EB Watch List Update Report

Dear Members: MARKET NOTE: The initial, positive response to the Fed standing pat last Thursday has obviously worn off with the S&P now down almost 90 points from its peak of 2020 shortly after the announcement. Is this type of reaction warranted? Apparently traders think so. The selling is coming at an historically weak time of the year and the 15% rise in the VIX today shows some renewed fear. Now the question being asked is does the market need to retest the August 24 lows in order to satisfy the bears or will traders start to nibble away once they realize stocks are a lot cheaper today than they were even a few days ago? The VIX itself at the current level near 23 remains much closer to its all time low near 9 than its all time high near 90. But traders are hesitant to try and guess if the worst of the selling is over, and who can blame them? The S&P has so far held the September 8 low of 1927. If that were to go we could be looking at the September 4 low of 1911. To the upside the bulls know they need to clear 1972, the current 20 day moving average, if they hope to regain any technical advantage which has been elusive of late. So we really have no choice but to remain in caution mode here. And it's why we've laid low for quite a while now, adding just one stock to our Watch List in the past month, focusing more on capital preservation than anything else. KEY EARNINGS REPORTS Companies reporting earnings today (September 22) include: AZO, KMX, CCL, CAG, DRI and GIS Companies reporting earnings tomorrow (September 23) include: SCS ADDITIONS TO WATCH LISTS: There are no additions to our Watch List today BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List AMZN - Stock has been a champ during difficult market conditions. We raised our stop to a close below $539 so if AMZN closes below this level today it will be removed from our Watch List. Mid Cap Watch List NUVA - Stock continues to remain above all key technical levels Small Cap Watch List RUBI - Stock is flat for the day and a close above $15.33 would be bullish. DVAX - Stock hit our second entry level of $29.15 today but is showing signs of weakness. We will maintain our closing stop of $28.31. Would like to see a close back above $29.62 which would put the stock back above all key technical levels. 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