EB Watch List Update Report

MARKET NOTE: Dear Members: Options expiration week continues to drive the trade today with all of the major indexes lower. I mentioned in my message yesterday there were too many bets in the SPY for market makers to tolerate; we needed some selling and we're getting it. In looking at the SPY today the greatest number of calls and puts is right at 217; very close to where the SPY is trading right now. There's also a load of calls at 218. So keeping the SPY contained does not surprise me. We've also got the Fed releasing its minutes from the last FOMC meeting today at 2:00 pm eastern. There's a lot of buzz that the Fed is getting more hawkish so traders are a bit nervous ahead of the release. The nervousness can also be seen in looking at the VIX which is higher today by over 8% as it has moved back above its 20 day moving average. The S&P is hugging its 20 day moving average right near 2169. This is the level I identified as the first line of defense if the selling picked up. Should that go then 2152 is a level to watch. It is going to be interesting to see if traders step up to the plate here and buy on the dip; this has been the case lately. But this could partly depend on what the Fed minutes say. The NASDAQ looks like it has support near 5186. This is an important level for the bulls to hold. Bottom line at the moment; time to move to cautious mode and wait until the Fed releases its minutes and then go from there. KEY EARNINGS REPORTS Companies reporting earnings today (August 17) include: A, AEO, ADI, EV, LB, NTAP, NTES, PGR, SPLS and TGT Companies reporting earnings tomorrow (August 18) include: AMAT, GPS, HRL, ROST, TTC and WMT 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 consolidate. Still needs to close back above $34 if it hopes to move higher. CIEN - Stock has pulled back over 2.5% today after nice run the past few sessions. Will need to close back above $21.88 to get back on an upward track. DELETIONS FROM OUR WATCH LISTS: None at this time. At your service, John Hopkins EarningsBeats