EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: WSM Thursday: ALU, ARO, DG, PLUG, ULTA PLUG is a small company but has been a very actively traded stock lately and an extremely volatile one, so beware if you own. MARKET NOTE: The good news is that the market is reversing off earlier lows, especially since we had a very weak day on Tuesday as well. Just keep in mind that another breakout could be accompanied by a long-term negative divergence on the daily MACD. So warning signs do still remain. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - Showing strength today, we are keeping our Closing Stop at 97.50. Large Cap Watch List: CAT - Testing 20 day EMA, but daily MACD weakening. 50 day SMA test not out of the question so we'll continue to watch this one from the sidelines for now. CNQR - Piercing candle or bullish engulfing candle at support would be very nice. Our Closing Stop of 108.00 will be honored if earlier weakness resumes. FFIV - Negative divergence remains an issue as FFIV consolidates. 50 day SMA would represent best entry. ROC - Attempting to print a reversing candle after our initial entry on Tuesday. TEL - Re-entered at 58.26 on Tuesday and we'd consider a Second Entry at 56.75 with a Closing Stop of 56.00. Our Target Price is 60.00. UA - Negative divergence on MACD is the primary issue here. If period of consolidation helps to unwind daily MACD back to or near centerline support, we'd like entry. Mid Cap Watch List: ATK - Lost 20 day EMA support and is now at 50 day SMA support. Still like this one based on strong volume trends and expect reversal to upside soon. KFY - Volume is light today, but up is up. This one could still work down towards the top of gap support at 27.15. We'll see. MELI - Intraday weakness this morning took MELI down to 98.04, just four pennies from our Second Entry and testing its rising 20 day EMA. Nice reversal since. A strong finish would be bullish. SSTK - We honored the Closing Stop here of 87.50 so SSTK will be REMOVED FROM OUR WATCH LIST. I do like today's reversing candle if it sticks into the close, however, so if you've held, you can consider 82.46 (gap support) as a closing stop going forward. This would make more sense if you bought at the 2nd and/or 3rd entry points, having a lower average entry point. TTEK - Testing price support just above 30.00 on very light volume. Would like to see the 30.15 area hold at today's close. Small Cap Watch List: MRIN - Violated our Closing Stop at 10.40 on Tuesday's close. If you held, you could consider a lower closing stop in the 10.00-10.25 area - even gap support at 9.86 if you like - but obviously the longer you hold the more potential loss you'd have to absorb. We are REMOVING MRIN from our Watch List. DELETIONS FROM OUR WATCH LISTS: There are no additional deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com