EB Watch List Update Report

Dear Members: MARKET UPDATE In yesterday's update I pointed out that both the NASDAQ and S&P were technically oversold with the Dow moving right to an important support level that could lead to a bounce. We are seeing that bounce today. At the same time, the VIX is down 12% as it moves back below both its 20 and 200 day moving averages. So certainly traders are feeling more confident today. I'm looking at two key numbers today; 2454 on the S&P which represents the 50 day moving average and 6297 on the NASDAQ which represents its 50 day moving average. These levels are important because we'll be able to see if traders sell at key resistance levels. If so we might be looking at a near term top and could see selling resume. On the other hand, if the bulls can move the S&P and NASDAQ above those key levels then we could see further buying. From my perspective I would look at these key resistance levels as an opportunity to lock in profits. In other words, I'm not convinced that the market is ready to resume its move to the upside. This is why I will be watching these levels very carefully. KEY EARNINGS REPORTS Companies reporting earnings today (August 22) Before Market Opens: KIRK, MDT and TOL After Market Closes: CREE, INTU, LZB and CRM Companies reporting earnings tomorrow (August 23) Before Market Opens: AEO, EV, LOW and RY After Market Closes: HPQ, PVH and WSM ADDITIONS TO WATCH LIST None at this time BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List LYV - Stock has continued higher today and a close above $39.37 would be bullish. Mid Cap Watch List SGMS - Stock is up 2% as it finally makes its way back above the original entry price. A close above $35.05 would be bullish. Small Cap Watch List None DELETIONS FROM THE WATCH LIST None at this time At your service, John Hopkins EarningsBeats