EB Watch List Update Report

Dear Members: MARKET NOTE: Some nice follow through today as traders add to their positions with a hope that the worst of the selling is over. But is it? The next key level of resistance will be last week's high on the S&P of 1993. So far all we're seeing is the continuation of the S&P trading within a range with all of the major indexes remaining below all key technical levels. The 20 day moving average on the S&P is now at 1999, surely a level that will meet big time resistance, should it get there. So does it make sense to get aggressively long here? NO!!! Will it make some sense if the S&P clears its 20 day? MAYBE! But by that time, the S&P would have climbed 7% off the most recent bottom of 1867. And let's remember; September itself is no cake walk. Instead, historically it's the roughest month of the year. So we're not out of the woods here by any stretch. Finally; tomorrow we get the most important economic report of the month; the non-farm payroll report. The market is expecting an increase of 215,000 jobs and an unemployment rate of 5.2%. How will the market react if we meet, surpass or come up short of expectations? No one has a clue! The interest rate bulls will argue that a miss to the downside will keep the Fed from raising rates while the hawks will argue that beating expectations will cement a rate hike. So is bad news good news or is good news bad news? We won't know until the numbers come out at 8:30 am eastern and see the market reaction. So it continues to make sense to tread very lightly here. KEY EARNINGS REPORTS Companies reporting earnings today (September 3) include: CPB, CO, JOY, MDT and PAY Companies reporting earnings tomorrow (September 4) include: There are no key earnings reports due out tomorrow. ADDITIONS TO WATCH LISTS: Holding off on new additions for the moment. But it is worth mentioning that I was looking at a number of our Candidate Tracker stocks and was impressed how many have held up well compared to the overall market. It makes sense since they all beat earnings expectations. So if we can get some more confidence that the market has bottomed we'll have some good candidates to work with while preserving capital in the meantime in case the market goes against us. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List AMZN - Stock up close to 1% as it challenges its recent down trend off the July high. LEN - Stock is up 1.7% but we'd like to see stronger volume as it approaches its 50 day moving average. A close above $51.84 would be bullish. Mid Cap Watch List NUVA - Stock is up fractionally and continues to look strong technically with the 20 day well above the 50 day moving average which is a rarity these days. Small Cap Watch List KFY - Up nicely but challenging both its gap and moving average resistance. This is a staffing company which could be impacted by Friday's jobs report so we've decided to REMOVE THIS STOCK FROM OUR WATCH LIST at the current price of $34. For those who decide to hold a close above $34.39 would be a complete gap fill which would be bullish. RUBI - Stock a bit weak today but closed above its 20 day yesterday which was bullish. Another close back above the 20 day, now at $14.94, would be bullish. DELETIONS FROM OUR WATCH LISTS: We are REMOVING KFY from our Watch List. There are no other deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. At your service, John Hopkins, EarningsBeats