EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: DHI, DISH, DKS, MBI, NQ, SINA Wednesday: CSCO, CSIQ, M, NTAP, NTES, WSM 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: SCHW - Today's pullback retests the last breakout level at 23.68. FSLR - Giving back some today, but volume trends and MACD both are strong. ILMN - Challenging recent highs, but doing so on light volume. Original target only 3% higher, so a breakout on continuing light volume is a potential short-term sell sign. MCHP - Breaking out today on nice volume. NSC - Strengthening along with the railroad industry. PRGO - Only 1% from 152 price target. Taking profits with very overbought oscillators not a bad idea. CRM - Volume on the increase as it clears 56.15 price resistance. VMC - Hovering near 155-156, not a bad entry level. Mid Cap Watch List: ASNA - Could use more volume, otherwise a nice looking chart. CIEN - Higher lows printing for 3rd consecutive day. DWRE - a new closing high today is likely. Could use more volume though. GPN - Moving closer and closer to our 63.00 target and the long-term negative divergence is ugly. I'd have no problems taking profits on this one anywhere from the current price to 63.00. AWAY - Awesome response to yesterday's gap lower. Keep in mind that while our target is 41.00, taking profits near price resistance at 34.90 wouldn't be a bad strategy at all. LXK - Showing relative strength once again. LOCK - Up 3.5% today and closing in on initial price resistance at 16.45. Very short-term traders could "lock" in profits here with re-entry on a pullback to the 15.50 area. NTCT - Hit 29.83 intraday, just 9 cents from 29.92 closing price resistance. OPEN - Extending yesterday's breakout. THOR - Hammer last Friday reversed the fortunes of this one. Strong uptrend in play. 43.21 is the level we might feel resistance. TIBX - Continues to be among the worst performers on our Watch Lists. I'd exit on any close below 23.75, particularly if volume accelerates. VRNT - Held 35.50 support and now is trending higher. This could be the pre-earnings run up to 38.00-38.25 to challenge recent resistance. I'd be a seller there. Small Cap Watch List: ELY - Never quite reached 8.11 gap support, but it does seem to be regaining strength finally. LIOX - Check out the accumulation taking place. It's too extended to consider for entry, but a pullback could represent a solid opportunity. Let's exercise some patience here. MMSI - Nice recovery, but on very light volume. NTRI - Down over 5% today, but still has a ways to fall to our 2nd entry at 16.75. SIGM - Showing high volume and a high wave candle (indecision) right at our closing stop of 5.10. Actually closed a penny below at 5.09 on Monday, but volume was suspicious. I'll give it today's close. A close below 5.09 and we'll remove this one as a failed trade. TASR - Has excellent volume trends. 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