EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: CREE, FOSL, VAL Wednesday: CSCO, CSIQ, DDS, DE, IAG, M, NTAP, NTES, VIPS MARKET NOTE: Our major indices are struggling again after a very brief bounce. Technical indicators suggested the bounce would likely be quick and more impulsive downward moves in the NASDAQ and Russell 2000 are confirming my belief that we should be very cautious given the current market environment. I believe this is the start of further weakness in equities. Before the selling is over, I would not be surprised by a total correction anywhere from 10-20%. From there, I'd expect the market to resume its upward trend. Obviously, I'll be following technical developments to adjust our trading strategy on the fly. ADDITIONS TO WATCH LISTS: There are two additions to our Watch Lists today as follows: Short Watch List: MTW - $3.68 billion market cap company. We like short entry at the current price of 27.21 and again on a 20 day EMA test (currently 28.76). More info will be available on our website later this evening with an annotated chart provided. PVA - $885.59 million market cap company. We like short entry at the current price of 12.71 and again at price resistance at 13.72. More info will be available on our website later this evening with an annotated chart provided. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no stocks on our Short Watch List at this time, although MTW and PVA have just been added above. Large Cap Watch List: FDX - So long as it holds 145.00 support, I'm fine with holding on the long side. The 154.00-155.00 level would represent a profit taking area. JWN - Struggling with the overall market and there is an important retail sales report due out on Wednesday morning. For now, the trading range on JWN is 66.68-70.21. Mid Cap Watch List: There are no Mid Cap Watch List stocks at this time. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com