EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: NG, TECD Tuesday: AA MARKET NOTE: The selling continues. The S&P 500 had a negative divergence on its 60 minute chart early Friday morning, which perhaps started the selling. The problem, however, is that negative divergences also appear on both daily and weekly charts so the selling could just be beginning. Warning signs abound and have been present for several weeks. Please be careful and make sure you maintain stops on all trades. 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 - Remains technically sound despite some profit taking today. The rising 20 day EMA will likely provide initial support. COO - Initial Entry and Second Entry have both been triggered today, while a Closing Stop of 127.50 should be respected. COO hit our Target Price quickly after our initial trade. Re-entering is not a bad strategy, but keep that stop in play. 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 - We'll remove ROC if it closes beneath its Closing Stop of 72.75. UA - First two entries have triggered while Final Entry at 96.70 awaits. Momentum stocks have been sold without much of a bounce, with UA included. VIPS - Struggling like so many others. A reversal and strong finish would be bullish while a violation of our Closing Stop of 125.00 would have this one removed from our Watch List today. Mid Cap Watch List: ATK - Bearish engulfing candle on Friday set this one up for more weakness today. Still looks solid technically, although a close above the rising 20 day EMA would be better than the alternative. GMT - Long-term negative divergence finally kicking in. YY - Well below our Closing Stop of 68.00 and will likely be removed from our Watch List at today's close. Small Cap Watch List: PLOW - Triggered our Second Entry at 16.50 and has reversed, but on light volume. Volatility here is fairly strong because of the lack of volume. Otherwise, the action looks bullish if the recovery holds into today's close. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com