EB Watch List Update Report

Dear Members: MARKET UPDATE The major indexes are higher today, particularly the Dow, with the S&P and NASDAQ continuing to be stretched while the Dow plays catch up as it hits a new all time high. Worth noting is that the bulk of the move higher of late is directly the result of some strong earnings. For example, Boeing is up over 7% with AT&T and AMD both up over 4% on their earnings reports. Absent those stocks, the market would likely be flat or even negative. This is good news for us as we're seeing lots of strong moves that will turn into nice opportunities once the initial excitement that goes along with solid earnings wanes some and when we start to see profit taking kick in. Remember that our philosophy is to avoid holding stocks into earnings reports because there is no way of knowing how the market will respond to numbers. For every stock that moves higher after strong numbers, there's another stock that moves lower when they disappoint. So instead of taking the risk that goes along with holding into earnings we like to wait for pullbacks to key price or technical support levels on those stocks that have become attractive to traders. A perfect example is Boeing, gapping up today on heavy volume on a strong earnings report. It makes no sense to chase the gap because like every other stock in the universe, it will pullback, more a matter of when than if. In looking at a chart it could easily pullback to the top of yesterday's gap which is near $212. That's $17 lower than its peak so far today and at a level that would keep its uptrend in tact. This will be the case with many stocks once earnings season starts to wind down. Remember as well that as earnings season matures the results of overall earnings, including forward guidance, are then "built in." This in turn sets up for profit taking which I'm confident we will see in the not too distant future. Bottom line: we should see some very nice trade set ups over the next few weeks. KEY EARNINGS REPORTS Companies reporting earnings today (July 26) include: Before Market Opens: ALK, ANTM, BAX, BA, BCO, KO, GLW, DHI, DTE, FLIR, F, GD, GSX, HSY, HES, HLT, IR, LEA, NDAQ, NSC, NOC, OC, ROK, R, SLAB, SIX, SYT, and TUP After Market Closes: ABX, BWLD, DFS, DRE, EFX, ETH, FFIV, FB, FORR, GILD, GC, HST, IMAX, KNX, KN, LRCX, LVS, LM, NTGR, NTRI, ORLY, PYPL, PSA, RJF, RGC, RCII, SU, TER, TSCO, VRTX, WM, WHR, WFM and XLNX Companies reporting earnings tomorrow (July 27) include: Please note that I am in travel mode today so will update key earnings reports for tomorrow later today. Before Market Opens: After Market Closes: ADDITIONS TO WATCH LISTS: Please note we will be updating the Candidate Tracker between today/tomorrow with some new trading candidates. Will keep you posted. 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 None at this time DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeats