EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: APC, BIDU, IDTI, PFG, SU, SYY, TTWO, YUM Tuesday: ADM, AFL, AMP, ATW, BP, BWLD, CLX, CME, ETN, GILD, HAIN, IP, KORS, R, SIRI, TM, UNM COMMENTS: The breakdown across our major indices - if it holds into the close - would suggest that the recent weakness is more than just a brief period of profit taking before the bull market resumes. Instead, it appears as though the bias in the market is likely to be lower as the market corrects. The downside target I'm looking for initially on the S&P 500 is 1690-1700, which represents the measurement on the breakdown beneath price support at 1770-1775. All of this suggests that we need to be vigilant about taking profits as they arise and also be very aware of closing stop levels. In a whipsaw, highly volatile market like we're in, gains can turn into losses very quickly. We will be looking for potential short Watch List candidates on bounces in the market to add to our long Watch Lists. Most of our Watch List stocks have performed well on a relative basis, given the overall market behavior. But there are definitely a few that could potentially violate their respective Closing Stops today. If they do, we'll remove the stocks. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List: FFIV - New Trading Strategy: Initial Re-Entry at 103.00 or rising 20 day EMA, whichever triggers first. FFIV has pulled back after hitting our 110.00, but we're wait to see if we can re-enter at 103.00. LEN - Down today with the market, but LEN still looks solid technically. PRGO - Nice hammer printing on its key moving averages. ROC - Trading down near our Closing Stop of 67.00. If it closes below, it'll be removed from our Watch List. SPLK - Approached that 103.00 support level again today and has bounced. TEL - Triggered our Second Entry at 56.40, but came up short of triggering our Final Entry at 54.25. A close above 56.00 today would be bullish. TIF - Looks to stop out today beneath our Closing Stop of 82.42. VMC - the closer this one gets to 58.00, the better the buy signal. Mid Cap Watch List: GMT - We're entering our Second Entry right here at 55.41. Came up 5 pennies short of its 20 day EMA test, but we like it here. Our Final Entry is 54.00 should it get there. OPEN - Triggered Final Entry at 72.00. Will have to remove in the next couple days as earnings out later this week (after the close on Thursday). If it moves back up to 75.00-76.00 before earnings, we will remove. TTEK - Moved within 28 cents of our Target Price of 30.00 before falling back. Been volatile lately, following the lead of the overall market. VIPS - We are re-entering this one at the current price of 97.69. Our Second Entry would be 90.00. This one is VERY volatile, so make sure it's appropriate given your own risk tolerance. Small Cap Watch List: MMSI - Currently trading beneath our Closing Stop of 13.95. We'll remove it from our Watch List if it doesn't recover by today's close. TASR - Going against the grain, rising more than 5% today after it was announced they would join the S&P SmallCap 600 index. Technically, it bounced where it needed to - at gap support just below 16.00. DELETIONS FROM OUR WATCH LISTS: TIF and MMSI are likely to stop out and ROC may do the same. When our Watch List stocks violate their closing stops, we cease trading them and remove them from future trading consideration. We only want the best fundamental AND technical stocks on our Watch Lists. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com