EB Watch List Update Report

Dear Members: MARKET NOTE: More selling this morning as the monthly jobs report came up a bit light. Nothing terrible but not enough to impress the market. If anything it serves as a reminder to the Fed that the economy is still not firing on all cylinders with government bond yields lower after the report was released. Oil continues to fall; pretty much day after day which is not helping the energy sector which in turn is putting some pressure on stocks. The Dow remains the weakest of the lot; badly wounded as it remains below all key technical levels. And the S&P came close to testing its 200 day moving average while the NASDAQ has now fallen below both its 20 and 50 day moving averages. Not much for the bulls to work with here. Maybe one silver lining; the VIX remains relatively low in spite of the recent selling, in fact substantially lower than the last time the S&P tested its 200 day in early July. So no great panic on this most recent correction. It should be noted, as pointed out in Tom Bowley's blog on our site, that historically the first week of August is weak and that the month of August in general is the second weakest month of the year with September being the worst. At the same time, we remain in a bull market; nothing has broken down or suggests anything more than a normal correction here. It's why we're hesitant to short and why we have a relatively few number of active stocks on our Watch List. We would rather go light when the market is showing signs of weakness, knowing there will be plenty of opportunities to take advantage of the weakness at the right time. KEY EARNINGS REPORTS Companies reporting earnings today (August 7) include: CVC, HRS and HSY Companies reporting earnings Monday (August 10) include: AES and SYY BLOGS: Make sure you check out my Behavior Modification case studies on my blog which you can access under the Member section of our site. CANDIDATE TRACKER We currently have over 130 stocks on our Candidate Tracker. In fact we've added 70 this week. We will be removing some of the older ones and adding more as we uncover additional companies that beat earnings expectations. ADDITIONS TO WATCH LISTS: We're going to ease into the weekend with no new additions to the Watch List. The action is so choppy here and if we're patient we could end up with even better risk to reward opportunities. For now let's focus on those stocks on our existing Watch List and be disciplined as necessary. 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 - Stock is fairly flat as it continues to hold its rising 20 day moving average COTY - Going against the grain and for third day in a row as it tries to clear its 50 day moving average at $28.48 which would be bullish LEN - Down fractionally, challenging near term price support near $50 STJ - Been weak recently along with the overall market Mid Cap Watch List No Mid Cap stocks at the moment Small Cap Watch List KFY - Struggling near the $34-34.10 level. Now in a tight range between $33 and $34.10. DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock hits its stop loss. I want to wish everyone a restful weekend and I will be back Monday with my EB Watch List Update Report. At your service, John Hopkins, EarningsBeats