EB Watch List Update Report

Dear Members: MARKET UPDATE The monthly non-farm payroll report missed expectations by a bunch today, actually printing a negative number. Generally that would have caused market pain. Today? Not that much of a reaction, at least not yet. It's true that the unemployment rate moved lower to 4.2% and it looks like the market discounted the report due to the recent hurricanes. So some offset in the report with traders focusing on the good news and ignoring the bad news, very typical of today's trading environment. One has to wonder what it might take to spook the market. It's hard to tell since traders seem to now be oblivious to the threat of nuclear destruction, multiple natural disasters, interest rate hikes and horrific attacks like we saw in Las Vegas earlier in the week. Of course we have seen major corrections in the market when it is least expected and when no one thinks it is possible. Doesn't mean it will happen but even the possibility should be taken into consideration when fear in the market is non-existent and at a minimum calls for being more defensive. It's quite possible that traders are willing to wait and see what Q3 earnings look like when they start being released next week. Expectations are quite high so any hint that the overall market might come up short could be the type of thing that moves more traders to the sidelines. It wouldn't be a stretch to consider that the market has topped, at least in the very near term. The S&P got as high as 2552 yesterday. It doesn't mean we'll get a major pullback anytime soon; the market could consolidate for a long time at these levels. Bottom line is I can't come up with a strong argument to be aggressive to the long side here just like I can't argue for aggressive shorting. This means we'll need to be very picky on a stock by stock basis until we see what happens next and as we move into the beginning of earnings season next week. KEY EARNINGS REPORTS Companies reporting earnings today (October 6) Before Market Opens None After Market Closes: None Companies reporting earnings Monday (October 9) Before Market Opens: NONE After Market Closes: NONE ADDITIONS TO WATCH LIST Going to be very selective in the near term BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock is fairly flat as it continues to consolidate and a close above $180.76 would be bullish. CRM - Stock is showing a bit of life today and a close back above yesterday's close of $96.73 would be very bullish. Mid Cap Watch List GWRE - Stock is up slightly as it continues to consolidate right at the 20 day moving average and a close back above $78.64 would be bullish. SFR - Stock continues to struggle as it hovers just above its 50 day moving average. PLEASE NOTE: We are changing the stop loss on this stock to any CLOSE below its 50 day moving average, currently at $35.99. Small Cap Watch List GIII - Stock is down by 1% as it hugs its 20 day moving average. Want to see it close above that level, currently at $28.73. DELETIONS FROM THE WATCH LIST None I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats