EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: AMZN, BCR, BRCM, BTU, BX, BZH, CELG, CMG, CRR, ERIC, GOOG, HAR, HOG, LLY, MCHP, MCK, MMM, MO, NOC, OXY, POT, RTN, UA, UPS, V Friday: CVX, HMC, LM, MA, MAT, MJN, NOV, NWL, TSN, TYC, WY COMMENTS: Trading in a volatile market is riskier as emotions rise and are difficult to contain. We have deliberately reduced our Watch Lists down to the lowest number since our inception - a much more manageable size as we review the likelihood of another market advance. The action today in the market is positive, but this could be nothing more than a quick bounce before a more meaningful drop ensues. Personally, I think everyone should consider trading fewer shares in the foreseeable future - or at least until risk moderates (ie, VIX below 14 for starters). ADDITIONS TO WATCH LISTS: We are adding the following stocks to our Watch Lists: Large Cap Watch List: TEL, $23.7 billion market cap, initial entry at current price (57.65) with second entry at 56.40. More details to follow on annotated chart provided on our website later tonight. Mid Cap Watch List: GMT, $2.7 billion market cap, initial entry at current price (57.92) with second entry at rising 20 day EMA, currently at 55.00. More details to follow on annotated chart provided on our website later tonight. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List: FFIV - Took our profits yesterday. New Trading Strategy: Initial Re-Entry at 103.00 or rising 20 day EMA, whichever triggers first. LEN - Gapped higher this morning and touched short-term price resistance at 39.71. Has pulled back since. Looks good as does the homebuilding industry. ROC - Currently in a bear flag formation. We will remove if it closes beneath 67.00. SPLK - Bounced nicely off yesterday's test of gap support. 81-82 would represent great exit point to take profits. TIF - Volume trends here have weakened considerably, so any close beneath 82.49 would be reason for exit and removal from our Watch List. VMC - One of the best volume trends on our Watch Lists. Mid Cap Watch List: OPEN - has fallen back to a solid support level, but earnings will be out next Thursday. You could consider entry here with a tight 1-2% closing stop. But if it rallies in the next day or two, I'd consider taking profits swiftly. TTEK - Very nice rally after touching our Closing Stop of 27.50 on an intraday basis. VIPS - Indicated yesterday to consider profit taking in the 108-110 range. Today's high was 109.67. If you've been in, nice trade - consider taking profits here. Small Cap Watch List: MMSI - Final Entry triggered on Wednesday. Up nearly 2% today, but on light volume. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com