EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: AGU, DTV, ESRX, FCN, FDML, GRPN, HPQ, INTU, JWN, MDRX, MRVL, NEM, PCLN, PCYC, VIPS, WLT, WMT Friday: DISH Note: We've had several excellent trades with our Watch List stocks over the past several weeks. Given the current market environment, however, it's probably best to keep trading activity light as the market sends us more signals as to its directional intent. We will become more aggressive again, but this is not the environment we want to continually be entering trades. Our only open position will be today's addition - SJM as a Short candidate - and that one will carry a very tight closing stop so as to not take any big chances. ADDITIONS TO WATCH LISTS: We are adding one Short Watch List candidate - our first - to our stable: SJM - $10.23 billion market cap, initial SHORT entry at the current price of 97.59 with a Second Entry at 99.00. We will keep a VERY tight closing stop of 100.00. More details, including an annotated chart later, will be provided this evening. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List: CAT - Pulled back off 60 minute negative divergence. Still looks solid, but we'd like to re-enter lower, perhaps closer to 94.00. CNQR - Failing at resistance after taking profits at 128.03. The 20 day EMA and price support closer to 112.00 would be best re-entry points. FFIV - Love this stock, but failure to hold breakout level on Wednesday with a long-term negative divergence suggests we might have another shot at this one lower. LEN - 40.00 would be initial price support for re-entry. ROC - Struggling at 74.25 price resistance where we took profits. The rising 20 day EMA would represent initial re-entry. SPLK - Great performer, but clearly moving into overbought territory. Don't want to chase, just watching for now. TEL - 58.00 remains the key short-term price resistance level. Eventually I see it going through, but another trip to the 50 day SMA can't be ruled out. Mid Cap Watch List: ATK - We took a loss here, but I still like the stock. The 123.00-127.00 areas would be prime re-entry points. GMT - Breaking out again, but doing so on light volume and with a slight long-term negative divergence. Just watching this one for now. TTEK - Could argue that TTEK remains in that bullish symmetrical triangle. A breakout of this pattern requires heavy volume to confirm so look for a close above 29.00 on increasing volume as a sign of the next bullish move higher. Small Cap Watch List: TASR - Breakout is 18.68 and today's open was 18.64 - getting close. But at last check, TASR was back to 18.41. An interesting re-entry point would be a test of the rising 20 day EMA, currently at 17.26. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com