EB Watch List Update Report

Dear Members: MARKET UPDATE If you go back three months you will see that the S&P is pretty much where it was in mid to late June. In between we saw a record high of 2490. We also saw the S&P get as low as 2417 when it looked like the market could be in store for more selling. But, in fact, traders saw that pullback as an opportunity to buy stocks at reduced prices and now we've got all of the major indexes above all key technical levels as we are now well into September, historically a rough time for stocks. At the same time we've seen the ten year government bond yield hit 2.03% yesterday with gold hitting levels not seen in a year. We have the $USD at a level not seen since January of 2015. The weak $USD, low bond yields and higher gold prices are telling us investors are nervous; they are looking for alternative places to put their money. Yet stocks are in solid shape. And my best guess at why this is so? Earnings. With a few exceptions, earnings for Q2 were outstanding. And so far there's no indication that will be changing when companies start reporting their numbers for Q3 starting in about 30 days. In fact, maybe with the exception of banks, many companies benefit from lower interest rates and a lower $USD, so earnings could end up being even better than expected. Layer on to this the potential for some tax reform, even if it ends up being not everything the market is looking for, and stocks continue to look attractive. Maybe this is why the NASDAQ got to within 10 points of its all time high just last Friday. And it's why trying to short stocks with any great success for any sustained period has become next to impossible. So the market action needs to be respected, at least unless we see something that shows the bears have firmly regained control, something they have been unable to do for a very long time now. KEY EARNINGS REPORTS Companies reporting earnings today (September 8) Before Market Opens KR After Market Closes: None Companies reporting earnings monday (September 11) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH LIST Going to continue to be selective here and will let you know if there are any new additions to the Watch List BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List LYV - Stock is up by 1% with our target remaining at $42. NVDA - Stock is struggling to hold its 20 day moving average. Would like to see it show some life and for sure hold the 50 day, currently at $162.21. Mid Cap Watch List SGMS - Stock is up over 1% and a close above $36.20 would be bullish. KORS - Stock is flat and remains above all key technical levels. A close above $42.81 would be bullish. Small Cap Watch List None DELETIONS FROM THE WATCH LIST None at this time I want to wish everyone a safe and restful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats