EB Watch List Update Report

Dear Members: MARKET NOTE: In my Market Update yesterday I pointed to resistance on the NASDAQ near 5217. That was the exact level it got to before falling back and now today all of the major indexes are substantially lower as they look to retest the most recent lows. Things are starting to look interesting now. Why? Because everyone is now betting against the market. I can see this by looking at the options chain which starts to become important as we move towards options expiration Friday. This is particularly true with the SPY. As it pertains to the NASDAQ it's a bit more balanced with a slight bias on the long side - the QQQ's. But there's no great advantage to the market makers at this time to drive the market a lot lower. A few other things going on today. First, yields on government treasury notes are higher with the ten year at its highest level since mid June; the market is accepting that at some point the Fed could raise rates, most likely in December. Also the VIX is up by 20%; the fear meter is cranking up again. In looking at a chart of the S&P it is at a critical juncture. This is particularly true when looking at the 20 day moving average converging on the 50 day. A move below would be bearish. So far both the NASDAQ and S&P have held above yesterday's lows with the NASDAQ hugging its 50 day. So to me this is a key; that the NASDAQ hold at its 50 day, now at 5147. Why? Because the NASDAQ has been a leader and is currently showing the most strength. I would argue that this is a good level to nibble, especially on the tech side, with a VERY TIGHT stop. So if the NASDAQ closes below its 50 day its cover time. But overall we still need to remain very cautious here with volatility likely to keep everyone on their toes right through the end of the week. KEY EARNINGS REPORTS Companies reporting earnings today (September 13) include: There are no key earnings reports due out today Companies reporting earnings today (September 14) include: CBRL ADDITIONS TO WATCH LISTS: Will keep you posted if I spot something that is worth taking a risk on. 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 There are no Small Cap stocks on the Watch List at this time. DELETIONS FROM OUR WATCH LISTS: None at this time. At your service, John Hopkins EarningsBeats