I wanted to put out a brief update to my commentary from last night.

The one positive I noted was that a few large liquid growth leaders were acting
"stubborn" and showing excellent relative strength. Indeed, these stocks bucked
the trend once again today, and led the major indices to close well off their
lows in somewhat of a positive reversal day. While the market continues to
sell-off, these stocks continue to base build and, at least for the time being,
are resisting the general market's distribution.

I noted that these stocks' behavior would offer a key clue as to the duration
and severity of this bear phase. I cannot underscore this point enough. Simply
stated, the seven stocks I noted, and a few others (listed below), will let us
know whether the bear phase ends soon, or whether the indices break recent lows.
As I noted, it would be foolish to prognosticate on the outcome and I will leave
that for others to banter about. For now, I note that it remains a positive
that these stocks continue to base-build, resist the selling pressure, and show
excellent strength.

In light of this, I am providing my first watch list in quite some time. This
is not a buy list, but merely a list of companies with superior fundamentals and
that are showing the ability to resist high levels of distribution in the
market. Should the market embark on a sustainable uptrend, many of these stocks
likely will be "go to" leaders. Of course, any continued selling in the general
market likely takes many of these stocks much lower. One should exercise
patience, for there will be ample opportunity to be aggressive on the long side
should the market decide to resolve itself to the upside.

AMZN, PCLN, ISRG, MA, AAPL, BIDU, CMG, GMCR, CROX, UA, LULU, HANS, MAKO, PSMT,
ARCO, CF, POT, NTES, ATHN, CERN, NUS, PANL, V, Z, LVS, WYNN, LNKD, AWAY, ALXN,
VRUS ,JAZZ, QCOR, PRGO, CPHD, SBUX, WFM, SBH, AZO, JCOM, CPA.