EB Watch List Update Report

MARKET NOTE: Dear Members: The bulls are out in full force this morning with the NASDAQ touching an all time high while the S&P got awfully close. But...right on cue we've seen some profit taking with all of the major indexes off of their respective session highs. In fact, should the market move into sell mode later, the bears will make the argument that the S&P has doubled topped; it's going as high as it can for the time being. Of course that might not prove to be the case at all. Generally it takes more than one or two attempts to clear important levels. But its getting harder and harder to commit capital to the long side, especially since there has been no pullback to speak of since the market bottomed in late June. The NASDAQ hit a level never seen before, 5275, before some profit taking kicked in. Now we have a new mark for the bulls to shoot for. The problem the bears have had of late is just when it looks like a top is in the bulls step up to the plate. This is why today's close intrigues me; will traders jump back in on this mini-dip off of the top or will they be content to move to the sidelines? We certainly know what the target on the S&P is; 2194 which would mark a new all time high. To the downside 2175 is the first level of technical support which happens to be the low of the past two sessions. So that level has some meaning, at least in the short term. KEY EARNINGS REPORTS Companies reporting earnings today (August 23) include: BMO.TO, BBY, SJM and TOL Companies reporting earnings tomorrow (August 24) include: HPQ, PVH and RY.TO ADDITIONS TO WATCH LISTS: As a reminder: We updated the Candidate Tracker this weekend so there is a new batch of companies that beat earnings expectations for members to review. Some of these might become active alerts. I'm going to hold off issuing any alerts at this time. I think at this exact moment the market is very vulnerable. It might not feel like it; the VIX shows very little fear. But IF we are topping here we don't want to be stuck holding too many long positions. IN FACT, you will note below we are exiting our two long positions and moving into very conservative mode. If we miss some near term opportunities, so be it. Still like to get stocks cheaper instaed of chasing them in rare air. 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 - Two days in a row this stock took a shot at its 20 day moving average and failed. It just hasn't made the move we hoped it would when originally issued so we are REMOVING it from our Watch List at the current price (as of this update) of $32.76. If you continue to hold watch to see if it can clear that 20 day, now at $33.44. CIEN - This stock is higher but if the market stalls here it may have double topped. Thus we are removing it from the Watch List a nice winner at the current price (as of this update) of $21.99. If you continue to hold watch to see if the stock can clear its most recent high of $22.16 which could take it higher. DELETIONS FROM OUR WATCH LISTS: We are removing both HAWK and CIEN from the Watch List. At your service, John Hopkins EarningsBeats