EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: A, ABX, AIG, ALU, APA, BG, BRCD, CLF, DBD, ECA, GNRC, GT, KRFT, MFC, PCYC, PEP, RIO, SON, TRLA Friday: CPB, H, ITT, LPNT, PBR, RRGB, SJM NOTE: Yet another strong rally in the markets today despite news that should have armed the bears for battle. While I've been looking to establish positions on a "Short Watch List", the continuing underlying bullishness in equities makes this an almost useless task. We'll continue to focus on the strongest quarterly reports for long trades for now. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List: LEN - Nice bounce earlier off its rising 20 day EMA, holding onto 40.16 price support in the process. ROC - Huge recovery today bringing our Target Price of 74.25 back into play. We'll take profits and move to the sidelines if it hits. TEL - Hadn't noticed previously, but a negative divergence is present on TEL on its weekly chart. As a result, we're going to move our Closing Stop from 53.00 to 56.00 to ensure we have little, if any, loss from this trade. If you're up on this one, you certainly could take small profits here. Mid Cap Watch List: ATK - Attempting to print a reversing candle today on its 20 day EMA. This wouldn't be a bad initial entry point if you're on the sidelines. GMT - Caught fire today, having a HUGE day and challenging recent closing highs just above 60.00. While we have much higher ultimate Target Price of 69.00, you certainly could book some profits at this level. TTEK - Continuing to squeeze in a symmetrical triangle. VIPS - Breaking out again, but doing so on suspicious volume and with a nasty long-term negative divergence. It may keep going higher, but I wouldn't own it - too risky given the current technicals. Small Cap Watch List: No comments today. DELETIONS FROM OUR WATCH LISTS: There are no scheduled deletions today, however, stocks will be removed if they violate our Closing Stop levels. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com