EB Watch List Update Report

MARKET NOTE: Dear Members: What makes this market so tricky at this exact moment in time is all of the major indexes are at or below their respective 20 and 50 day moving averages. In addition, the VIX is above all key technical levels. The combination of the two makes it very difficult to get involved aggressively on the long side. Consider this. For many months traders considered the 20 and 50 day moving averages on the S&P to be solid support and levels to consider taking on positions. Now those levels have become resistance; areas to consider taking profits or even shorting, the opposite of buying on dips. The VIX is actually lower today but not before putting in a higher high before pulling back some. In addition, it needs to be pointed out that the 20 day has now dipped below the 50 day on the S&P, confirming the current weakness. This overall bearish action comes just as thousands of companies get ready to report earnings from Q1. It's also coming right at tax time as traders cash in to cover 2016 tax liabilities. This is one thing the bulls have going for them as the market seems to perk up once the tax deadline passes. So it would not be totally surprising to see some renewed interest in stocks as the week progresses, especially if we start to see a batch of earning's beats. But, we can't rely on "if's" to make smart trading decisions. We need to focus on what the charts are telling us which is a great deal of skepticism. To me it makes sense to remain in cautious mode unless the bulls are able to regain the technical advantage. That would include the S&P moving back above all key technical levels with the 50 day currently at 2353. To the downside we need to watch 2322 which represents the March 22 low. A move below that level could take stocks even lower. KEY EARNINGS REPORTS Companies reporting earnings today (April 17) include: DISH, LLTC, MTB, NFLX, VMW and YHOO Companies reporting earnings tomorrow (April 18) include: BAC, SCHW, CMA, GS, HBHC, HOG, IBM, ISRG, JNJ, KMI, LRCX, LVS, NAVI, PGR, SNV, UNH, GWW and YHOO ADDITIONS TO WATCH LISTS: Please note that as earnings season progresses we will be updating the Candidate Tracker and will keep you posted on additions and deletions. I will be more inclined to consider issuing trade alerts if the technical picture improves. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List EXAS - Stock was higher by over 3% earlier in the session as it neared resistance. A move above $24.42 would be bullish with our target remaining at $25. DELETIONS FROM OUR WATCH LISTS: None at this time At your service, John Hopkins EarningsBeat