EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: AYI, MON Thursday: GPN, MU, SCHN MARKET NOTE: The rally continues and many of our Watch List stocks have benefited. Don't hesitate to book some profits along the way. Earnings season is about to begin again so we'll be able to replace many of the current Watch List stocks with fresh new candidates. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: No new comments at this time. Large Cap Watch List: CAT - Exploding higher as industrials help to pace the stock market's advance today. While the long-term negative divergence remains, volume on the latest breakout is not bad. COO - Provided a second opportunity to profit at our Target Price of 139.00. We'll wait for short-term weakness to re-enter. MCO - Moved up above 83.00 again, not far from our Target Price of 84.00. Taking profits at this level makes sense as the recent consolidation continues. TEL - Breaking out on nice volume today. Bullish. ROC - Failed on its first test of 75.50, which represents short-term price resistance and the declining 20 day EMA. UA - Rallying despite the long-term negative divergence in play. Volume is picking up over recent days so these gains could stick. Given the long-term negative divergence, however, the reward to risk would be set up much better on a pullback to test its 50 day SMA. VIPS - Very volatile, but closing above 158 on Tuesday was nice technically. Appears to want higher prices near-term. Mid Cap Watch List: ATK - Volume increasing of late to support the steady climb back over 140. A close above 144 would likely encourage more sideline money into the stock. KFY - Made the breakout on Tuesday on nice volume, but there is a long-term negative divergence - at least for now. To be on the safe side, we're raising our Closing Stop from 25.75 to 30.00 to make sure we capture profits if the current breakout fails to hold. YY - Close back above 20 day EMA shouldn't be taken lightly. Now we can look for that 20 day EMA to offer up support on any decline. Small Cap Watch List: PLOW - Up nearly 4% from our Initial Entry from just a few days ago. Volume today is quite light, which isn't abnormal for this more thinly traded stock. Any push back into the 18s represents an opportunity to profit, although our Target price remains at 18.60. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com