EB Watch List Update Report

Dear Members: MARKET NOTE: The market got slapped around on Friday and today we're getting some "bargain hunting" as traders look for cheaper stocks. The move higher today is relieving for the bulls but I'm thinking this is just that; more of a relief rally after the big selling on Friday, than anything else. It doesn't mean the market might not tack on some additional points today but I'm thinking the NASDAQ might be capped near 5175, the high of the day. The good news for the bulls is the NASDAQ has climbed back above its 50 day moving average, now at 5134. And if they can clear that 5175 level the next level of resistance would be near the 20 day, now at 5217. The VIX rocketed over 20 early in the session only to pullback 5% and is now resting near its 200 day moving average, now at 16.70. This is still a lofty level compared to where the VIX has been for the past two months. The market does not look the same as it has for those past two months when complacency was king. In looking at the S&P it got as low as 2119 today which is now support. To the upside we're looking at 2155 as the next level of resistance. To me this all adds up to proceeding with extreme caution here with emphasis on preserving capital until we see further evidence that the worst of the selling is over. KEY EARNINGS REPORTS Companies reporting earnings today (September 12) include: There are no key earnings reports due out today Companies reporting earnings Monday (September 13) include: There are no key earnings reports due out tomorrow ADDITIONS TO WATCH LISTS: No additions at this time unless warranted 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 LCI - This stock was added last week and between the initial and second entries had a cost basis of $31.20. It also had a tight stop of a close below its 50 day moving average. It closed below that level at $30.42 on Friday so will be removed from our Watch List, a loss of 2.5%. For those of you who continue to hold watch to see if it closes back above its 50 day, now at $30.62 with the next key level of resistance at the 20 day, just below $32. FL - This stock was added last week with a very tight stop of $64.79. It closed below that level at $64.59 on Friday, a loss of 1.4%. For those of you who continue to hold watch to see if it closes back above its 20 day, now at $64.72 and a move above $65.79 would be bullish. DELETIONS FROM OUR WATCH LISTS: We are removing both LCI and FL from our Watch List as they closed below our stop losses. We believe in staying disciplined if a trade goes against us and closes below our stop loss. At your service, John Hopkins EarningsBeats