EB Watch List Update Report

Dear Members: MARKET NOTE: The bulls took a stand earlier in the week and were rewarded with a nice move to the upside yesterday. Now on the first trading day of October they are struggling to hold on to those gains. But at this point holding on to any gains, rather than taking a step backward, would be seen as a positive development. Energy was showing signs of life earlier in the session but has given up all of the earlier gains. Another development that could be seen as positive or negative, depending which side of the argument you are on; government bond yields are lower ahead of tomorrow's monthly non-farm payroll report. In fact the yield on the ten year treasury note is now close to 2%, it's lowest level since the August 24 flash crash when it touched 1.9% before reversing. So certainly putting a damper on the camp looking for the Fed to raise rates but helping those who believe lower rates are a positive in the short term. Whatever the case, in spite of the bounce off of Tuesday's low, all of the major indexes remain below all key technical levels. So a great deal of uncertainty remains forcing us to lay low in the near term. In the meantime, the bulls would like to at least hold 1900 on the S&P on any further selling, knowing 1867 is a line in the sand to the downside, while 1942, the 20 day moving average, is a target to the upside. KEY EARNINGS REPORTS Companies reporting earnings today (October 1) include: MKC and MU Companies reporting earnings tomorrow (October 2) include: There are no key earnings reports scheduled ADDITIONS TO WATCH LISTS: No additions at this moment. We're nearing earnings season which will help us determine what stocks present the greatest reward to risk opportunities. 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 There are no mid cap stocks on the Watch List at this time Small Cap Watch List VRA - Stock was looking stronger earlier in the session and needs to close back above $12.61 to regain full technical advantage. 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