EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: DRI, TIF Monday: None MARKET NOTE: The latest rally is actually being supported by several key (and bullish) sectors/industry groups. As a result, if we make the breakout today, I'll begin to look to add more names to our Watch Lists. I hesitate currently because we do want to remain somewhat cautious with mixed signals everywhere. A high volume breakout, however, with leadership from banks, transports and semiconductors would help to ease my concern, especially if it coincides with a breakdown in treasuries and resulting higher yields on the 10 year treasury. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - Back and forth continues. Yesterday's move below 96 support now appears to be a head fake as short-term strength has returned. The downtrend is still in play, however. Large Cap Watch List: CAT - 94-98 is the current trading range. The recent consolidation has enabled CAT's MACD to move closer to centerline support, a positive development. FFIV - Similar to CAT in that its daily MACD has unwound close to centerline support. That would help to support a breakout above 116 if one were to occur. MCO - Has been rangebound with 84.00 serving as short-term price resistance on a closing basis. ROC - Today's intraday low once again approached short-term price support just above 76. Nice rally off of it. TEL - Breaking out on strong volume. This breakout measures to 66 in time. Very bullish. Mid Cap Watch List: GMT - Be careful on a breakout here as volume is weak and the daily MACD shows a nasty long-term negative divergence in play. KFY - The strong is getting stronger. Overbought for sure, but strengthening momentum suggests KFY is not done. MELI - Trying to hang onto price support near 95.00. We have a Closing Stop just beneath that level at 94.00. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. 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