EB Watch List Update Report

MARKET NOTE: The first few days of the new trading month have been a bit choppy but today traders have come alive and all of the major indexes are higher. Both the NASDAQ and the S&P are trading above all key technical levels, a positive. On the other hand the Dow remains below all key technical levels, not so great, but at least only affecting a handful of stocks. It's helping that Apple is at least slightly higher today after hitting a 6 month low this morning. In fact one could argue the market has held up quite well in spite of AAPL, the largest market cap company in the world, being down by over 15% at its low today compared to its July 20 all time high. Bond yields are on the rise today with the ten year treasury note up almost 5 ticks at 2.26%. Perhaps some hedging going on ahead of Friday's important monthly non-farm payroll report. Finally, the VIX fell sharply earlier in the session, hitting levels not seen in over a year, and even on a rebound remains down by 8% today as traders confidence builds. KEY EARNINGS REPORTS Companies reporting earnings today (August 5) include: ABX.TO, CBS, CTSH, DISCA, DISH, D, FRT, FIT, ICE, GMCR, PCLN, PGR, PRU, RL, GLE.PA, TSLA, and TWX Companies reporting earnings tomorrow (August 6) include: ADS.DE, APA, DUK, MRO, MNST, NVDA and VIAB BLOGS: Nothing new today but make sure you check out the Behavior Modification case studies on my blog. CANDIDATE TRACKER We added another 27 new stocks today to the Candidate Tracker, so 70 the past two days. Lots of potential opportunities in the days ahead. Remember you can now see EPS and Revenue actuals and estimates for each stock on the Candidate Tracker Report page; makes for easier viewing and a nice snapshot. This is a change from where we used to show the EPS and Revenue data on the chart. You will sill be able to click on a link that will take you to a StockCharts.com chart. Remember that when we add a stock to the Candidate Tracker it has reported earnings fairly recently and we like to first watch the initial market reaction and any subsequent pullbacks that help increase the reward to risk ratio. ADDITIONS TO WATCH LISTS: Starting today, when we add a stock to our Watch List, we are going to provide all important data including entry level(s) stop loss and price target. Then we will add this information to our site along with a chart the same day. This way you will have all important information available right from the start. Also please note that when we say we are adding a stock at the "current price" it is the price the stock is at just before the update to members is sent. So the current price could change some from when we first notify members to when you receive your email. We are adding St. Jude Medical (STJ) to our Large Cap Watch List at the current entry price of $73.66 with a second entry at $70, a closing stop at $68.50 and a target of $85. The details and chart will be added to our Watch List section today. STOP LOSS CLARIFICATION Some members have recently asked why we mostly use Closing Stops compared to Intra Day Stops. The primary reason is we often see stocks move below key support levels while the market is open only to reverse later in the day. MW is a great example. Our closing stop is currently at $58 and the stock dipped below that level intra day the past two sessions only to close above that level by day's end. It does take more effort to monitor closing stops because action is required right into the market close. And sometimes a stock can be hovering right near the closing stop level so it becomes a judgement call. I plan to write something up that will be added to the site to clarify even further and will let you know when that is available. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List C - could use more volume, but push above 59.00 is bullish. COTY - again testing its declining 20 day EMA, currently at 27.69, but will likely need more volume to clear. LEN - struggling last couple days on a relative basis, but it's mostly due to the home construction index falling to test its rising 20 day EMA. There's been no technical damage. Mid Cap Watch List MW - back and forth action here continues with price resistance at 60.00 and the declining 20 day EMA at 60.40 providing key headwinds. Small Cap Watch List KFY - continues its bounce off price support and attempting to clear its two key moving averages - the 20 day EMA and 50 day SMA, both currently at $34.04. There are no Small Cap stocks on the Watch List at the moment DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock hits its stop loss. At your service, John Hopkins, EarningsBeats