EB Watch List Update Report

MARKET NOTE: Dear Members: The bulls continue on their merry way with all of the major indexes higher. The move today comes in anticipation of further clarification of a tax proposal which has led to investor optimism. This can be seen in the VIX as well which is down 1.5% as it remains in striking range of its all time low. As a result of the recent move higher, the NASDAQ is now technically overbought. The Dow and S&P aren't far behind. Though the headlines have pointed to potential tax reform as a big reason for the move higher the real reason is more likely that earnings have been coming out strong, especially from some highly visible companies that have had a positive impact on the overall market. While the bulls must be respected here we must balance the renewed optimism with overbought conditions; the reward to risk is not what it was just a week ago. In fact one could argue this would be a good place to lock in profits instead of chasing the rally. The bulls would still like to move the S&P over its all time high of 2400; it's now within a meager 7 points. So that's a key level to watch as earnings season progresses. But let's remember that an awful lot of "positives" have already been factored into the market; there's really not much margin for disappointment. Thus it makes sense to maybe take a pause here, see if the S&P stalls at or clears 2400, before taking on additional long positions. KEY EARNINGS REPORTS Companies reporting earnings today (April 26) include: ALK, AMGN, BAX, BA, BCO, SAM, BWLD, CHDN, CTXS, CS, DLB, DPS, DTE, EFX, ETH, FFIV, FCAU, FISV, FLIR, FORR, FBHS, GD, GSK, GG, GRA, HSY, HES, IR, LVS, LEA, LM, NBR, NDAQ, NTGR, NEU, NSC, NOC, NTRI, ORLY, OSK, OC, PYPL, PAG, PEP, PG, PSA, RGC, STX, SCI, SLAB, SIX, SJW, SONS, SU, TER, TSCO, TWTR, VLY, WRE, WM, WYN and XLNK Companies reporting earnings tomorrow (April 27) include: AFL, ALXN, ALGN, ALLY, GOOGL, AMZN, AAL, AMT, AMKR, ATHN, AVT, BIDU, BWA, BSX, BMY, BC, CAA, CELG, CERN, CHKP, CVEO, CME, COHU, CMCSA, CTB, CTS, CUBE, CY, DPZ, DOW, DX, ELLI, EXPE, STAY, FICO, FLEX, F, GNRC, GWB, HLS, INTC, IP, JCI, KKR, KLAC, LLL, LAZ, TREE, MMC, MGM, MSFT, MHK, PH, PJC, POT, RDN, RTN, RS, SIRI, SKYW, SWKS, LUV, SBUX, SYNA, TCO, TZOO, TRMB, UA, UNP, UPS, VRSN, VRTX, VC and WDC ADDITIONS TO WATCH LISTS: We added NOV and NVDA to the Watch List yesterday with more details below. Also, please note that we will be updating the Candidate Tracker, including fresh trading candidates, between today and tomorrow and will let you know when complete. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NOV - AS A REMINDER. We have determined that this company will be reporting earnings prior to the open on Thursday. Accordingly, we will be removing from the Watch List by tonight's close as we are hesitant to hold stocks into earnings. In the meantime the stock is higher today so don't hesitate to take profits on any move higher. NVDA - Stock is fairly flat but remains above all key technical levels. A close above $106.07 would be bullish. Mid Cap Watch List None at this time Small Cap Watch List None at this time DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeat