EB Watch List Update Report

Dear Members: MARKET NOTE: Turns out traders were happy with the weaker than expected jobs report on Friday as it took away the ammo the Fed was looking for to raise rates. Now that is off the table until at least December at the earliest with renewed interest on the buy side. The buying Friday and into today has lifted all of the major indexes over their respective 20 day moving averages, giving the bulls something to work with. And it's coming as we enter the official kickoff of earnings season with Alcoa set to report its numbers later this week. Now we're going to want to see if the market holds the gains into the close or will we see more of what we've seen lately of selling on any rally? It is possible if we do see some profit taking that we will see some buying on the dip which would be a meaningful shift in strategy. At the moment we are right in the middle of a range comprised of the 20 day to the downside at 1947 and the 50 day to the upside on the S&P at 2000. If the S&P closes above 1979 (the most recent high close) then 2000 could come quickly. If it stalls here we could see a retest of the 20 day. KEY EARNINGS REPORTS Companies reporting earnings today (October 5) include: There are no key earnings reports due out today Companies reporting earnings Tuesday (October 6) include: PEP and YUM ADDITIONS TO WATCH LISTS: We've been waiting patiently for the market to show some signs of stability before adding any new stocks to the Watch List. We are getting closer, especially with the bulls regaining at least some technical advantage. But we need to be careful to not get overly excited here, see if today's gains hold and start looking at getting involved in strong candidates on pullbacks. Also with earnings season about to begin we will be able to identify many stocks that beat earnings and have strong charts. So let's remain disciplined here and see if we can get confirmation that the worst of the selling is over before we get too aggressive. 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 has participated in the move higher from the past few days and is back above all key technical levels. A close above $13.01 would be bullish. 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