EB Watch List Update Report

Dear Members: Market Update: With the heavy selling of late a rebound was overdue and we are seeing that today with all of the major indexes higher as earnings season gets under way. It is far too early to say the market is out of the woods; we can see that it's difficult for the market to hold gains and the market is technically damaged with both the NASDAQ and S&P struggling to remain above their respective 200 day moving averages and the Dow struggling as well. One positive development for the bulls is the VIX is down by 7% but it's still well above all key technical levels and showing traders have two to three fingers on the sell button with little tolerance for further losses. We did see four major banks report earnings this morning with two of them higher and two of them lower, so a split decision. But traders are looking for confirmation that earnings will come out just fine for Q3 and they won't really know for another few weeks. A few things really need to happen to get any confidence that the selling is over. First, the S&P needs to close firmly back above its 200 day, currently at 2766. Next, the NASDAQ needs to show some leadership after lagging and leading the market lower for some time now. This is especially true of some of the large cap tech stocks which have fallen apart. We also need to see the VIX settle down some; getting back into the teens would at least be a start. And we also need to see higher lows on all of the major indexes which would also show that traders believe the worst of the selling is over. Until then we need to remain vigilant, take profits as they come along, honor stops and be nimble. Companies reporting earnings today (October 12) Before Market Opens: C, JPM, PNC and WFC After Market Closes None Companies reporting earnings Monday (October 15) Before Market Opens: BAC After Market Closes: None ADDITIONS TO WATCH We added CLDR and OKTA to the Watch List yesterday and AEO this morning with additional details below. We'll be very selective about adding new trade alerts, only those with very 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 moved below our stop loss so is being removed from the Watch List. PVTL - Stock moved below our stop loss so is being removed from the Watch List. AVAV - Stock moved below our stop loss so is being removed from the Watch List. CLDR - Stock is higher by 3.7% as it makes an attempt to move back above its 50 day moving average. A close back above that level, currently at $15.89, would be bullish. OKTA - Stock is higher by over 5% but off highs of the session. Would like to see some strength into the close to show worst of the selling is over. AEO - Stock was added to the Watch List this morning at an initial entry price of $21.12 with a second entry on any pullback to $20.50 with a price target of $24 and a stop of any INTRA DAY move below $20.35. A close above $21.53 would be bullish. Small Cap Watch List SCVL - Stock is higher by 4% but off the high of the day. A close above $38.42 would be bullish. Deletions from Watch List CREE, PVTL and AVAV At your service, John Hopkins EarningsBeats