EB Watch List Update Report

Dear Members: Market Update Two important developments between yesterday's close and this mornings open included a very disappointing earnings report from Apple and a hotter than expected jobs report. AAPL is down almost 9% which is dragging the overall market down with it while the strong jobs report is being seen more as "bad news" rather than "good news" with traders fearing further rate hikes by the Fed. The selling this morning makes some sense; both the NASDAQ and S&P had bounced nicely off the recent lows almost exactly to their respective 20 day moving averages where they ran into strong resistance. At the same time the VIX bounced right back over its 20 day, higher by over 7% as traders started to worry that the nice bounce of late might be coming to an end. As is often the case the answer might be somewhere in between. First the market got oversold and then in just 3 days it might have bounced too much. So it's possible that a near term bottom is in but that it won't be so easy to convince traders to jump in aggressively on the long side. Back to AAPL for a moment. When the largest market cap company in the world disappoints on earnings it sends up a red flag. And now that the majority of companies traders care about have already reported their earnings the question becomes; what's next? It's a good question to ask and might put a damper on the market in the near term until something develops that gives the bulls something to work with. Companies reporting earnings today (November 2) Before Market Opens: BABA, CBOE, CVX, DUK, EXTR, XOM, NWL, STX and USM After Market Closes None Companies reporting earnings Monday (November 5) Before Market Opens: CNA, DO, KMPR, L, PGRE and SYY After Market Closes: CAR, JCOM, MAR, MYL, OXY, PKD, SBAC, and THC ADDITIONS TO WATCH We will keep you posted on any new additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List WSM - Stock reached its price target of $63.40 and a profit alert was issued earlier this morning. GREAT TRADE! Small Cap Watch List CLDR - Stock is bucking the trend this morning, up over 2%, but bumped up against its 20 day moving average earlier in the session before pulling back some. A close above $14.60 would be bullish. Deletions from Watch List WSM At your service, John Hopkins EarningsBeats