EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: BBBY, STZ Thursday: FDO, RAD MARKET NOTE: Options expire next Friday and many stocks have been hit hard over the past few weeks. It's entirely possible that we see some sort of options-related advance to reduce the pain for market makers as options are closed out. The technical side of the equation is mixed with lots of questions to be answered shortly. The first question is whether our major indices can negotiate 20 day EMA resistance on this first push higher. We are going to keep fairly small Watch Lists so long as the overall market outlook remains weak with so many mixed signals. It's boring, but it's also conservative and helps to preserve capital - and in this kind of market, I believe conservatism will pay dividends down the road. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: No comments at this time. Large Cap Watch List: COO - Continues to hold gap support near 130.00. FFIV - Among many stocks testing their 20 day EMAs from underneath. A close above would help its cause near-term. TEL - Short-term price support near 59 held on Tuesday and TEL is bouncing today. UA - Could use more volume on this bounce. If you've entered recently on weakness, you might consider taking small profits on any upcoming 20 day EMA test, then attempt to re-enter lower. VIPS - Volatility here enough to make you sea sick. Key support level has held, however, and now VIPS is once again well above our two entry points. Mid Cap Watch List: ATK - As expected, rallying off 50 day SMA support. Nice action on a technically-healthy stock. GMT - Bouncing to test 20 day EMA resistance from underneath, but with that long-term negative divergence in play, I would not be expecting a successful break through. Small Cap Watch List: PLOW - Currently stuck between price support and price resistance at 16.50 and 17.60, respectively. 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