EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: C, CSX, INTC, JNJ, KO, SCHW, YHOO Wednesday: AXP, BAC, EBAY, IBM, PEP Thursday: AMD, BSX, CMG, GOOG, GS, ISRG, NVR, UNH, VZ Friday: BHI, GE, MS, SLB, STI ADDITIONS TO WATCH LIST: Charles Schwab (SCHW) reported revenues and EPS that topped Wall Street expectations. Volume has been huge today and we like the action. SCHW will be added to our Watch List and an annotated chart will provided later this evening. I would consider initial entry at the current price or you can wait to make sure the strength continues into the close. BRIEF COMMENTS ON WATCH LIST STOCKS: Large Cap Watch List: FOSL - the back and forth continues with today's low again moving just beneath our initial entry price of 117.25. PCLN - attempting to close at its highest level in a week as internet stocks rebound. Mid Cap Watch List: AYI - struggling after hitting key closing price resistance on Monday. BRCD - ditto AYI. Hit resistance and is down today - nothing bad technically though, just normal profit taking. DXCM - breaking out on strong volume. Consider a change in strategy here. Initial entry is being raised to 29.19, the level of the breakout. Second entry could be considered at the rising 20 day EMA. (REVISED CHART TONIGHT) HAIN - testing moving averages overhead. KFY - strengthening further. With each move higher, long-term negative divergence begins to fade. Still, we need to watch for a reversing candle given that negative divergence. Otherwise, continues to look quite strong. SAPE - 20 day EMA, 50 day SMA and short-term price resistance all converging near 15.50 and taking its toll on SAPE today. TIBX - high volume and lots of volatility marking today's action. TIBX traded well below gap support and initial entry of 25.25 earlier today before rebounding. At last check, trading above this level. Close below would increase odds of a move to our second entry of 24.40 (just above gap support at 24.36). VRNT - selling off on increasing volume. We may still see our initial entry at 35.50. Exercising patience here. Small Cap Watch List: SREV - is up roughly 7% from the initial entry point at 11.26. Taking profits as it tests its 20 day EMA from underneath not a bad idea. DELETIONS FROM OUR WATCH LISTS: VCRA - being removed because of volume concerns. It has traded under 100,000 shares in 4 of the last 6 trading sessions. Due to the lack of liquidity, we don't find it to be an attractive candidate. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com