EB Watch List Update Report

MARKET NOTE: Dear Members: When the market is in a bullish mood it's very tough to take it lower. We're seeing that yet again with all of the major indexes trading near the flat line after the NASDAQ put in another record high earlier in the session. The non-stop move higher in the NASDAQ has been powered by some better than expected earnings from large cap tech stocks and tonight Apple will report its numbers which could end up being one of those events that defines where the market is headed in the near term. Right now expectations are high; AAPL is expected to hit it out of the park which could take the market even higher. But if AAPL were to unexpectedly disappoint that could be the catalyst the bears have been looking for to shave off some points. Facebook will be reporting its earnings as well, so another tech giant in the spotlight. In any event the NASDAQ is very overbought here, the Dow and S&P continue to tread water and earnings season is closer to ending than beginning. The VIX also continues to show a very calm trading atmosphere; traders are holding onto their stocks. So it's tough to make a case to get bearish here yet tech stocks are very pricey and blue chips are failing to make any progress. So there is some vulnerability here, but how much? The market is notorious for catching traders off guard, just when everything seems to be just fine. The VIX dipping below 10 for the first time since 2006 certainly caught my attention yesterday as it shows the masses believe stocks can only go in one direction at the moment, and that direction is higher. To me the big question at the moment is this; can the S&P clear 2400? If the answer is yes we could see another leg up. If it continues to stall here then traders could get impatient and we could see some selling. Since the S&P is so close to 2400 it makes sense to be patient here before taking on new positions. I do think Apple's earnings after the bell could be a defining moment because it's the largest Market Cap company in the world. Accordingly I'm going to hold off on any further alerts for today, gauge the reaction to the Apple and Facebook earnings and then go from there. KEY EARNINGS REPORTS Companies reporting earnings today (May 2) include: FLWS, AEGN, AET, AKAM, ALL, MO, APC, AAPL, ADM, AIZ, CZR, CGX, COH, COP, CNX, CMI, CVS, DVN, ETN, EMR, FBRC, FEYE, FSLR, GILD, GDDY, HBI, HCA, HLT, MA, MRK, MDLZ, MOS, NRG, PFE, PCG, PBI and WU Companies reporting earnings Tuesday (May 3) include: ALB, ADP, CAR, BCC, CG, CDW, CAKE, CNK, CRUS, CLX, CLR, DLPH, EL, FB, FRT, GRMN, HRS, HHC, HUM, IAC, ICE, KHC, LVLT, LNC, MFC, MET, TAP, NUS, NYT, PRU, RAI, SBGI, SO, SQ, TSLA, TWX, RIG, WMB and YUM ADDITIONS TO WATCH LISTS: None at this time BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock has pulled back after a nice move higher yesterday. It needs to close back above yesterday's high of $106.64 to resume its move higher. Mid Cap Watch List None at this time Small Cap Watch List GNC - Stock dipped below its INTRA DAY stop of $7.50 so is being removed from the Watch List. If you decided to hold watch for a close back above $7.80 which would be bullish. DELETIONS FROM THE WATCH LIST We are removing GNC from the Watch List as it moved below its stop loss level of $7.50. At your service, John Hopkins EarningsBeats