EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: ADM, AFL, AMP, ATW, BP, BWLD, CLX, CME, ETN, GILD, HAIN, IP, KORS, R, SIRI, TM, UNM Wednesday: ADP, AKAM, CNW, DIS, DRIV, EL, FISV, GMCR, GSK, HUM, LII, MRK, MRO, MTD, NLY, PRU, TWTR, TWX, COMMENTS: Our Watch Lists remain quite small. Normally, we'd have a lot more stocks in these Lists. But the current market environment prohibits adding dozens of stocks at this time. Recent market weakness bears out this strategy. We will be adding stocks, but we'll likely be much more patient trying to establish initial positions closer to critical support (long positions) or resistance (short positions) levels. Most of our current Watch List stocks are Large Cap names and that's mostly by design too. In a falling market, small caps generally take the brunt of the selling and that was quite apparent on Monday. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List: FFIV - We will continue to wait to re-enter either at 103.00 or at the rising 20 day EMA, whichever triggers first. PRGO - Light volume, but it quickly rebounded and recovered Monday's losses - nice action. ROC - Still holding onto our Closing Stop level of 67.00. SPLK - Technically, it still looks solid within its uptrend. Mid Cap Watch List: OPEN - We are removing OPEN after today's nice advance. We actually like the stock but earnings will be out on Thursday and today's gains cut into any losses that might have been incurred recently. VIPS - We re-entered this one yesterday at 97.69. We're taking a small two dollar profit today with VIPS currently at 99.94. Given the volatility and how quickly this one moves, we'd rather be safe than sorry. We are NOT removing it from the Watch List, rather just taking quick profits. Small Cap Watch List: TASR - the only Small Cap stock remaining at this time and it's just hovering at its moving averages. DELETIONS FROM OUR WATCH LISTS: We are removing OPEN after its solid advance today off our final entry on Monday. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com