EB Watch List Update Report

Dear Members, Website Maintenance: Our hosting provider is going to be performing some server updates this weekend in an effort to improve site performance and reliability. While we expect there to be minimal impact on service, it is possible that the site might be inaccessible for several hours on Saturday. If you have any questions or concerns please feel free to email [email protected]. We'll also try to post updates on our Facebook page at www.facebook.com/investedcentral. On to today's Update.... KEY EARNINGS REPORTS: Thursday: A, AMAT, DDS, HP, JWN, KSS, MGAM, SBH, TYC, VIA, WMT Friday: CTB 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 - Breaking out to another 52 week high - solid action. FSLR - Moving to another fresh new high. It's now overbought and we could see some profit taking at any time, but the momentum here is strong. I don't believe we've seen the short-term top yet. FRX - Wildly overbought - been a great performer. Certainly couldn't suggest entry at this overbought level, but the accumulation is obvious. GOOG - 1037.43 is closing resistance. We've currently just above that level and volume is light. Nothing wrong with locking in short-term profits if you like to trade short-term. I expect GOOG to go higher, but you might be able to re-enter on the rising 20 day EMA if the overall market weakens. HAR - Has dropped a dollar from the earlier intraday high at 81.75 that came within 7 pennies of 81.82 resistance. HAS - 52.98 is the next closing breakout. The intraday high was 53.00 as it consolidates just beneath resistance. ILMN - Indicated higher risk on this one in Wednesday's update. One of the worst Large Cap Watch List performers today as slowing momentum may be playing a role. Still like it, but a pullback wouldn't be a bad thing. MCK - Increasing volume as it moves closer to closing resistance at 159.72. A breakout today could send MCK higher as volume would confirm. NKE - Keeps moving higher with lesser volume - and a long-term negative divergence. Like the stock, just don't like the price for entry. NSC - 87.88 represents breakout. Today's high? 87.86. PRGO - Hit target at 152.00. It never triggered 2nd and 3rd entry points, but the target has been reached. I'd take profits and look for re-entry initially at the rising 20 day EMA. An updated trading strategy will be annotated on the chart tonight. Mid Cap Watch List: AYI - Made breakout at 103.74 and our target is 107.00. I would consider selling at 107.00 target OR on a close beneath 103.74. If it fails to hold the breakout level, there's a long-term negative divergence in play that could carry it down to its 50 day SMA. ASNA - Down slightly, but the recent uptrend remains in play. BRCD - Approached 8.36 resistance in recent days before selling off down to 8.03 earlier today. Earnings are up next week on BRCD and it will be removed from our Watch List soon. CIEN - Removing with a loss. We have a closing stop at 22.00 and CIEN is trading just beneath that level. But CSCO's earnings report really changed the game on this one as traders bail out of several telecom stocks. I'd take the loss and move on. FINL - The strength resumed with volume on Wednesday and it's continuing today as FINL breaks out. I'll update our trading strategies tonight, but our new target will be near 29.00 given the breakout. AWAY - Breaking out again on large volume - bullish. KFY - Breaking out on increasing volume. MEI - Approaching overhead resistance in the form of the declining 20 day EMA. NTCT - Pulling back slightly after testing overhead resistance at 29.92. I expect another breakout here, likely sooner rather than later. OPEN - Set another new high earlier. It's pulled back from its intraday high, but accumulation here is quite apparent to me and that's bullish. SNX - This one hit our 63.00 target and has continued to move higher, albeit on light volume. I'd avoid for now given the light volume breakout. THOR - 43.21 is breakout, but THOR will need more volume to confirm a breakout. TIBX - Remains close to stopping out. We have a closing stop at 23.75. This one hit 23.48 earlier, but currently is at 23.84. It's possible this is a reversing candle if we see more strength into the close. We'll see. UNFI - Has recovered nicely since triggering 2nd entry at 69.00. I'm looking for a retest of the recent highs near 75.00. Small Cap Watch List: BLDR - Regaining strength after triggering all entry points. LIOX - After watching this one ROAR for the last couple weeks, they may want to change the ticker to LION. 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: CIEN is being removed due to poor performance. TIBX is close to its closing stop but will remain if it closes above 23.75. BRCD will be reporting earnings soon, so look for that one to be removed in the next day or two. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com