EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: HTZ, NAT, SGMS, TECD, UNFI, URBN Tuesday: AEO, DKS, PAY MARKET NOTE: The U.S. equity market has been under pressure much of the day, but after last week's rally a little profit taking isn't such a bad thing. On the S&P 500, look for initial support at 1848 which represents a combination of price and 20 day EMA support. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - We are lowering our Closing Stop to 97.50, effectively guaranteeing ourselves either a winning trade or a flat one. Those wishing to provide more room could continue to use 100.00 as your Closing Stop. Large Cap Watch List: CAT - Thus far holding onto 20 day EMA support, but the long-term negative divergence on the MACD is suspicious and bearish. CNQR - We re-entered on Friday with our Second Re-entry fast approaching at 111.00. FFIV - That long-term negative divergence on the MACD is very ominous. Loss of 20 day EMA support could result in very swift selling beneath 105.00. LEN - We're keeping a very tight Closing Stop on this one below 41.50. Unless we see a recovery in the final two hours, LEN will be stopped out. Mid Cap Watch List: ATK - Failed in its recent attempt to close above 140.00. Pulling back today and testing the rising 20 day EMA. I'd expect this moving average to hold. RRD - Closed below our Closing Stop level on Friday so it's off the report and a loss. We have REMOVED RRD FROM OUR WATCH LIST. If you continue to trade it, it would be best if it could close back over both its 20 day EMA and 50 day SMA. SSTK - Has triggered all of our Entry Points. I'd expect to see a bounce from this level. A strong finish and close over 91.95 would be very bullish. Otherwise, look for more consolidation between 88-92. Small Cap Watch List: MRIN - The selling today is obvious, but volume remains very light relative to what we saw on the advance. I would look for a reversal from the current price. Our Closing Stop is 10.40, which we'll honor for our Watch List purposes. It is a small cap stock and is somewhat volatile, however, so if you'd like to give it more room, you could consider the 10.00-10.25 area. DELETIONS FROM OUR WATCH LISTS: There are no deletions - other than RRD - today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com