EB Watch List Update Report

Dear Members: First, please note that I have added a new Behavior Modification Case Study under my blog on the site. MARKET NOTE: We've begun a new trading month and here we go again! All of the major indexes are down substantially this morning. The culprit today? China? Rate concerns? Nervousness? Take your pick as there will be someone who will be willing to make a case as to why stocks are weak today. Historically the first few trading days of September are the strongest period of the month, but we aren't seeing that today. It is true that we've moved away from a very complacent market to one with increased volatility. Today alone the VIX is up over 9% as traders react to the negative market action. So we're living with a different trading dynamic at the moment; no one is quite sure what they will wake up to in the morning these days. And traders continue to look for a bottom, especially after last week's wake up call. As a refresher, the S&P got as low at 1867 last week. From that point it proceeded to rise over 6%, almost getting back to 1900. So that quick bounce was a perfect set up for some selling which we're seeing today. When the market rallied off of last week's low the S&P closed at 1940. So that is a level I'm watching to see if the bulls can defend there. If not we could see some additional selling. In the meantime I'm also watching to see if we get some buying on the dip here. Certainly a reversal into the close would have to be seen as a positive. KEY EARNINGS REPORTS Companies reporting earnings today (September 1) include: DLTR, DCI, and HRB Companies reporting earnings tomorrow (September 2) include: FIVE ADDITIONS TO WATCH LISTS: We're in the midst of some mighty choppy action here. We're better off preserving capital at the moment and revisiting tomorrow after we see how the day ends. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List AMZN - Stock is gapping below its 20 day EMA this morning and now puts AMZN in a very narrow short-term trading range from $499-509. Conservative traders could take small profits on a close below $499. LEN - Home construction index failed thus far at its 20 day EMA and that's affecting most home building stocks today, LEN included. Gap support at $49.70 is initial short-term support. Mid Cap Watch List NUVA - Weakness into Monday's close and the gap down this morning may have established an inverse right shoulder. Would like to see a strong finish today. Small Cap Watch List RUBI - Stock gapped down like the overall market this morning. Recovering some although it could use more volume and a close above its declining 20 day EMA to encourage more technical buyers. 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