EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: ADP, AKAM, CNW, DIS, DRIV, EL, FISV, GMCR, GSK, HUM, LII, MRK, MRO, MTD, NLY, PRU, TWTR, TWX Thursday: AAP, ADS, AET, AOL, ATHN, CMI, CS, EXPE, GM, K, LNKD, NTT, NUAN, NUS, NWS, OPEN, PM, PRGO, SNE, SNY, TDC, VMC, VRSN, ZNGA COMMENTS: We are seeing occasional breakdowns and stop losses being triggered, but most of our Watch List stocks have performed well given the extreme volatility and weak equity prices in 2014 thus far. It makes sense to continue to approach the market with a great deal of caution as earnings season begins to slow down. Think about keeping position sizes smaller due to the increased volatility being experienced lately. We will trade, as evidenced by the three additions to our Watch Lists below, but just keep in mind the level of risk you're willing to take. ADDITIONS TO WATCH LISTS: We are adding the following stocks: ATK, $4.34 billion market cap (Mid Cap), enter at current price of 136.45. 2nd entry and more details to follow tonight. CNQR, $6.38 billion market cap (Large Cap), enter at current price of 113.75. 2nd entry and more details to follow tonight. CAT, $58.63 billion market cap (Large Cap), enter at current price of 92.05. 2nd entry and more details to follow tonight. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List: FFIV - Triggered our Re-Entry price of 103.00 and bouncing. PRGO - Great performer, but we are REMOVING FROM OUR WATCH LIST AS THEY REPORT EARNINGS ON THURSDAY. ROC - Weak early, but very strong recovery. TEL - Triggered Final Entry at 54.22 at today's open, been recovering since. Looks good here. Keep that Closing Stop of 53.00 in place. VMC - Another solid performer, but we are REMOVING FROM OUR WATCH LIST AS THEY REPORT EARNINGS ON THURSDAY. Mid Cap Watch List: VIPS - Tested recent low near 95 earlier today and has bounced nicely. Slight L/T negative divergence could send this one to test 50 day SMA. That's where we'll re-enter. Small Cap Watch List: TASR - Big selloff earlier, followed by nice reversal. DELETIONS FROM OUR WATCH LISTS: PRGO and VMC will both be removed as they report earnings on Thursday. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com