EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: GPN, MKC, STZ Friday: None MARKET NOTE: We've seen several key technical breakdowns, perhaps none bigger than the Russell 2000's loss of 2014 price support at 1090. Early October also happens to be a very bearish time of the year historically for small caps. So technical breakdowns, together with historical headwinds makes it difficult to consider this higher aggressive and volatile part of the market. Currently, we have just one small cap stock on our Watch List - NX. We'll probably keep it that way until the index itself begins to show some technical improvement. ADDITIONS TO WATCH LISTS: There are no additions today BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: BIDU - Again holding onto price support near 210.00 - at least for now. NTAP - Has finally hit its 50 day SMA, which actually isn't bad news. There's been an ugly long-term negative divergence indicative of slowing upward momentum. This episode of selling has helped to relieve that. Taking a partial entry at the current price and adding down to 39.40 makes technical sense. NKE - Triggered our initial entry at 87.98 yesterday and it's down fractionally today. I like the stock, but would hold off on further entry until the rising 20 day EMA is tested. SPR - If not in this one, today's 50 day SMA test could provide initial entry. 35.90 represents key price support. Mid Cap Watch List: AMBA - Incredibly volatile, but weakness has sent the stock back to test its rising 20 day EMA, triggering initial re-entry. JACK - Very strong relative performance here of late. If you've taken profits, price support close to 64.00 would make sense for re-entry. SNCR - Lost price support at 45.30 with a long-term negative divergence in play. Could see 50 day SMA test down near 42.00 price support. Small Cap Watch List: NX - Down slightly since initial entry just above 18.00. It's actually performed quite well given the big selloff in small caps and the underperformance of home construction stocks. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com