EB Watch List Update Report

Dear Members: MARKET NOTE: This morning we saw the S&P get within 9 points of the August 24 low of 1867. Since then the market has bounced which begs the question, is the worst of the selling over? Does today's low constitute a double bottom? There's no telling at this point but getting within 9 points of the low after the S&P got as high as 2020 after the latest rate announcement would be considered a full retest by many. One observation is that the VIX, which went over 50 on the August 24 flash crash, is about half that level now. So certainly no panic like we saw when all of the major indexes fell dramatically back in August. Still, the VIX favors the bears as it remains well above levels seen for most of the year prior to August. On the bounce off of the low this morning the S&P almost touched 1900 before falling back some. So at first blush, selling on the bounce, not so encouraging for the bulls. And now we're going to need to see evidence that the selling has satisfied the bears and a first step would be to see a higher low on any pullback which might get traders interested in at least nibbling. But even if we do see a bounce it's almost certain that there will be major resistance near the 20 day moving average on the S&P, now at 1949. So we will continue to remain cautious here as we near earnings season which will kick off next week when Alcoa reports their numbers on October 8. Things could start looking a whole lot different once we get through September and let's not forget that stocks are much cheaper now than they were before the most recent correction began. KEY EARNINGS REPORTS Companies reporting earnings today (September 29) include: COST Companies reporting earnings tomorrow (September 30) include: PAYX ADDITIONS TO WATCH LISTS: No additions at this moment BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List There are no large cap stocks on the Watch List at this time Mid Cap Watch List NUVA - Stock has been removed from our Watch List as it closed below its stop loss Small Cap Watch List RUBI - Stock has been removed from our Watch List as it closed below its stop loss VRA - Stock is flat today and needs to close back above $12.67 to get back on track 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