EB Watch List Update Report

Dear Members: MARKET UPDATE The mostly "not a care in the world" market continues. I say mostly since the VIX is higher by almost 5% and back above its 20 day moving average, a mini indication that traders might actually believe that stocks have gotten long in the tooth. Of course we've seen nothing but great interest on any pullbacks - even those that are shallow - with little indication that is about to change anytime soon. But I still want to remind everyone that the market is priced for perfection here; not much room for anything out of the blue to pop up. This week is really the official beginning of Q3 earnings season with some major banks set to report their numbers later in the week. Then when we get into next week the earnings flood gates will open with overall results likely to play a big role in the near future direction of the market. Afterall, traders care mostly about earnings when everything is said and done. We've at least got some markers we can look at which might be helpful in looking at where the market might be headed. For example, the S&P got as high as 2552 last week so that's a level the bulls know they need to clear to take the market higher. To the downside, the first important technical level of support is now at 2516. So that's the range for the moment. But in order for the market to move higher, traders are going to have to be willing to buy into an already overbought market. Every major index is at technically lofty levels. To me that's not the time to get aggressive on the long side because if we do see some type of unexpected event or if we start to see programmed selling pick up in a big way it could trigger a decent pullback. So I think it makes sense to respect the bulls here but continue to be very picky, take nice profits when they come along and wait for better opportunities. KEY EARNINGS REPORTS Companies reporting earnings today (October 9) Before Market Opens None After Market Closes: None Companies reporting earnings tomorrow (October 9) Before Market Opens: NONE After Market Closes: NONE ADDITIONS TO WATCH LIST Please note that we will be updating the Candidate Tracker later today which will include some new potential high reward to risk trading candidates. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List NVDA - Stock is higher by almost 3% today with our price target at $189. CRM - Stock is fairly flat and a close back above $96.85 would be bullish. Mid Cap Watch List GWRE - This stock has been in consolidation mode for almost a month now as it continues to trade above its 20 day moving average. A close back above $78.64 would be bullish. SFR - We changed our stop loss on this stock to any close below its 50 day moving average and it closed below that level on Friday. Accordingly, we are removing SFR from the Watch List. Small Cap Watch List GIII - Stock is down by almost 3% as it tests 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 $27.53. If it closes below that level it will be removed from the Watch List. DELETIONS FROM THE WATCH LIST SFR is being removed from the Watch List as it closed below its 50 day moving average on Friday. At your service, John Hopkins EarningsBeats