EB Watch List Update Report

Dear Members: MARKET UPDATE All of the major indexes are showing nice life this morning as we begin a new trading day and week. So, all must be well? Hardly. Almost anytime you get the type of selling we saw last week, and especially with nothing significant happening between the US and North Korea over the weekend, you are likely to get a bounce, which is exactly what we are seeing. The VIX is down another 20% after soaring last week. That's fine as well but I don't buy the notion that we've seen the last of the selling. So far both the NASDAQ and S&P have moved back above their respective 20 day moving averages, but not by much. Those levels are 2463 and 6323, respectively. The bulls are hoping to close above those levels by days end but I think it would be a mistake to think that everything that spooked traders last week has gone away; it hasn't. I would use this opportunity to lock in profits and raise cash as I do not believe today's gains will hold, especially if the NASDAQ and S&P lose their respective 20 day moving averages. Bottom line; still need to remain cautious here and be careful in case we do see a reversal. And remember; earnings season is winding down, seasonality favors the bears and we've seen how quickly the market can fall when traders get nervous en masse. KEY EARNINGS REPORTS Companies reporting earnings today (August 14) include: Before Market Opens: SYY After Market Closes: None Companies reporting earnings tomorrow (August 15) Before Market Opens: AAP, COH, DKS and HD After Market Closes: A and URBN ADDITIONS TO WATCH LIST Please note we have added a large number of stocks to the Candidate Tracker for a total of 180 at this time. Some of these could become trading candidates but we are going to remain cautious at this time. No additions to the Watch List at this time BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List GE - Stock is being removed from the Watch List as it hit its stop loss last week. MSFT - Stock hit our price target today of $73.40 so is being removed from the Watch List. Great trade! Mid Cap Watch List SGMS - Stock made a very nice move earlier in the session before pulling back some. A close above $35.80 would be bullish. Small Cap Watch List None at this time DELETIONS FROM THE WATCH LIST GE is being removed as it stopped out Friday At your service, John Hopkins EarningsBeats