EB Watch List Update Report

MARKET NOTE: Dear Members: Yesterday looked like the bulls were going to take charge with everything moving along nicely. Then the minutes from the last FOMC meeting came out and traders headed for the exits with all of the major indexes reversing to the downside. Now today traders are wondering if they might have overreacted with stocks back in green territory. The VIX took another shot at its 200 day moving average today before reversing and is now down over 6%. Talk about volatility! This tells me traders are really on the fence here. On the one hand stocks have held up fairly well, even with some of the uncertainty swirling around out there. On the other hand we keep seeing the Dow and S&P struggling to make any progress. In fact since they hit their respective all time highs they've struggled to gain any traction even though the NASDAQ just recently hit another all time high. It could be that traders are willing to hang in until earnings season kicks in starting next week. In other words, traders aren't willing to over commit capital to the long side but are willing to wait a few weeks to see if earnings come in as strong as expected. If this turns out to be the case then we could simply consolidate for a while. Right now the S&P is exactly on its 20 day moving average; indecision at its best. For now we'll want to watch and see if the 20 day on the S&P holds. It's currently at 2359. If that goes then the next CRITICAL level of support is at at the 50 day, currently at 2345; that is a level the bulls have held for 5 months now. If that goes the bears will gain the technical advantage and selling could intensify. To the upside the S&P got as high as 2378 tomorrow so this is a level the bulls hope to revisit. KEY EARNINGS REPORTS Companies reporting earnings today (April 5) include: BBBY, MON and RAD Companies reporting earnings tomorrow (April 6) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: We added EXAS to the Watch List yesterday with an update below BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List SRCL - Stock is up slightly as it continues to move back above its 200 day moving average, currently at $82.82. A close above that level would be bullish. Mid Cap Watch List APO - Stock hit its price target of $25.68 this morning so is coming off the Watch List. GREAT TRADE! Small Cap Watch List EXAS - This stock was added to our Watch List an an initial entry price of $23.04 with a second entry on a pullback to $23.50 which was hit yesterday. Price target is $25 and stop loss is any INTRA DAY move below the 20 day moving average which is currently at $22.08. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeat