EB Watch List Update Report

Dear Members: MARKET NOTE: Let's examine what happened this morning. The monthly non-farm payroll report came out weaker than expected. This follows yesterday's ISM report which showed a contracting manufacturing sector. Put together they probably put a fork in the chances of the Fed raising rates at its September meeting. But to traders, bad news was good news, with all of the major indexes moving higher. It's perplexing, in the least, to think about cheering a stalled (or maybe slowing) economy and watching the positive effect it has on stocks. So this is where charts come in with the theory that everything going on across the globe is built into prices. So looking at the S&P it shows it is above all of its key moving averages which should be seen as bullish. Yet in looking at the chart closely it remains in going nowhere fast mode; it peaked twice at 2193 and since then has made no progress. So trying to pick out the very select few stocks that can outperform a going nowhere market is like performing precision surgery; it doesn't take much for things to go wrong quickly. It's certainly not the type of environment where you aggressively short stocks. Pull backs are short lived. So this leaves traders in a bit of a dilemma; the S&P is trading in a very tight range, 2193 to the upside and 2150 to the downside; not much room to work with. Let's also remember that even though it has not become a factor yet, September still is the roughest trading month of the year. So if the market is in stalemate road, and we're in a tough month of the year, it makes more sense to be cautious then aggressive because upside potential seems very limited while any pullback that "catches on" could result in a decent correction. Remember one more thing; cash IS a position, just like being long or being short. So when things are iffy like they are now, it's best to remain mostly on the sidelines - especially heading into a three day weekend - while waiting for much better opportunities. KEY EARNINGS REPORTS Companies reporting earnings today (September 2) include: There are no key earnings reports due out today Companies reporting earnings Tuesday (September 6) include: PLAY, MRVL ADDITIONS TO WATCH LISTS: PLEASE NOTE: We will be adding a large number of stocks to the Candidate Tracker over the next few days. Will keep you posted. Will let you know if are 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 DELETIONS FROM OUR WATCH LISTS: No deletions at this time I want to wish everyone a restful holiday weekend and will be back Tuesday morning with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats