EB Watch List Update Report

MARKET NOTE: Dear Members: It's important to remember that we are in options expiration week with puts and calls squaring by Friday's close. Options expiration week is often volatile, and especially when the market has either been overbought or oversold. In looking at the SPY in the options chain, I can see that there are many more traders betting on the market than against it. At the same time, the equity only put/call ratio dipped down near .50 yesterday and we know the VIX has shown extreme complacency of late. All adding up to it makes sense for the market to take a pause here which is exactly what we are seeing today. We're also getting mixed signals from the Fed with one Fed governor saying we might need to stimulate the economy more and another one say we could see a rate increase in September. Who is to be believed? Just more confusion which traders never like. And all of this coming just a day after all of the major indexes reached all time highs. So far today traders have remained cautious rather than buying on this dip. Of course that could change - the appetite for stocks of late has been quite strong - but it still would not be so bad to see some additional selling to let even more built up steam out of the market. Right now the range on the S&P is 2194 to the upside and 2170 to the downside. Right now it's square in the middle of the range. So we'll have to wait and see what happens as the day develops and go from there. KEY EARNINGS REPORTS Companies reporting earnings today (August 16) include: CREE, DKS, HD, TJX and URBN Companies reporting earnings tomorrow (August 17) include: A, AEO, ADI, EV, LB, NTAP, NTES, PGR, SPLS and TGT ADDITIONS TO WATCH LISTS: Will keep members posted on any new additions to the Watch List BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List There are no Mid 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 HAWK - This stock continues to struggle to make further progress to the upside. It needs to reverse soon and close back above $34 or it could move lower. CIEN - Stock is up almost 2.5% today and a move above 21.87 would be very bullish. DELETIONS FROM OUR WATCH LISTS: None at this time. At your service, John Hopkins EarningsBeats