EB Daily Market Report - Friday, January 13, 2023

Dear Members.

Today will be an abbreviated report.

As a reminder, Tom Bowley will be leading a virtual event on Saturday morning at 10:00am ET to discuss the EB.com platform. We've developed a large list of ChartLists designed to help our members find high quality trades and investments. On Saturday, Tom plans to show everyone why these ChartLists were developed, what they are, and how you can use them to find better trading opportunities. We've been mired in a a nasty bear market for most of the last year, so it's been difficult to use them for profit. Instead, we've been in a market where we've needed to remain persistent in protecting our capital. Tom believes that's beginning to change. We'll need to grow more aggressive and Tom plans to show everyone how to do that on Saturday. We'll send out room instructions prior to the event and we'll record the event for those unable to attend live.

We can see by looking at the VIX, which is at a 52 week low, that traders have become more confident as evident by the buying on today's earlier pullback. Technically, the market has shown improvement with the NASDAQ back above both its 20 and 50 day moving averages while the S&P is trying to climb back above its 200 day, currently at 3981, almost exactly where it is at this moment. Also encouraging is the action in the big banks that reported this morning including JP Morgan which initially sold off some before gaining back early losses and moving into positive territory.

Next week we'll see earnings season pick up and then really kick into high gear the following few weeks. And, when everything is said and done, earnings are what matter the most so we're going to see if forecasts for doom and gloom come true or if companies as a whole beat expectations.

Let's keep an eye on how the market finishes today with an eye on that 3981 level on the S&P as a close above that level would be bullish. On the flip side, if we see heavy selling into the close we'll need to revisit next week.

At your service,

John Hopkins