EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: APA, ARCP, ATW, BRY, BZH, DIS, EGOV, EOG, FWLT, GRPN, IGT, MNST, MTD, NVDA, PCLN, WEN Friday: COV, CTB, LEAP, NTT 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 several interesting candidates for the Watch Lists, but let's hold off and see how deep the current selling goes before considering additional candidates. We already have plenty of Watch List stocks that are pulling back to choose from. 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 - Triggered our final entry at 50.00. We have a closing stop at 49.00 that we'll honor. SCHW - Down 1.25% today, but remains above its price support and 20 day EMA. FSLR - Profit taking has kicked in on this one. It still remains a couple dollars above key price support (and our 2nd entry) at 56.40. MCHP - Down 1.6%, but still close to 2% above our 2nd entry at 41.50. NKE - Lack of volume on recent advance, coupled with long-term negative divergence likely taking a toll. NSC - Might see a close below 86.00, which could set up a more favorable entry closer to 82.00. NUS - After hitting our target at 120.00, NUS is down over 6% today and has triggered our initial re-entry at 111.00. CRM - Big reversal today. This one may have another 52.00-53.00 test of support upcoming. VMC - Closing in on our 2nd entry at 55.00. Mid Cap Watch List: ASNA - Was within a dime of its recent high (short-term price resistance) earlier today before reversing. It continues to hold rising 20 day EMA support. AZPN - Down 2.7%, quickly approaching our 2nd entry at 36.35. CIEN - More weakness sent CIEN down this morning to trigger its 3rd and final entry at 22.40. We'll keep our closing stop at 22.00. FDML - Down more than 4% in its first day of significant selling since its blowout earnings report. GNTX - Continuing its recent slide, setting up perhaps our 2nd entry at gap support at 27.59. 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 - Lost recent price support near 25.00 and fell as low as 23.05 before rebounding. Our next (and final) entry is at 22.40 with a closing stop just beneath at 22.25. NTCT - Down on very light volume. Looks solid technically. THOR - Has moved below the top of gap support. A drop of another 2% or so would trigger our final entry at 40.25. TIBX - Was up earlier on light volume, but has returned to key support near the 24.00 level. We will maintain our closing stop beneath 23.75. UNFI - Has triggered at 2nd entry at 69.00, no doubt due to the weak reaction to Whole Foods (WFM) earnings report after the bell on Wednesday. Our 3rd and final entry is at 65.50, should UNFI get there. VRNT - Our 2nd and final entry at 35.50 is less than 1% away - volume remains very light on the selling. Small Cap Watch List: BLDR - Has triggered our final entry at 7.00. Intraday support and the rising 20 day EMA should hopefully offer up near-term support close to 6.90. ELY - Remains about 1% above key gap support - and our 2nd entry - at 8.11. MMSI - Threatening to close beneath the top of gap support near 15.75. The rising 20 day EMA, currently at 15.14, is the only technical support area between the current price of 15.50 and next price support at 14.40. NTRI - Down over 5% today, but still has a ways to fall to our 2nd entry at 16.75. SIGM - Has triggered our only entry point at 5.20. A close below 5.10 and we're out so clearly we're looking for a reversal from this level. TASR - Triggered 2nd entry at 16.75 and not far from triggering final entry at 15.75. DELETIONS FROM OUR WATCH LISTS: There are no deletions from our Watch Lists today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com