EB Watch List Update Report

Dear Members: MARKET NOTE: Traders are in a foul mood today just a day after the NASDAQ came within two points of its all time high. Right on cue, the VIX is up over 15% as fear has quickly come back into the market. All of the sudden both the Dow and S&P are well below their respective 20 and 50 day moving averages with the NASDAQ back below its 20 day and heading closer to its 50 day. The S&P is right near 2140, a level that has provided decent support on pullbacks. But a much bigger level of support is down near 2120. That's still 20 points lower and lately we've seen traders willing to put money to work on dips. Alcoa reported its earnings this morning and traders didn't like what they saw and heard with the stock down almost 10%. So not a great way to kick off earnings season. If the selling picks up as the day progresses I'll be keeping a close eye on the NASDAQ to see if it closes in on its 50 day moving average, now at 5244. That's an important level to hold as the NASDAQ has mostly been above its 50 day for over three months now. At the moment the trading range on the S&P remains at 2120 to the downside and 2193 to the upside. We're now much closer to the lower end and have not been below that 2120 level since early July. So some important levels that could come into play on further selling. KEY EARNINGS REPORTS Companies reporting earnings today (October 11) include: AA and FAST Companies reporting earnings tomorrow (October 12) include: CSX ADDITIONS TO WATCH LISTS: We added AMBA to our Watch List this morning at a price of $66.99 with a price target of $70.85 and a very tight stop of a close below $66. All details will be added to out site prior to tomorrow's open. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: There are no shorts on the Watch List at this time LONGS: Large Cap Watch List RHT - Stock is down by over 1% on market weakness. As a reminder we have a stop of a close below $77.04. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List DV - Stock is down by 1.3% and has pulled back close to our original entry price. Would like to see it hold its 50 day moving average which is currently at $22.91. EAT - Stock made a decent move higher earlier in the session as it touched its 50 day moving average before pulling back some. It remains above our original entry price and a close back above yesterday's close of $51.02 would show increasing interest in the stock. DELETIONS FROM OUR WATCH LISTS: None at this time. At your service, John Hopkins EarningsBeats