EB Watch List Update Report

Dear Members: MARKET NOTE: We're getting some follow through selling today after yesterday's move lower. In some ways its welcomed as lower prices = better opportunities. It's also not totally surprising with traders now keenly aware that there is an increased possibility the Fed will be raising rates in December. And though raising the Fed Funds rate by 25 basis points alone is no big deal it is symbolic since the Fed has been on hold for many year now. Thus the market is trying to wrap its collective head around the notion of a shift in strategy. The good news for the bulls is that so far the both the 20 and 200 day moving averages (which have now converged at 2063) on the S&P have held. It's an important level to hold as it gives the bulls the technical advantage and a close below 2063 would set the stage for further selling. Now the bulls are tasked with trying to hold the line here and move the S&P back above 2100 which would return the momentum in their favor. But traders are being understandably cautious here to see what develops in the very near term and to me this makes a lot of sense. KEY EARNINGS REPORTS Companies reporting earnings today (November 10) include: TRCO and W Companies reporting earnings tomorrow (November 11) include: ADT, M, NTES and SINA ADDITIONS TO WATCH LISTS: Our decision to lay low a few days ago seems to have worked in our favor. I just want to keep an eye on the market and see what develops by day's end, see if we get a reversal to the upside or if we see more selling. So for the moment no new additions to our Watch List. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List FLEX - As long as the stock continues to hold its 20 day moving average, now at $11.45, it should be fine. Would like it even better if it closed back above its 200 day moving average, now at $11.57. Mid Cap Watch List There are no mid cap stocks on the Watch List at this time Small Cap Watch List PLAY - Stock is holding just fine here and a close above $40.05 would be bullish. SWHC - Stock continues to consolidate as it looks for its footing and a close back above $18.0 would be bullish. VRA - This stock continues to struggle along with other retail stocks and needs to close above $12 or it will be removed from our Watch List. 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