EB Watch List Update Report

Dear Members: MARKET UPDATE If you were looking for an example of why it is nearly impossible to short this market for any extended period of time today could be it. Just last night it was reported that North Korea had launched a missile towards Japan, futures immediately tanked, and the bears were feeling this could be the time when the market finally crashed. Except what we saw was some early selling with all or most of the losses regained in the major indexes. The VIX showed some early nervousness as well as it spiked over 14 and now it is well off the high of the session as it has moved back below its 20 day moving average. In other words, early worries have mostly disappeared. The recovery in stocks comes in spite of gold spiking dramatically on yesterday's news and with government bond yields at levels not seen since November of last year with the ten year treasury note touching 2.09%. In other words, there are signs that traders should be abandoning stocks but they aren't. Instead, we saw quite a willingness to jump in on the long side on the early selling. Where it gets tricky is what I mentioned yesterday; right when stocks move up to key technical levels we see profit taking. So we continue to see whipsaw trading; no major damage to the downside but so far the bulls failing to clear key technical levels. Of course that could change but it hasn't yet. Thus, unless you are fortunate enough to catch the bottom of the day, it's risky to jump in on the long side. So what's a trader to do? Probably the best course right now is to lay low, not worry about missing out on a rebound and wait for even better opportunities. In that respect, nothing has changed from yesterday. We need to see the S&P CLOSE above its 50 day moving average, currently just shy of 2551. Also wouldn't hurt if the NASDAQ could CLOSE above 6290. That could signal the selling is over and stocks are ready to resume a move higher. However, until then, it can be rough on your pocketbook to get aggressively long. KEY EARNINGS REPORTS Companies reporting earnings today (August 29) Before Market Opens: BMO, BNS, BBY and HAIN After Market Closes: HRB Companies reporting earnings tomorrow (August 30) Before Market Opens: ADI, BOBE, CHS, FRO and VRA After Market Closes: BOX, DRYS and FIVE ADDITIONS TO WATCH LIST Will let you know if are any new alerts BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List LYV - Stock is flat as it continues to consolidate. A close above $39.79 would be bullish. NVDA - Stock has recovered early losses and currently remains above all key technical levels. Like to see it close back above $165.80. Mid Cap Watch List SGMS - Stock remains in consolidation mode and so far remains above all key technical levels. 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