EB Watch List Update Report

MARKET NOTE: Dear Members: On the surface the market looks just fine today with all of the major indexes higher as we begin a new trading day and week. Underneath the surface are a few things worth pointing out as traders get ready for the beginning of earnings season. The first big red flag to me is the VIX. It's higher today even with stocks higher. More importantly, it's back above its 200 day moving average; traders are buying reluctantly. In fact the VIX has only been above its 200 day twice since early November; like I said, a warning sign not to be ignored. Next, neither the Dow nor the S&P has been able to make any headway for almost two months. Virtually all of the buying of late has been in the NASDAQ; the market is not in sync here. I'm fairly certain the only thing keeping the market from pulling back more at the moment is earnings season which kicks off this week. This will be followed by thousands of companies reporting their numbers over the next few weeks. So traders seem willing to "wait and see" what the numbers look like, not willing to devote too much more capital on the long side but willing to hold off selling in droves until the earnings picture becomes clearer. But if there's any hint that earnings will come in below what are lofty expectations I think we could see significant selling. The S&P is currently above its 20 day moving average which is a positive. But to me the offset is the VIX, with traders having at least one finger on the sell button in case selling does pick up. To me this is a clear signal to be very cautious here. KEY EARNINGS REPORTS Companies reporting earnings today (April 10 include: There are no key earnings reports due out today Companies reporting earnings tomorrow (April 11) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: I am extremely reluctant to add any stocks to the Watch List at this time. Will let you know if that changes. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List SRCL - The stock closed slightly below its 20 day moving average on Friday so is being removed from the Watch List. If you continue to hold watch for a close back above the 200 day which is currently at $82.61 which would be a positive development. Mid Cap Watch List None at this time Small Cap Watch List EXAS - Stock is fairly flat for the session but continues to remain above all key technical levels. A close above $22.69 would be bullish. DELETIONS FROM OUR WATCH LISTS: We are removing SRCL from the Watch List as it closed below its stop on Friday At your service, John Hopkins EarningsBeat