EB Watch List Update Report

Dear Members: MARKET UPDATE The market is picking up where it left off last week with all of the major indexes lower. The one difference this week - and it's not insignificant - is that stocks are now in oversold territory. For example, stochastics on all of the major indexes are near 5 with RSI's in the 30's on the NASDAQ and S&P. And the Dow has worked its way down to its 50 day moving average - for the first time in over 3 months - and so far has held. The VIX is down slightly as traders begin to wonder if it's time to dip their toes into the market. I'm certainly not seeing an all clear signal but for the first time in a while the market looks like it could be getting ready for an oversold bounce. The S&P got as low as 2417 earlier in the session so that is now support. So if that goes we could see more selling with 2400 the next key level of support. To the upside, 2440 is now resistance. Without question the selling could pick up as the day/week progresses. But as the market gets more oversold we could see buying interest pick up. It's still a time to remain very cautious; cash is king. But the more selling the better the risk/reward comes, particularly on those stocks that have reported strong earnings and have pulled back to key price/technical support levels. KEY EARNINGS REPORTS Companies reporting earnings today (August 21) Before Market Opens: None After Market Closes: BHP Companies reporting earnings tomorrow (August 22) Before Market Opens: KIRK, MDT and TOL After Market Closes: CREE, INTU, LZB and CRM ADDITIONS TO WATCH LIST We added LYV to the Watch List this morning with more information below BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List LYV - We added this stock to the Watch List this morning at an entry price of $38.79 with a price target of $42 and a stop loss of any close below the 20 day moving average. Mid Cap Watch List SGMS - Stock is down slightly as it continues to try to hold its 20 day moving average as it continues to consolidate. Small Cap Watch List None DELETIONS FROM THE WATCH LIST None at this time I want to wish everyone a restful weekend and will be back Monday with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats