EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: CSX, INTC, JNJ, KO, SCHW, YHOO Wednesday: ABT, ADTN, AXP, BAC, COF, CS, GOOG, IBM, KMI, SNDK, STLD MARKET NOTE: The NASDAQ has been a major underperformer and is now testing a very critical neckline support level just beneath 4000. Printing a lower low and a downsloping neckline would suggest further weakness ahead - and that's what we have right now. Given the fact that max pain resides 5-6% higher, a bullish reversal today or in the days ahead could portend a short-term rally to perhaps test the falling 20 day EMA. Other than that, however, signs are mostly bearish right now. 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: CAT - Still not far from its recent high close, despite all the selling in the overall market. Great relative strength here. TEL - This is another that is just a couple solid days away from printing a fresh high. Be careful if 57-58 support is lost. UA - 2 for 1 stock split simply cuts entry points in half. For instance, our Final Entry was at 96.70. That now becomes 48.35. Current consolidation is from 50.50-54.00. VIPS - Squeezing in a triangle with long-term trendline support near its current price while the short-term trendline resistance hovering closer to 150.00. This one is extremely volatile, we're keeping a Closing Stop at 125.00. Mid Cap Watch List: KFY - Still trading bullishly given the trading environment in the overall market. The initial key support is gap support at 27.15. Small Cap Watch List: PLOW - Just three days removed from testing price resistance at 17.60, PLOW is back testing price support at 15.50. A close below 16.25 should be respected, especially on an increase in volume. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com