EB Watch List Update Report

Dear Members: MARKET NOTE: China's surprise devaluation of its currency has traders on edge today with all of the major indexes down over 1% and yesterday's nice gains evaporating. In addition to stocks being lower bond yields are down as well with the ten year treasury note now at 2.13% as it threatens to close below its 200 day moving average for the first time since late May. It's reminding traders that the Fed won't be raising rates as quickly as some analysts and Fed officials have been predicting. Oil is getting hit hard as well today to not much being spared. How worried are traders about the overnight developments? Not as much as you might think with the VIX still at the lower end of the historical spectrum (Some perspective here; all time high close to 90; all time low close to 9; currently near 13.) So while China's surprise move has taken the wind out of yesterday's sails you can believe the market is already looking for what's next with a limited number of major earnings reports, the usual slate of major economic reports and no big Fed announcements or reports due out this week. What's really going on is continuing consolidation; the S&P is pretty much where it was at the beginning of December of last year. And at this particular moment the 20 and 50 day moving averages are exactly the same; 2095. Thus, the continuing stalemate we've experienced all year with neither the bulls or the bears able to take control of the action and making it even more important to key in on stocks that hold up when the market is shaky. KEY EARNINGS REPORTS Companies reporting earnings today (August 11) include: CSC, SYMC and ZBRA Companies reporting earnings tomorrow (August 12) include: CSCO, M, NTES and NWSA ADDITIONS TO WATCH LISTS: As a reminder, we added Rubicon Project Inc (RUBI) to our Small Cap Watch List yesterday with initial entry at initial price of $15.87. The chart and all pertinent information has been added under the Watch List section. 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 - Back down to support area in the $57.50-$58 range as this stock continues to consolidate COTY - Please note that this stock is set to report earnings this Thursday morning, August 13. We are going to take this one off a winner at the current price of $29.54 as we never hold stocks into earnings reports and no need to take on additional risk. GREAT TRADE! LEN - Stock is going against the grain with the recent bounce coming on light volume and the MACD testing center line support. Mid Cap Watch List No Mid Cap stocks at the moment Small Cap Watch List KFY - Stock is straddling its 20 and 50 day moving averages RUBI - Just a reminder that our second entry on this stock is at $15.40 DELETIONS FROM OUR WATCH LISTS: We are removing COTY from our Watch List. There are no other deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. At your service, John Hopkins, EarningsBeats