EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: AZZ, KMX Monday: NG, TECD MARKET NOTE: Impulsive selling has taken over the market. We saw a brief rally earlier this week in momentum names, but that rally is clearly over. Many of these stocks have been beaten up badly, so please be sure to keep stops in play on any stocks that you are trading. Hedging with covered calls or put insurance on the S&P is not a bad strategy at all given the current market environment. 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: COO - Today's drop provides an opportunity for Re-Entry at the 20 day EMA. A second entry point would be price support in the 131-132 area. I'd keep a fairly tight closing stop beneath 130 in the event the selling intensifies, however. FFIV - This one still looks like one of the best stocks out there, but it's getting caught up in all the impulsive selling. I think the current price level is solid for partial entry, while 98 looks better if the current NASDAQ selloff continues into next week. ROC - Gapped above resistance and now printing a bearish engulfing candle. I'd expect to see lower prices next week if this candle holds into today's close. UA - Initial Entry triggered at 109.18. Second Entry at 104.65 not far away. While losing 50 day SMA support is likely triggering more sellers, I expect that price and gap support will be the most significant areas for the bulls to protect. 104 and 97 (approximately) are those two levels, respectively. VIPS - Gave back all of its recent gains. I still really like this stock, but it's caught up in the NASDAQ downdraft. 130-132 is the likely area of key support. Mid Cap Watch List: GMT - Wouldn't be surprised by a big selloff one day here, but it's certainly held up much better than most. KFY - Most recent high accompanied by a long-term negative divergence, so an upcoming 20 day EMA not nearly as likely to hold. If on the sidelines on this one, I'd be inclined to at least keep some powder dry for a potential 50 day SMA test. YY - Triggered Second Entry at 70.00. Our Closing Stop is at 68.00 and we'll honor it. YY made a huge upside move earlier in the week, providing short-term profit opportunities, but the momentum stocks have been under siege in the latter part of this week and YY has been caught up in it. Small Cap Watch List: PLOW - Fallen back to test price support at 16.90. Should it fail to hold this level on the close, expect another test of support near 16.50, our Second Entry. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com