EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: ATVI, CBS, CHK, CNQR, DUK, DVN, DXCM, FSS, HSP, HUM, LAMR, MMC, POM, PRU, QCOM, RIG, RL, SCTY, TSO, TWX, WFM Thursday: APA, ARCP, ATW, BRY, BZH, DIS, EGOV, EOG, FWLT, GRPN, IGT, MNST, MTD, NVDA, PCLN, WEN These are just a few of the companies reporting today and tomorrow. Please check earnings dates for any stocks you own. ADDITIONS TO WATCH LISTS: 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 - Continues to consolidate in the middle of its 50-53 trading range. SCHW - Basing after its last push higher with earnings. Appears poised for anotehr rally with its RSI back down in the 50-60 area. MCK - Very weak early in the session, but has strengthened recently. Volume trends are very strong here. NKE - Will a reversing candle (dark cloud cover) print today? If so, be careful because a long-term negative divergence is present. NSC - Tested recent low at 86. A close below that level would likely push NSC closer to its 20 day EMA. PCLN - REPORTS EARNINGS TOMORROW AND IS BEING REMOVED FROM OUR WATCH LIST AT THIS TIME. CRM - Nearly hit resistance that the recent high before reversing. Respect resistance until CRM can break above it on solid volume. VMC - Is down approximately four bucks from its earnings-related high above 60. Next entry is at 55.00 and the last trade was slightly above 56. Mid Cap Watch List: ASNA - Big red candle today not so great, but it continues to hold at its rising 20 day EMA. FINL - Printed another recent low beneath its 20 day EMA, but is trying to close back above this key moving average. If we close below the 20 day EMA, the rising 50 day SMA would be next. GNRC - Remaining patient here, but current weakness is likely to set up a nice opportunity. GPN - Has shown little weakness since breaking above 57. Today's latest breakout, however, comes with light volume and a long-term negative divergence. I'd be a seller if I owned. LXK - Has been very volatile of late, but the rising 20 day EMA seems to be offering up nice support. MEI - Down nearly 7% today with price support near 25 once again being challenged. EGOV - REPORTS EARNINGS TOMORROW AND IS BEING REMOVED FROM OUR WATCH LIST AT THIS TIME. NUVA - Bearish engulfing candle printing, but volume is lessening. Any pullback likely to be short-lived. RAD - Long-term negative divergence finally kicking in? If so, could see quick selloff. Changing our strategy here. Like entry at 4.75, 4.50 and 4.25. THOR - Second entry triggered at 41.50. TIBX - Updated chart. Rallying off the bottom of trendline support (as adjusted). Needs to continue. VRNT - Several tails (recent lows) near 36.00 on light volume. We like entry here and again at 35.50 with a closing stop beneath 35.25 (strategy change). Small Cap Watch List: BLDR - Weakened to 7.09 earlier, but has since recovered to 7.20. A close above 7.25 could signal a short-term reversal back to the recent highs. ELY - Continuing its slow drift towards the top of gap support at 8.11. SIGM - Being accumulated in the 5.30-5.40 gap support range? DELETIONS FROM OUR WATCH LISTS: The following stocks are being removed from our Watch Lists as their earnings are expected out on Thursday: PCLN, EGOV Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com