EB Watch List Update Report

Dear Members: MARKET NOTE: Not a good day for the bulls with all of the major indexes down substantially a day after the Fed minutes revealed almost no chance for a September rate increase. Yields on government bonds continue to fall with the ten year now at 2.08% and threatening to fall even further. The US dollar is down again today as traders realize no rate increase is in site. The NASDAQ is getting hit the hardest today, down 1.5%, as traders cash in all the way around. And for the first time since October of last year, the NASDAQ is testing its 200 day moving average while the Dow and S&P are both below all key technical levels. We should remember that tomorrow is options expiration Friday and a lot of call premium is being wiped out. At the same time, there are a huge number of SPY puts at 206, so that might help to at least put some type of floor on the market the next few days. As a reminder, the S&P got as low as 2044 the last time it fell below its 200 day in July before it proceeded to rebound to its all time high. So we'll want to see if 2044 holds this time around. At a minimum the bulls need to get the S&P back above the 200 day, now at 2078. Otherwise the market will remain vulnerable to additional selling. KEY EARNINGS REPORTS Companies reporting earnings today (August 20) include: BRCD, GPS, HPQ, MSG, ROST, CRM, SHLD, TTC Companies reporting earnings tomorrow (August 21) include: DE and FL ADDITIONS TO WATCH LISTS: There are no new additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List C - Bank stocks are struggling near-term as the 10 year treasury yield is currently trading back beneath key support at 2.095%. Reversal in yield today would benefit banks, otherwise look for additional near-term weakness. LEN - $53.75-54.00 level is likely to provide initial support. Home builders remain one of the best areas of the market technically. PCLN - Stock fell beneath gap support intraday and is now testing the rising 20 day EMA for the first time in a month. We'd like to see the 20 day EMA, now at $1273, hold at days' end. VRSK - Stock is down 2% today but so far holding its 50 day moving average at $75.22. Mid Cap Watch List JCOM - Stock is currently holding above the combination of price support, gap support and the rising 20 day EMA. NUVA - So far this stock is holding its 20 day moving average. $52.09-$52.80 is the current range of support. Small Cap Watch List KFY - Stock is bucking the trend and trading higher today. Appears to be in the right shoulder of a bullish inverse head & shoulders pattern. RUBI - Stock is attempting to hold onto early July price support. DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. I want to wish everyone a restful weekend and I will be back Monday morning with my EB Watch List Update Report. At your service, John Hopkins, EarningsBeats