EB Watch List Update Report

Dear Members: MARKET NOTE: The bears are at it again albeit all of the major indexes are off of their respective lows. Let's keep in mind that the technical environment we are dealing with now is much different that what we've been used to for a long time since all of the major indexes are technically broken. So the bulls have gone from being in charge to trying to figure out how to mount a charge which of late has been quite elusive. A few things to consider at the moment. First, in spite of the serious problems being experienced in the Chinese market, all of the major indexes have so far remained quite a bit above the August flash crash lows. Next, I went back in history to 2008 just as the market was getting ready to melt down. I looked at a chart on the NASDAQ and found that over the 8 year period sine then and through various market conditions that the NASDAQ was negative seven sessions in a row only two times. Today marks session six, assuming no reversal by day's end. So, if today's losses do hold and if we see more selling tomorrow, it would be a rare event and either indicate the market is really in trouble here or that the selling is nearing an end. Also today; all of the major indexes are now technically oversold. This doesn't mean they cannot remain oversold but it does mean we might see traders attracted to new bargains, stocks that are much cheaper today than they were even a week ago. But it's funny how that works. For example, traders could not get enough of AAPL when it was over $130. Now that its back in the 90's no one wants to touch it! The S&P got as low as 1954 today and the October 2 close was 1951. So we should keep an eye on those levels in case selling resumes. to the upside goal number one for the bulls will be to close the S&P back above 1990. Keep in mind that Chinese officials have decided to lift the circuit breakers on the market once it opens for trading later tonight. This could keep raders on pins and needles. And we've also got the jobs report tomorrow morning. So expect continued volatility into week's end. KEY EARNINGS REPORTS Companies reporting earnings today (January 7) include: BBY and STZ Companies reporting earnings tomorrow (January 8) include: AYI ADDITIONS TO WATCH LISTS: Nothing to do at the moment but ride this out and wait for earnings season to begin next week and see where things stand. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List BSX - Stock touched its 200 day earlier in the session and so far has bounced. It needs to hold $17.64 or could face more selling. Also note the 20 day moving average is converging on the 50 day and a move below would be bearish so be careful here. FB - Stock is down just under 2% and is technically challenged as well. It's going to need to close back above $105 to get technically healthy. Mid Cap Watch List MPWR - Stock is down over 2%. Note that we have a closing stop of below $57.75 so if it closes below that level it will be removed from our Watch List. SBGI - Stock is down and a close back above $32.00 would be bullish. Small Cap Watch List AMKR - Stock is down over 3% today and we have a closing stop of below $5.75 so if it closes below that level 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