EB Watch List Update Report

Dear Members: Please note that I just posted a new Behavior Modification Case Study on my blog. MARKET NOTE: The market picture is much different today with all of the major indexes higher. Generally the type of move we are seeing today would be applauded by the bulls but the damage from the past few sessions was extensive, leaving all of the major indexes technically broken. The heavy selling yesterday falls under the extremely unique category with the Dow falling over 1,000 points early in the day. Now traders are trying to figure out if this substantial correction has put a bottom in the market or if there is further selling to come. One bit of good news is all of the major indexes held their respective October 2014 lows. That remains a marker in the near term, i.e., a possible level to be retested if selling resumes. The VIX has settled down, lower by 40% from yesterday's high over 50, a level not seen since 2008. So traders remain on high alert, though not at levels seen yesterday. And now we need to be cautious and keep an eye on what happens as the day progresses, and especially into the close. KEY EARNINGS REPORTS Companies reporting earnings today (August 25) include: BMO.TO, BBY, DSW, SLH, TOL Companies reporting earnings tomorrow (August 26) include: CHS, NA.TO, PLL, PSEC, PVH, RY.TO, WSM, ADDITIONS TO WATCH LISTS: Just a reminder that we added Amazon (AMZN) to our Large Cap Watch list yesterday at an initial entry price (as of email sent) of $481. The chart and details can be found on our site under the Watch List section. At this point we are going to lay low; the whipsaw action needs to settle down some as there's no telling in the very near term what we might wake up to; Asia, fear, etc. We will revisit again tomorrow as we deal with the market one day at a time. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: A few of our Watch List stocks closed below stop levels yesterday so have been removed from the Watch List as follows: C, VRSK, JCOM Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List AMZN - Gap resistance is at $494 then then the falling 20 day ema, now near $510. LEN - Gap support on this stock is just under $49. This is an important level for the stock to hold as it tries to reverse to the upside. Mid Cap Watch List NUVA - Stock is up almost 3% today. It needs to get back over the 20 day, now at $52.54, which would be bullish. To the downside yesterday's open of $49.37 needs to hold. Small Cap Watch List KFY - Stock went right back to gap support and we would like to see it hold $32.60. For protection WE ARE CHANGING OUR STOP TO A CLOSE BELOW $32.50. If the stock closes below that level it will be removed from our Watch List. RUBI - $13.86 is an important level of support on this stock. WE ARE CHANGING OUR STOP TO A CLOSE BELOW $13.86. To the upside first resistance will be the falling 20 day moving average, now at $15.32. 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