EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: AMD, BSX, CMG, GOOG, GS, ISRG, NVR, UNH, VZ Friday: BHI, GE, MS, SLB, STI ADDITIONS TO WATCH LIST: NetScout Systems (NTCT) is under review. They posted excellent top and bottom line results and have traded quite bullishly thus far today. Could be added tomorrow to our Watch List. I'll keep you posted. BRIEF COMMENTS ON WATCH LIST STOCKS: Large Cap Watch List: A - key closing resistance at 52.80. That was the opening gap on Sept 19th. Today's high is 52.64. If you're holding this one, I still like the eventual 57.00 target, but 52.80 could be considered for at least partial profits. If it pulls back to test the rising 20 day EMA, you can always re-enter. SCHW - at last check, trading at its high of the day at 23.65. It may consolidate for a bit, but given its results and the strengthening financial sector, it appears only a matter of time before SCHW sees higher prices. FOSL - can't seem to clear 120.00 resistance. One factor is it is lacking volume to confirm this short-term breakout. CRM - continues to zero in on 53.50 price resistance. Mid Cap Watch List: ASNA - approaching its rising 20 day EMA. 2nd entry at 19.15 only about 1.5% away. BRCD - bouncing off rising 20 day EMA support once again. Looks good technically, but not enough volume today to trigger a meaningful breakout - unless volume picks up significantly in the final two hours. DXCM - has not yet triggered our initial entry of 29.19, which was raised yesterday. GPN - giving back some of yesterday's gain, but on extremely light volume. HAIN - challenging trendline resistance from the tops in September and October. HAR - currently trading above the 70.62 breakout level - good news. The daily MACD is turning higher as well, showing that bullish momentum is building. Failure to close above 70.62 could be problematic. Otherwise, we may be changing our trading strategy tomorrow. Could use more volume in the last two hours to help confirm the breakout as well. LYV - breaking out, but doing so with little volume and a slight long-term negative divergence. No thanks on entry here. RAD - breaking out above 5.25 on fairly strong volume. I may need to reconsider our trading strategy on this one like HAR. UNFI - in breakout territory, but with little volume. I would pass on entering on this breakout. VRNT - hasn't triggered entry, but it's working its way closer to our initial entry at 35.50. Nice volume on today's reversal though. Short-term support can be found close to 36.40 for anyone wanting to begin to build a position earlier. Small Cap Watch List: TASR - not at an entry point, but showing renewed strength on increasing volume. A run to 16.60 shouldn't be ruled out. DELETIONS FROM OUR WATCH LISTS: No deletions today. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com