EB Watch List Update Report

Dear Members: First, is appears as our issue with emails has been resolved and I apologize for any inconvenience. Also we WILL be conducting our Quarterly Earnings webinar on Monday, October 22. There's no need for you to register for the event as you will be sent room instructions prior to the start of the webinar. And the webinar will be recorded as well for those of you who are unable to attend the live event. Market Update We're getting a good lesson in volatility these days going back to the beginning of October when the VIX first started to spike where in the course of 5 trading days it went from 11.72 to almost 29. Since then it has settled down some, currently trading near 18.50, still elevated and still showing plenty of fear but nowhere near its most recent peak. But it has wreaked havoc on trading, making it more difficult for stocks to hold gains with traders wondering what they might wake up to each morning. One thing that we're seeing is a big battle around the 200 day moving average, especially on the NASDAQ and S&P. That's a technical "line in the sand" and a level that the bulls are fiercely trying to defend with the bears trying to puncture and take the market lower. So far today all of the major indexes are above their respective 200 day moving averages but given the volatility that could change quickly. We've seen mixed responses to earnings this week; there's been no mercy on those companies that have disappointed - i.e., IBM losing 10% on its big miss. And we saw how NFLX gave up all of its gains in spite of an earnings beat. American Express, on the other hand, is up close to 4% on its numbers, but still not soaring. So this is going to be the big story the next few weeks; how will traders respond to overall earnings? I do think traders will wait to see more numbers before they completely bail so selling could be contained into next week. But if the S&P closes back below 2768 all bets are off. Companies reporting earnings today (October 19) Before Market Opens: GNTX, HON, KSU, MAN, PG, SLB, STT, STI and VLVLY After Market Closes None Companies reporting earnings Monday (October 22) Before Market Opens: BOH, HAL, HAS, KMB and PII After Market Closes: CR, SLM, AMTD and ZION 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 1% as it struggles to find its footing after failing to hold above its 200 day moving average the past few sessions. It needs to clear that level, currently at $105.44 to get back on track. We'll also maintain our second entry of $98.50. Mid Cap Watch List CLDR - Stock continues to look weak, down another 2.5% for the session. We change our stop to any CLOSE below $14.65. The stock remains oversold so hopefully we'll see some recovery into the close. AEO - Stock is higher by almost 1% as it hangs around our initial entry level and as a reminder there is a second entry on any pullback to $20.50. . Small Cap Watch List SCVL - Stock is up slightly as it remains above all key technical levels. It needs to clear $39 with some gusto and a close back above $39.50 would be very bullish. EXPR - Stock is fairly flat as it continues to try to move through its 200 day moving average, currently at $8.79, a level it needs to clear to make further progress to the upside. Deletions from Watch List None At your service, John Hopkins EarningsBeats