EB Watch List Update Report

Dear Members: MARKET NOTE: The market continues in its highly volatile state with all of the major indexes higher, at least for the moment. Yesterday's heavy selling put traders on warning that the V shape recovery they were hoping for might not be so easy. So far the lows from last week have held, which is not insignificant. It's just too early to tell if that will remain the case or if we need a full retest to satisfy the bears. In thinking this through more, and going back to the Fall of last year, there have only been two times when the bears have really had control; last October, and now. Last year, from the time the S&P started falling and down to its low on October 15, it was about a month's time. And once the bottom was put in, there was no looking back - the bulls got the V shape recovery they were hoping for - at least until two weeks ago when the fireworks started. So the bulls are now in full blown defensive mode; stop the bleeding first and then try to make some progress to the upside. That's the environment we are operating in at the moment which requires extreme caution. So now we need to watch to see if the S&P can put in some higher lows, hold last week's low of 1867 and then ultimately get back over the 20 day moving average, now at 2000. A tall order but not out of the question if traders decide to take advantage of lower prices. KEY EARNINGS REPORTS Companies reporting earnings today (September 2) include: FIVE Companies reporting earnings tomorrow (September 3) include: CPB, CO, JOY, MDT and PAY ADDITIONS TO WATCH LISTS: Still too tricky to add at this point. Need further signs that the worst of the selling is over. Capital preservation is number one at the moment. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List AMZN - Stock opened near its 20 day moving average and so far has failed to get through. Overall holding up as well as can be expected. LEN - So far holding gap support at $49.70 which is initial short-term support. Mid Cap Watch List NUVA - Gapped up early but has pulled back to even on light volume. Small Cap Watch List RUBI - Stock has actually held up the past few weeks after its recent bout of weakness but still needs to get through its 20 day, now at $14.91. 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