EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: None Monday: HTZ, NAT, SGMS, TECD, UNFI, URBN MARKET NOTE: Today's action is bifurcated with the Dow Jones higher and the other indices flat or lower. The under the surface signals have improved, especially with banks and railroads attempting breakouts to fresh 52 week highs. We need to remain somewhat cautious for now, however, and that means fewer positions and fewer shares to me. We are deliberately keeping our Watch List on the small side to be better able to manage these stocks on a more nimble basis. For those of you that are fairly new to our service, most of these stocks are reflected with multiple entry points. If you consider yourself a more aggressive trader, you'll likely find better results by entering these Watch List stocks at each of the entry levels mentioned. If you're more conservative, though, you might consider being more patient and seeing if you can acquire these stocks at 2nd or 3rd entry points, minimizing your risk. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - Closing beneath its 20 day EMA and 50 day SMA, both of which are near 97.50, would be more bearish for sure. If a hammer prints on these moving averages at the close (possibly marking a short-term bottom), you might book small profits and move on. Large Cap Watch List: CNQR - We are adjusting our trading strategy on this one. We exited recently near the 128.00 level and we like initial Re-entry at the current price (115.76) and again at 111.00. Consider a Closing Stop beneath 108.00 and a Target Price of 128.15. FFIV - Continues to perform well, but the long-term negative divergence keeps me on the sidelines on this one. LEN - After taking our profits at 44.00, we are adjusting our trading strategy on this one as well. We like initial Re-entry at the current price (42.15) with a tight Closing Stop beneath 41.75 and a Target Price of 44.25. Mid Cap Watch List: ATK - Again attempting to clear 140.00. Could use more volume to confirm such a move. RRD - Volume is moderate and we have a tight Closing Stop at 18.50 that we'll honor. At last check, RRD was trading at 18.45. If you're looking to give it a bit more room, there should be some gap support at 18.36, but I don't see much support below that level. SSTK - Approached Second Entry at 92.00, nearly testing its rising 20 day EMA, which resides at 92.61. I like the stock and the recent drop is improving the reward to risk substantially. TTEK - Continues to hold its breakout level with a strengthening daily MACD. Looks good. Small Cap Watch List: MRIN - Light volume consolidation continues. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com