EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: BHI, GE, MS, SLB, STI ADDITIONS TO WATCH LIST: NetScout Systems (NTCT) will be added to our Mid Cap Watch List. NTCT reported revenues and EPS that blew away Wall Street estimates and is one to keep an eye on during the next quarter. Google (GOOG) will be added to our Large Cap Watch List after stunning Wall Street with its results last night. Both of these stocks will have annotated charts with trading strategies added over the weekend. BRIEF COMMENTS ON WATCH LIST STOCKS: Large Cap Watch List: SCHW - small fractional gain today, adding to the recent strength. Financials are lagging a bit today, contributing to the lackluster performance. FOSL - not much volume, but it appears as though this one will finally make a meaningful close above 120.00. 126.50 could be just around the corner. MELI - volume picking up slightly as it clears 140.00 closing resistance. NKE - not huge volume, but our 75.00 target has been triggered with NKE actually breaking out on moderate volume today. Hitting our target does not mean the stock will be removed, but it will change our trading strategy. That strategy will be updated over the weekend. CRM - could use more volume as it's cleared short-term resistance at 53.50. Mid Cap Watch List: AYI - breaking out today, but on very average volume. We like the stock, but would not enter on this breakout due to volume concerns. BRCD - threatened breakout earlier, rising above 8.36 on an intraday basis. It has since moved back below 8.30 and volume is just moderate. DXCM - daily MACD continuing to strengthen. We're still waiting for a 29.19 test, but the stock is technically healthy. FINL - 24.87 is the closing breakout level, which is very close to our 25.00 target. Today's intraday high was 24.66 so it's getting close to a profit taking area. GPN - quickly approaching my originial target of 57.00. HAIN - breaking trendling resistance and appears headed for price resistance near 82.50, which is the target. HAR - volume on yesterday's breakout turned out to be "ok". We may adjust our trading strategy on this one, I'll give it some thought over the weekend. KFY - going up day after day. The RSI here is now 79 - very overbought. It could go higher near-term, but the longer it remains technically overbought, the harder the fall will likely be when the selling begins. EGOV - making a HUGE breakout today with very heavy volume. 23.81 would now represent the best initial entry, but earnings is only a couple weeks away. We'll keep watching this one, but it might be unlikely we'll trade it. UNFI - has made another breakout. 68.99 could be considered for entry on a pullback. Small Cap Watch List: Most of these stocks continue rising without much of a pause. ZLC did manage to pull back to test its rising 20 day EMA, but that was not an entry point previously discussed so we'll continue to watch for now. DELETIONS FROM OUR WATCH LISTS: No deletions today. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com