EB Watch List Update Report

Dear Members: Market Update: The market is showing some resilience today with the NASDAQ erasing all earlier losses and turning green and the S&P erasing most losses as well. In yesterday's Market Update I pointed out that if the S&P closed below 2700, which it did, the market would be in store for more selling. We certainly saw that earlier this morning with all of the major indexes down substantially before the bounce. The continuing nervousness is seen in the VIX, up over 10% earlier in the session though now flat. So the long period of calmness is now behind us. If the selling slows here it could be seen as a positive - i.e., if the market could put in a higher low from the recent February 9 bottom. The S&P did hold support right near 2650 which should now be considered support. The big problem for the bulls at the moment is they've lost technical control; that belongs to the bears now, and it comes with none of the major indexes oversold. And with the VIX well over 20 it's going to be tough to convince traders to get aggressively long. For sure any positions we take on in this environment bring additional risk. But quite often recoveries come out of nowhere with oversold stocks catching bids. So it does get a bit tricky. Still, we're better off nibbling rather than putting too much at risk. And more important than ever, honoring stops if a trade goes against us. The bottom line here is the bulls have some work to do if they hope to get back on track The first major layer of resistance on the S&P will be the 20 day moving average, currently at 2715, a level it was at yesterday. So the current range on the S&P is 2650 to the downside and 2715 to the upside. Companies reporting earnings Today (March 2) Before Market Opens FL and JCP After Market Closes: None Companies reporting earnings Monday (March 5) Before Market Opens: None After Market Closes: NLS ADDITIONS TO WATCH LIST We added MTOR to the Watch List after yesterday's Market Update but it hit the stop of an INTRA DAY move below $23.50 so it is no longer on the Watch List. We also added NVDA to the Watch List this morning with additional information below. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None at this time LONGS: Large Cap Watch List NVDA - We added NVDA to the Watch List this morning with an entry price of $227 with a price target of $248 and a stop of any INTRA DAY move below $221. A close back above $232.49 would be bullish. Mid Cap Watch List None Small Cap Watch List INVA - Stock is higher by over 1% and a close above $16 would be bullish. Deletions from Watch List MTOR At your service, John Hopkins EarningsBeats