EB Watch List Update Report

Dear Members: First, I want to apologize as we experienced some email delivery issues yesterday. There were no trade alerts but the Market Update might not have been received by you. We are working to resolve the issue but wanted to remind everyone that the Market Update is posted under the Member Section of the site, generally by noon eastern. The issues could impact our Monday Quarterly Earnings webinar - i.e., it might need to be postponed. But I will keep you posted. Market Update You can see that we've gone from a buy on the dip type market to more of a sell on any bounces with all of the major indexes now substantially lower. It's not totally surprising with all of the major indexes continuing to be technically challenged. The string of higher lows has ended and traders really don't like tech stocks right now. The VIX is higher by over 14% today and it's worth noting that it bounced as it neared the first key level of technical support. In other words, sellers remain vigilant with a few fingers on the sell button. The market is flat out harder to trade right now with stocks having difficulties holding gains. One great example is Netflix that had strong earnings Tuesday after the bell, gapped up sharply on strong volume and has given up all of the post earnings gains. It doesn't mean NFLX won't hold and even go higher here but the market is giving the benefit of the doubt to the bears who are currently in control. Right now the current range on the S&P is 2710 to the downside (the recent low) and 2816 to the upside (the recent high) so certainly no strong reward to risk scenario. But even before support at the recent low the 200 day moving average on the S&P is at 2768, a level the bulls need they need to hold on any further selling or that recent low could come back into play. One observation I do have is that there are still a number of stocks that got hammered on the recent selling and then bounced are holding up fairly well, waiting for any reason to move higher. We've actually got a few of those on our Watch List; they might not be breaking out but they are trying to hold on the selling. This could be one indicator that the worst of the selling is over. But we're probably going to have to wait for a lot more companies to report earnings, with a ton coming out next week, to see if traders become more bullish. Until then we must respect the bears. Companies reporting earnings today (October 18) Before Market Opens: BK, BBT, BX, DHR, ERIC, GPC, KEY, NVS, NUE, PM, PPG, SAP, SNAP, SON, TSM, TXT AND TRV After Market Closes AXP, ETFC, ISRG, PYPL AND SKX Companies reporting earnings tomorrow (October 19) Before Market Opens: GNTX, HON, KSU, MAN, PG, SLB, STT, STI and VLVLY After Market Closes: None ADDITIONS TO WATCH We will keep you posted on any additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List SPLK - Stock is down 3.8% and right near the original entry as it simply could not clear its 200 day earlier in the session. Until it clears that level (currently at $105.39) with some gusto it will continue to be challenged. In the meantime we will maintain our second entry of $98.50. Mid Cap Watch List CLDR - It looked like the stock had some promise the past two sessions but it's down 2.6% today. I still think this stock could reverse if the market perks up at all and could go much higher so we may change the stop by day's end and will keep you posted. AEO - Stock is lower by 1.7% as it hangs around our initial entry level and as a reminder there is a second entry on any pullback to $20.50 though we would prefer a reversal to the upside rather than more selling. Small Cap Watch List SCVL - This stock is actually holding up fairly well relative to the overall market and looks like it wants to go higher and a close back above $39.50 would be very bullish. EXPR - Stock put in a near term higher high today as it tried to climb back above its 200 day only to lose some steam as market selling picked up. Ultimately it needs to close above the 200 day, currently at $8.80, to make further progress to the upside. Deletions from Watch List None At your service, John Hopkins EarningsBeats