EB Watch List Update Report

Dear Members: Market Update The 20/50 day crossovers I've discussed the past few days came into play in a big way this morning with all of the major indexes substantially lower. How spooked are traders? Enough for the VIX to climb back above all key technical levels and up double digits. When you do get a cross like we've seen it's almost always bearish. The big question then becomes; how long might it last? In a negative market environment losses can grow, sometimes quickly. But we have seen on many occasions since the December 26, 2018 bottom, that traders have been more than willing to take advantage of moves lower. And at the moment all of the major indexes are well off session lows as traders once again showed interest in cheaper stocks. So, this could be a day to gauge interest between now and the market close; will buying on the dip continue or will we see a pick up in selling as the day progresses? So far the S&P has remained above the most recent low near 2800 getting as low as 2814 earlier this morning. So this is a level to watch to see if it holds. To the upside the bulls have a lot of work to do to regain the technical advantage with 2873 a level that needs to be cleared before they can breathe a sigh of relief. In the meantime we're still in "proceed with caution" mode until further notice. Companies reporting earnings today (May 23) Before Market Opens: FL After Market Closes None Companies reporting earnings Tuesday (May 28) Before Market Opens: BNS and BAH After Market Closes: WDAY ADDITIONS TO WATCH LIST We added PVH to the Watch List yesterday and today MTOR became an active trade with additional details below. 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 PVH - We added this stock yesterday at an entry price of $109.92 with a price target of $124 and a stop of any CLOSE below $106. It's close to that $106 level today so keep an eye on it. Any reversal to the upside later in the day would be bullish. Also, we found out after the alert was sent out the PVH will be reporting earnings the morning of May 29 so we will need to be nimble prior to the report. Mid Cap Watch List None Small Cap Watch List MTOR - Stock hit entry price of $20.05 today so was added to the Watch List. A close above $20.40 would be bullish. Deletions from Watch List None At your service, John Hopkins EarningsBeats