EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: AEO, DKS, PAY Wednesday: WSM MARKET NOTE: Most of the short-term action in the U.S. stock market remains fairly bullish, although we have seen money rotate away from financials, especially banks, after this area of the market led the action the past couple weeks. The volatility index (VIX) continues to show that the market is nervous as well, so price support violations should be respected. ADDITIONS TO WATCH LISTS: We are adding 3 stocks to our Watch Lists as follows: Large Cap: ROC, $5.8 billion market cap, initial entry at Current Price of 78.17. Second entry at 76.17. More details to follow with annotated chart provided on website this evening. Mid Cap: MELI, $4.44 billion market cap, initial entry at Current Price of 100.46. Second entry at 98.00. More details to follow this evening. KFY, $1.41 billion market cap, initial entry at Current Price of 28.34. Second entry at 27.15. More details to follow this evening. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - Continues falling. We have lowered our Closing Stop (cover) to 97.50. Large Cap Watch List: CNQR - Triggered our Second Entry at 111.00. Our Closing Stop is 108.00. LEN - Violated our tight Closing Stop of 41.50 on Monday's close so the latest trade was a loss. We re-entered after selling at 44.00 with a nice profit on our first trade. We still like the stock and will keep it on our Watch List for now. MCO - Consolidating recent gains with our Target Price of 84.00 not far away. TEL - We will Re-enter at the Current Price of 58.26 as it appears to be printing a handle after the recent cup formed. UA - Moving to fresh highs, but the long-term negative divergence is keeping us away at the moment. Mid Cap Watch List: ATK - Has moved below its rising 20 day EMA on an intraday basis. A close above it today would be short-term bullish. SSTK - 88.45 is key closing price support. Our Closing Stop resides about a buck beneath it at 87.50. TTEK - Regaining strength today, could use more volume. Looks solid though given the strengthening MACD. I see this one going higher. Small Cap Watch List: MRIN - Sitting right on our Closing Stop at 10.40. Volume has been much lighter on the way down so a close a penny or two beneath 10.40 could still be worth holding. Otherwise, we may be forced to take our loss. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com