EB Watch List Update Report

Dear Members: MARKET NOTE: We've got some selling this morning after last week's roller coaster ride. It makes some sense considering the market bounced strongly off the recent bottom with traders locking in some quick profits. August trading ends today then we move into September. Barring a major reversal and points tacked on today we'll end the month with all of the major indexes below all key technical levels. So quite a different picture than coming into August with the S&P down 6% for the month. Traders are now trying to assess where the market is headed in the near term; can the bulk of the recent gains hold or do we need some type of retest, perhaps Thursday's low of 1942. On the other hand a close above Friday's close of 1988 could result in a test of the 20 day moving average, now at 2018 which is likely to be a big barrier to get through. KEY EARNINGS REPORTS Companies reporting earnings today (August 31) include: There are no key earnings reports due out today Companies reporting earnings tomorrow (September 1) include: DLTR, DCI, and HRB ADDITIONS TO WATCH LISTS: Here's what I'm thinking. Last week was quite an anomaly; something you don't see very often, which threw everyone for a loop. And it changed the market environment from one where the market wasn't going anywhere, but was holding up, to now being technically broken. So we're being very picky here, only wanting to add stocks to the Watch List that have very high reward to risk potential. We have a few stocks on our radar screen but would rather get them even cheaper. And we need to see if the S&P can get back through its 20 day moving average or pullback some more and form a bottom. At present it's just too tricky. So we'll continue to update you on existing stocks, try to maintain capital as this market continues to struggle through this period of volatility, and only present you with new trading opportunities if we see something VERY interesting that provides high profit potential. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List AMZN - Still looking to see if the stock can get back above $523 which would be very bullish. LEN - Going against the grain today. Next bullish step would be a close back above $51.60, its 20 day moving average. Mid Cap Watch List NUVA - Stock is trying to print right side of the neckline of a bullish head and shoulder pattern. A pullback around $52 would possibly mark the inverse right shoulder. A close above $54 (a level tested earlier today) on strong volume would be bullish. Small Cap Watch List KFY - Almost tested its 20 day moving average earlier in the session. A close above $33.94 would be bullish. RUBI - Stock continues to try to find its footing. Still has a lot of work to do and a close above $14.99 would be bullish. 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