Dear Members: Market Update: Whenever the VIX moves above all key technical levels there's a decent chance something is brewing and we're seeing that today with all of the major indexes lower. All of the major indexes have also tested their respective 50 day moving averages this morning, a key technical level all the way around. So traders have an opportunity to buy on the dip here right near key technical support. But the question is, will they? It's not helping that government bond yields are falling with the 10 year treasury note now at 1.86%, a level not seen since November, 2016 as traders opt for safety. Since the S&P is a good gauge for the overall market we'll want to keep an eye on it and see if it can hold its 50 day, currently at 2927. It got as low as 2914 this morning before bouncing some. It's not yet technically oversold - it's getting close - and another decent day of selling would likely do the trick. There are definitely opportunities here - stocks are cheaper than they were when the S&P was 100 points higher. But the challenge is will any bounces hold? Only if traders in unison decide the worst of the selling is over, which may be the case. But until that is confirmed best to be extremely cautious and picky here. Companies reporting earnings today (August 1) Before Market Opens: AEE, ARNC, BIP, CBOE, CVX, CNK, XRAY, ENB, ESNT, XOM, RACE, FTS, HRC, HMC, IMO, ITT, LYB, NWL, NBL, PNM, POR, QSR, STX, SEE, SRE, S, TU, VST and WPC After Market Closes HE Companies reporting earnings Monday (August 5) Before Market Opens: ATH, CNA, JEC, KMPR, LIN, L, ON, TSN, UNVR and WEC After Market Closes: ANSS, CIB, BKH, BHF, BWXT, CZR, CBPO, XEC, CLR, DEI, PODD, IFF, KLAC, RAMP, MAR, OUT, O, STE, TTWO, UGI, WWD and WPX ADDITIONS TO WATCH LIST Like I pointed out above; stocks are cheaper here but they could get even cheaper. Also any bounces could be short-lived. Accordingly we should be VERY selective here with VERY tight stops. We saw both CSCO and DG close below our stops in just a few days. Never pleasant but look at CSCO today, down another $2.50 from our stop even though it looked like it was going to recover yesterday, then the tariff news hit. We will keep you posted on any new additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List DG - Stock closed below our stop level so is being removed from the Watch List. Medium Cap Watch List PRSP - Stock had been consolidating fairly well but is down today by over 2.5% and back below its 50 day, currently at $23.15. So needs to close back above that level to get back on track. As a reminder our stop is any CLOSE below $22.50. Small Cap Watch List PRGS - Stock is going along for the ride lower along with the rest of the market. It moved below our stop earlier in the session before bouncing some. If the stock CLOSES below $41.25 it will be removed from the Watch List. In the meantime it would be best if the stock could at least close back above its 20 day, currently at $42.21. Deletions from Watch List DG At your service, John Hopkins EarningsBeats