EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ALU, AMBA, CIEN, COO, COST, JOY, KFY, KR, PLCE, QIHU, SPLS, TFM, VIP Friday: None MARKET NOTE: The bulls are trying hard to rectify some of the warning signs that have surfaced recently that suggested the market could be in a topping process. Financials have moved back into a leadership role, which has shown to be extremely important to sustain market advances. Also, the defensive group leadership has subsided over the recent one week timeframe. I'll be looking to see if this continues. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - Bouncing off rising 20 day EMA and 50 day SMA support. This should be viewed bullishly for now. It's currently stuck between those moving averages (support) and 100.01 closing resistance. Let's see which one goes first. Large Cap Watch List: CAT - Nice move up today, but attempting to break out with a long-term negative divergence in play. Volume is moderate. If you own, consider selling half at the current price and see if the breakout occurs. If I held, I'd be thinking about raising my closing stop on a breakout to 97.50. CNQR - Failed to clear its 20 day EMA and now testing recent lows. I'd be careful with this one, looks much better for entry in the 110-113 area. FFIV - Given that nasty long-term negative divergence, this one could really use a period of consolidation or outright selling. LEN - Solid price support near 42.00 on further weakness. The rising 20 day EMA (42.10) also resides near that level. MCO - Moving in the right direction and nearing our Price Target of 84.00. Don't hesitate to lock in profits, been a good one. TEL - If you took profits recently, the rising 20 day EMA could provide a re-entry point if you so desire. UA - Rising 20 day EMA is at 110.47 and provides a solid entry for those waiting. Mid Cap Watch List: SSTK - Could not break out yesterday above 102.84 and today selling on light volume. Stock still looks bullish, but could use a pause down to other entry points. We'll see. TTEK - Following through after its breakout above 30.14 - very bullish action indeed. If you've held, consider raising closing stop to 30.00 and let it ride for now. Small Cap Watch List: MRIN - Consolidating in its gap support zone on lighter volume. Nothing wrong technically, likely to require some patience more than anything. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com