EB Watch List Update Report

Dear Members: MARKET NOTE: First, please note that Tom Bowley has posted a new blog on our site that covers seasonal trends for September. Very timely and a MUST read! Also please note that we added 10 stocks to our Candidate Tracker over the weekend. Market's around the world are in turmoil with all of the major US indexes down sharply but well off session lows. The Dow alone was down over 1,000 points at its session low, a 16% correction off of the May 19 high. Not surprisingly, all of the major indexes are technically oversold with RSI's in the teens all the way around. While the selling is quite painful in the short term perhaps it is exactly what the market needed, given it has been in going nowhere mode since late last year. At its high today, the VIX hit a level not seen since December, 2008, when the S&P was less than half of where it is today. It has since retreated but still remains at elevated levels with plenty of fear remaining as traders try to decide if the worst of the selling is over. Bond yields are lower as well with the ten year treasury note back below 2% for the first time in almost 3 months. At the same time the US dollar is down substantially falling below its May 14 low and below all key technical levels. What to watch for? We should watch to see where the market closes by day's end. Naturally, a reversal into positive territory would be bullish. On the other hand resumption of the selling could be problematic. KEY EARNINGS REPORTS Companies reporting earnings today (August 24) include: No key earnings reports today Companies reporting earnings tomorrow (August 25) include: BMO.TO, BBY, DSW, SLH, TOL, ADDITIONS TO WATCH LISTS: We are adding Amazon (AMZN) to our Large Cap Watch list today at the current price (as of email sent) of $481 with a stop of a close below $450 and a target of $578. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Please note that PCLN and STJ closed below their closing stop levels on Friday so have been removed from the Watch List. A few of our Watch List stocks have hit additional 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. Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List C - Stock is under fire with treasury yields falling so hard. If it closes below $53 it will be removed from our Watch List. LEN - Stock hit our second entry of $48.88 and has since bounced nicely. A close back above $51.56 would be bullish. VRSK - Stock hit our third entry level today of $73.24. If it closes below $71.75 it will be removed from our Watch List. Mid Cap Watch List JCOM - Stock has a closing stop of $69 so if it closes below that level it will be removed from our Watch List. NUVA - Stock hit our second entry level today of $50.50 and a close back above $50.70 would be bullish. Small Cap Watch List KFY - Stock hit our second entry level today of $32 and has since bounced. RUBI - Stock fell sharply this morning before recovering. If it closes below $14.25 it will be removed from our 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. At your service, John Hopkins, EarningsBeats