EB Watch List Update Report

Dear Members: MARKET NOTE: Yesterday's selling did some technical damage and today we are seeing some follow through selling on the NASDAQ. The S&P held the critical 2120 level yesterday though it remains below both its 20 and 50 day moving averages as do the Dow and NASDAQ. The VIX is up by 4% after soaring yesterday on renewed fear. Unfortunately for the bulls none of the major indexes are technically oversold. So there's ample opportunity for the bears to inflict more pain if trader's remain in a selling mood. We'll get the minutes from the most recent Fed meeting later today. It's clear that the market is pricing in at least one rate increase between now and year end with government bond yields at levels not seen in over four months. It's way early in the earnings season but so far traders are not impressed. Earnings reports will start coming out in droves with major banks including Citigroup, JP Morgan and Wells Fargo set to report their numbers this Friday. The move lower in the NASDAQ back below key technical levels has taken some luster off of the tech sector. This is a noticeable shift from the love fest we've seen in tech stocks the past 4+ months and comes just as the NASDAQ got to within 2 points of its all time high. Key now is to see if the bulls can hold that 2120 level on the S&P. Should that go we're likely to head to the 2100 level. To the upside the S&P will need to get back above 2167 in order for the bulls to regain the technical advantage. So the current range is now 2120 to the downside and 2167 to the upside. KEY EARNINGS REPORTS Companies reporting earnings today (October 12) include: CSX Companies reporting earnings tomorrow (October 13) include: DAL, PGR and WYNN ADDITIONS TO WATCH LISTS: Will let you know if there are any additions to the Watch List. Have to be careful here given the technical damage and sour mood. 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 closed below its stop loss of $77.04 so is being removed from the Watch List. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List DV - Stock is flat and remains above all key technical levels. Would like to see it hold its 50 day moving average which is currently at $22.93. EAT - Stock is higher as it tries to move back above its 20 and 50 day moving averages. A close above $51.42 would be bullish. AMBA - Stock closed below its stop loss of $66 so is being removed from the Watch List. DELETIONS FROM OUR WATCH LISTS: RHT and AMBA are being removed from the Watch List At your service, John Hopkins EarningsBeats