EB Watch List Update Report

Dear Members: Market Update: In Monday's Market Update I proposed the notion that it might take some more selling to get traders off the side lines. I pointed to the NASDAQ, that perhaps a visit to its 50 day moving average, then at 7418, as a level that might become more attractive. This morning the NASDAQ hit 7419 and has since bounced about 60 points. And what about the S&P? I've pegged 2700 as a key level of support. It dipped below that level earlier in the session and has now moved off of its low as well. And then there's the Dow, the weakest of the major indexes, which dipped just below 24,000 before bouncing, that still remains below all key technical levels. Then there's the VIX which is fairly flat after moving higher earlier in the day when the market was under fire. And if there's any silver lining there - and this is a bit of a stretch - it has put in a lower high than when it shot up on Monday with the market much lower today than it was then. It certainly did not help this morning when GDP came out weaker than expected, especially with consumer spending at its lowest level in 5 years. So any way you cut it here traders aren't anxious to jump into stocks in any meaningful way. I should point out that the NASDAQ has gone from being very overbought to being close to technically oversold. And the Dow and S&P are also very near oversold territory as well. So I certainly could make the case that the risk is to the upside here but sometimes the market needs to get to extremes on both sides - overbought or oversold - before some real selling or buying takes place. Accordingly, I think a nibble here and there could be in order - sometimes worth taking a risk when no one wants to buy - with the caveat that we keep very tight stops because as we've seen the past few days the market has become very unforgiving. Companies reporting earnings Today (June 28) Before Market Opens: ACN, CAG, MKC, SJR and WBA After Market Closes: KBH, NKE and SNX Companies reporting earnings tomorrow (June 29) Before Market Opens: STZ After Market Closes: None ADDITIONS TO WATCH LIST We added PLAB to the Watch List this morning with additional details below BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List EXPD - Stock is up slightly after pulling back and holding its 50 day earlier in the session. Still would like to see it close above its 20 day, currently at $74.11, which would be very bullish. APTV - Stock moved below the Intra Day stop of $94.30 yesterday so was removed from the Watch List. You can see that it has moved well below that level today which serves as a reminder of how important it is to honor stops, especially in this market environment Mid Cap Watch List None Small Cap Watch List CSOD - Stock closed below our stop loss of any close below the 50 day so was removed from the Watch List. PLAB - Stock was added to the Watch List this morning at an entry price of $7.65 with a price target of $8.50 and a stop of any INTRA DAY move below $7.50. Deletions from Watch List APTV and CSOD At your service, John Hopkins EarningsBeats