EB Watch List Update Report

Dear Members: Market Update: The market finally ran out of steam with the NASDAQ leading the move lower today. I point this out as the NASDAQ has consistently lagged the overall market so it's no surprise that it's down by by a greater percentage than both the Dow and S&P. And the S&P failed to clear its all time high yesterday showing once again that key resistance levels - especially all time highs - are tough to crack. Certainly there is concern that treasury yields have continued moving higher as the economy has strengthened, with blue chips still seen as save haven stocks in the current environment. Thus, the pecking order remains the same with the Dow above all key technical levels, the S&P trying to hold above all levels and the NASDAQ dipping below both its 20 and 50 day moving averages. The VIX is higher by 23%, reflecting near term concern of investors, and a close above its 200 day moving average, currently at 14.91, could lead to additional selling. I still feel that the weakness here is presenting new opportunities, particularly on those stocks that are extremely oversold; at some point they will be seen as bargains; it just might not be today. In the meantime let's keep our stops in place; a few strong winners can quickly make up for small losses. Let's also watch to see if the S&P holds its 20 day, currently at 2907 and if the NASDAQ can close back above its 50 day, currently at 7921, as that will help determine if the worst of the selling is over - or not. Companies reporting earnings today (October 4) Before Market Opens: STZ After Market Closes COST Companies reporting earnings tomorrow (October 5) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH We added SCVL to the Watch List yesterday with additional details below. We will keep you posted on any new trade opportunities, especially those with high reward to risk potential. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List CREE - Stock is lower for the seventh out of eight days as it remains extremely oversold. However we will keep our stop of any close below $36.50. DOCU - Stock is down by almost 2% and remains oversold. A reversal to the upside would be positive. We will keep our stop at any CLOSE below $45.20. PVTL - Stock is holding up well relative to the overall market. Any close above yesterday's close of $19.35 would be bullish. WSM - Stock is down slightly but has bounced off the low of the day. Stock remains oversold but we will keep our stop of any CLOSE below $62.50. Small Cap Watch List SCVL - We added this stock to the Watch List yesterday at an entry price of $36.93 with a price target of $40.65 and a stop of any CLOSE below its 50 day moving average, currently at $36.56. Deletions from Watch List None At your service, John Hopkins EarningsBeats