with the S&P now back below its 50 day moving average earlier today, a level it has not been below since November 9. So that nice momentum the bulls held for four months has now been turned over to the bears. The bulls do have an opportunity to stop the bleeding here; the S&P is well off the low of the session as it has moved back above its 50 day. The one good thing about the market is this; traders almost always care about what's next, not what has already happened. So even though health care has been put on the back burner, traders are already trying to assess the likelihood of other initiatives that could boost the market. Still, our best course at the moment is to let the charts guide us, and right now the charts are flashing caution. Maybe one thing the bulls have going for them is the market is getting closer to being oversold. It's not there yet but it won't take much more selling for the Dow and S&P to be technically oversold. The S&P got as low as 2322 this morning so that is now the new near term support. Should that go then we could see 2300 come into play pretty quickly. To the upside the bulls first need to close the S&P above the 50 day, now at 2332 then clear the 20 day, now at 2356. In other words, they have some work to do and until we see some progress it is best to lay low for a while. KEY EARNINGS REPORTS Companies reporting earnings today (March 27) include: RHT and SNX Companies reporting earnings tomorrow (March 28) include: CCL, DRI, PLAY and MKC ADDITIONS TO WATCH LISTS: Please note we have added over 70 stocks to the Candidate Tracker that are now available for your review. We still need to add the chart links which will be done later today. Some of these stocks could become trading candidates that get added to our Watch List and we will keep members posted. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List ARNC - Stock has rebounded some from the low of the session. We have a stop of any close below $26.07. XL - Stock has recovered nicely after holding its 50 day moving average earlier in the session. Would like to see the stock close back above its 20 day, now at $40.. Mid Cap Watch List APO - Stock tested its 20 day moving average earlier in the session and so far has held. 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. We will keep our stop at any INTRA DAY move below the 200 day, currently at $48.89. 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 unless a stop loss is hit. At your service, John Hopkins EarningsBeats