EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: CSCO, CSIQ, M, NTAP, NTES, WSM Thursday: A, AMAT, DDS, HP, JWN, KSS, MGAM, SBH, TYC, VIA, WMT 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 - REPORTS EARNINGS TOMORROW. THUS, IT WILL BE REMOVED FROM OUR WATCH LIST IMMEDIATELY. SCHW - Today's pullback retests the last breakout level at 23.68. FSLR - Today it's the bulls' turn. Breaking out to a fresh new high. FRX - No stopping this one. Very overbought near-term, couldn't argue with taking profits. HAR - 81.82 represents closing resistance. HAR came within 17 cents of this level earlier. HAS - Rallying nicely off recent 20 day EMA test and volume is returning - good sign. ILMN - Should think about taking profits here. Very light volume so even if a breakout is made, the light volume plus the negative divergence suggests the risk of holding here is high. MCK - Consolidating on light volume between 155-160. NKE - Breaking out yet again with light volume. The long-term negative divergence on the daily MACD here is UGLY. Would not consider for entry, instead would sell if I owned. NSC - Can it clear 88 on a closing basis on this push? Could use more volume. Mid Cap Watch List: AYI - Threatening another breakout, could use more volume. Only a couple bucks away from 107 target. Consider taking profits if still in. ASNA - Breaking above 21 and now up more than 7% from initial entry. BRCD - Hit 8.31 earlier, just a nickel below 8.36 resistance. Given that earnings will be out very soon, I'd consider taking profits on this strength. CRR - Loved the high volume breakout. Volume has come out of the stock, but we could use a bit of selling. CIEN - Appears to have turned the corner at 22.35 gap support. Would like to see continuing strength in the days ahead. FINL - Increasing volume supporting this move. Look for recent highs near 26 to be tested. GNTC - Nice bounce off 20 day EMA support today. 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 - Hit short-term price resistance at 34.90. Volume is strong so a breakout above 34.90 would be confirmed. If it fails, we may see some consolidation ahead. LOCK - Cleared closing resistance at 16.45 at Tuesday's close. Volume has surged as LOCK moves up another 5.75% today. NTCT - Is currently testing closing price resistance at 29.92. A breakout above would be great, although NTCT could use a bit more volume to confirm. NUVA - Breaking out with increasing volume. OPEN - Setting yet another closing high today. SNX - 62.96 represents breakout. Tuesday's close was 63.00 and it's currently trading 63.02, but there's been no volume to confirm the breakout. I'd take profits if in. THOR - Showing continuing strength, but on light volume. 43.21 is a level of resistance where you could consider taking profits near-term, especially if the volume remains light. TIBX - Potentially printing a reversing bullish engulfing candle today. Volume is light - it would be more bullish if volume was heavier, indicative of market maker participation. Still, the reversal is welcome relief as TIBX has been on the verge of stopping out. Small Cap Watch List: BLDR - Continuing to bounce off its recent 20 day EMA support. Volume is light, however. LIOX - Moved above 6 earlier today. That represented more than a 40% gain since adding to Watch List a couple weeks ago. Crazy. MMSI - Seems to be uptrending back towards price resistance at 16.55. NTRI - Down over 5% today, but still has a ways to fall to our 2nd entry at 16.75. SIGM - Like TIBX, nearly stopped out. Decent finish yesterday encouraged more buyers today with SIGM higher by 3.5%. TASR - Up more than 7% today and it's NOT light volume. Just a matter of time before resistance near 18 is cleared. DELETIONS FROM OUR WATCH LISTS: A will be removed from our Large Cap Watch List as they report their quarterly results on Thursday. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com