EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: ADP, BMC, CMCSA, CNW, CSC, EGN, EXPE, FB, GLW, GM, GRMN, GSK, HES, KRFT, MCHP, MET, MUR, PSX, S, SBUX, SHOR, TASR, V Thursday: AAP, ABX, AIG, BCS, BUD, CI, CLX, COP, DISCA, FSLR, HAR, MA, MGM, NEM, OSK, PRGO, TWC, XOM These are just a few of the companies reporting today and Monday. Please check the earnings dates for any stocks you own. ADDITIONS TO WATCH LIST: There are no additions to our Watch Lists today. Keep in mind that we have adjusted our trading strategies to allow for an initial entry at the current price. 2nd and 3rd entries will be provided on the annotated charts that will be provided this evening. If you prefer keeping risks low, even if it means missing out on upside, consider waiting for the later entries instead of taking an initial position at current prices. Also remember that stocks will continually be added throughout earnings season. Therefore, review the stocks identified and consider owning those that are most appealing to you. Don't feel compelled to buy every stock added. BRIEF COMMENTS ON WATCH LIST STOCKS: Large Cap Watch List: A - Down with the overall market today, but there's no technical damage reflected, just more sideways consolidation. BCR - Gapped up again this morning, but it's too stretched to chase. SCHW - Testing gap, price and 20 day EMA support today. FOSL - Made breakout on Tuesday, but did so with lackluster volume. We'll continue to wait on a pullback on this one. HAS - Pulling back today on lesser volume. NKE - Gapped up to a fresh new high, but has done so with weak to moderate volume and a long-term negative divergence on the MACD. NSC - Seeing its first meaningful pause since blowout earnings. Railroads are under pressure today, but we could still use a bit more selling near-term on NSC. Mid Cap Watch List: BRCD - Struggling to clear price resistance near 8.00 and the 20 day EMA, currently at 8.04. CIEN - Triggered second entry today at 23.40. A reversing candle today at price support would be bullish. DXCM - False breakout earlier today on light volume. Market makers are doing what they do best. FOE - After a slight pullback on Tuesday, FOE is breaking out again today on nice volume. Overbought or not, this one seems to want higher prices. HAR - WE ARE REMOVING HAR FROM OUR WATCH LIST AS THEIR EARNINGS ARE EXPECTED OUT ON THURSDAY MORNING. LXK - Very weak today, but volume is fairly light. I still view this one to be in a cup pattern. Came within four pennies of triggering 2nd entry at 34.90 earlier. MEI - Long-term negative divergence playing out. Today's 50 day SMA could mark the end of the selling, although a close below it could trigger selling all the way down to gap support at 22.40. The selling today triggered our initial entry at 26.00. SAPE - Nearing price resistance at 16.00 with earnings on Nov 5th. Probably makes sense to exit now near resistance if you own. TIBX - Testing the bottom of channel support and moving closer to our final entry at 24.40. UNFI - Changing our strategy here. I'll update the chart tonight, but consider the rising 20 day EMA, currently at 70.76 as our initial entry. Second entry would be at price support close to 69.00. Final entry would be the next price support at 65.50. Gap support would be our closing stop. Small Cap Watch List: FSS - Down today and moving closer to the rising 20 day EMA, our initial entry point. SREV - Has sold off down into a solid gap support zone, BUT....SREV reports earnings Nov 5th. If you enter here and SREV fails to hold gap support, you'll have little time before earnings to recover. Therefore, if you trade it, I'd only consider at the bottom of gap support at 10.70 and I'd exit quickly on any price recovery. ZLC - Been struggling recently, but volume has been very light. Changing our strategy on this one. Given the long-term negative divergence, we like initial entry at the rising 50 day SMA, currently at 14.21 and a second entry near recent price support at 13.80. Consider a closing stop beneath 13.50 as we don't want to own this if it retests gap and price support close to 10.40. DELETIONS FROM OUR WATCH LISTS: We are removing HAR from our Mid Cap Watch List immediately as they report earnings on Thursday. We like HAR, but don't like risking our capital into earnings reports. Both SAPE and SREV report earnings soon, so expect them to come off over the next couple days. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com