EB Watch List Update Report

Dear Members: MARKET NOTE: The market is in obvious correction mode extending from yesterday into today. So far the S&P has lost 3.5% in the last two sessions with traders opting for the sidelines. This follows another rough performance overnight, particularly in the Asian markets. At this point the Shanghai index has lost over 32% in just over two months and is once again testing its 200 day moving average which it has successfully defended multiple times. Now we're seeing some overflow into the US market with traders wondering when the worst of the selling might be over. The VIX has shot up the past two sessions, hitting levels not seen since February. So if the bears were hoping to scare the masses, they have succeeded. The NASDAQ joined the Dow and S&P in closing below its 200 day moving average yesterday, the first time this has happened since October, 2014. So there's seriousness to the selling. All of the major indexes are approaching oversold territory with the S&P at its lowest level since it closed at 2020 on February 2. So this is a level I will be watching with 1992 the next key level of support. KEY EARNINGS REPORTS Companies reporting earnings today (August 21) include: DE and FL Companies reporting earnings Monday (August 24) include: There are no key earnings reports due out Monday ADDITIONS TO WATCH LISTS: There are no new additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Please note that several of our Watch List stocks have hit their second entry levels which I've noted below. There are also a few stocks in danger of being stopped out. I've noted the stop loss levels in the comments below. It's never fun to take a loss but we have found that remaining disciplined, especially in a rocky market, is an important part of successful trading. So if any of the stocks on the Watch List close below their respective closing stops they will be removed from the list. Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List C - Stock is down about 1% but remains well above the closing stop of $53. A close above yesterday's close of $55.53 would be a positive step towards recovery. LEN - Stock is holding up relatively well compared to the overall market as it remains above all key technical levels. PCLN - Stock hit our second entry level of $1250. It has a closing stop of $1220 so if it closes below that level it will be removed from the Watch List. STJ - Stock hit our second entry of $70. It has a closing stop of $68.50 so if it closes below that level it will be removed from the Watch List. VRSK - Stock hit our second entry level of $75.20. A close back above $75.22 would be bullish. Mid Cap Watch List JCOM - Stock hit our second entry level of $71.38 yesterday and so far has successfully held its 50 day moving average. It has a closing stop of $69 so if it closes below that level it will be removed from the Watch List. NUVA - So far this stock is holding its 50 day moving average Small Cap Watch List RUBI - Stock is fairly flat. It has a closing stop of $14.25 so if it closes below that level t will be removed from the Watch List. 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