EB Watch List Update Report

Dear Members: Market Update: Just over a week ago traders were loving blue chips and even were buying tech stocks when the NASDAQ was over 8100. Now today with the NASDAQ down 9% and oversold traders don't want to touch stocks. You can see the nervousness in the market with the VIX up another 5%. And stocks that led the market higher, Amazon, Netflix and even Apple are being shunned, with AMZN alone losing close to a staggering $200 billion in market cap in just over a week's time. But guess what? Now the VIX is showing signs of being extended. In looking at the S&P it's dipped below its 200 day moving average for the first time since early May; but it was for one day and marked the bottom with the S&P rising to its all time high four months later. Now we have both the NASDAQ and S&P oversold with the Dow well off of its recent all time high yet traders are reluctant to even dip their toes into the market. For sure the market could continue to move lower here; the volatility shows extreme concern. But I will make the argument that the selling has now been overdone, even though it could continue. And it's coming just one day from the beginning of earnings season with four major banks set to report their numbers before the bell tomorrow. Looking at the NASDAQ there appears to be support another 10-15 points from today's low; 7334 to be exact. So we've got the NASDAQ down over 9%, a huge number of stocks oversold and closing in on price support, all adding up to me as a rare buying opportunity, and thus the increase in alerts. Keep in mind that all of our trade alerts come from our list of companies that beat earnings expectations, the type of stocks that traders gravitate towards and the type of stocks that could recover quickly once the selling is over. Let's watch to see if the S&P can close back above its 200 day, currently at 2765. A bonus would be a nice reversal and seeing green later in the day. In the meantime we will keep you posted on any adjustments to all existing stocks on the Watch List. Companies reporting earnings today (October 11) Before Market Opens: DAL and WBA After Market Closes None Companies reporting earnings tomorrow (October 12) Before Market Opens: C, JPM, PNC and WFC After Market Closes: None ADDITIONS TO WATCH We added SCVL and AVAV yesterday and CLDR and OKTA to the Watch List this morning with additional details below. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List CREE - Stock is stubbornly weak as it remains oversold, down 9 sessions in a row, pretty much unheard of for the stock as it's made another near term low before bouncing some. Current stop is any close below $34.54 but that could change and we will keep you posted. PVTL - Stock is lower by 1% with a stop of any close below $17.56 but that could change and we will keep you posted. A close back above $18.50 would be bullish. AVAV - We added AVAV to the Watch List yesterday at an entry price of $94.80 with a price target of $108 and a stop of any CLOSE below $94. If that changes we will let you know. CLDR - We added this stock to the Watch List this morning with an entry price of $15.40 with a price target of $17.75 and a stop of any CLOSE below $15.25. OKTA - We added this stock to the Watch List this morning with an entry price of $54.80 with a price target of $62.50 with a stop of any CLOSE below $53.79. Small Cap Watch List VSI - We issued a profit alert on this stock this morning at $9.99. GREAT TRADE! GIII - Stock closed below our stop loss yesterday so is being removed from the Watch List Deletions from Watch List GIII and VSI At your service, John Hopkins EarningsBeats