EB Watch List Update Report

Dear Members: MARKET UPDATE In Friday's update I pointed to two important numbers to watch for. First, on the S&P, it needed to clear its 20 day, currently at 2427. And on the NASDAQ I pointed to key resistance just above 6170. So far today both the S&P and NASDAQ are trading back above their respective 20 day moving averages. Traders are back to being relatively calm with the VIX down slightly after the spike we saw late last week. But it's still just above its 20 day moving average, so not showing traders plan to be overly aggressive in the near term. This week brings with it the beginning of Q2 earnings season with both JP Morgan and Wells Fargo on tap to report their numbers before the bell on Friday. Then starting next week we will start getting load of earnings as thousands of companies report their numbers over the next several weeks. In looking at the S&P it did manage to hold right at its 50 day moving average on both Thursday and Friday of last week. So we could well find that traders are willing to give the benefit of the doubt at this moment to the bulls, especially with earnings season about to begin. We might find that the S&P will trade in a fairly narrow range of 2415 to the downside and just above 2450 to the upside. So the risk to reward at this point is fairly even; can't see any reason to be either aggressively long or short here. Better to tread lightly and see if the S&P either breaks out or breaks down while holding on to some cash for better opportunities. KEY EARNINGS REPORTS Companies reporting earnings today (July 10) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (July 11) include: PEP - Before market open ADDITIONS TO WATCH LISTS: Will let members know if spot any high reward to risk trading candidates. Mostly in a wait and see mode for the moment. 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 TGI - Stock is down 1.5% today after a nice move higher on Friday. A close above $32.50 would be bullish. PLAY - Stock is up slightly and a close above $65.36 would be bullish. DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeats