EB Watch List Update Report

Dear Members, Thanks to everyone that has sent in suggestions to improve our service. We take every e-mail very seriously and while we can't make changes for every individual member's request, we will review each suggestion to determine (1) if it's feasible to make the change, (2) if it can be done without an excessive amount of time involved on a regular basis and (3) if it improves the quality of our service for all members. In order to answer that last question, we will occasionally send out surveys to members so please respond to them in order to have your voice heard. We've already had a few requests for us to send out an e-mail when a Watch List stock hits an entry point. I'll be honest and say I'm not a big fan of that idea. First, that's the equivalent of a "buy alert" to a large group of traders. In this line of business, I'm very concerned about some traders taking on more risk than they should. I do my research on the fundamentals (earnings) and technicals, and annotate these charts in advance prior to potential entry points being triggered so that each of you can do your own due diligence, whatever that might be, in order to determine if a trade is right for you given your own personal financial situation and trading style. There are a couple of alternatives. First, if you like a particular stock that's on one of our Watch Lists, you can put in a limit order at or near the entry points. That way, if the entry point is hit, you buy it and don't need notification from EB.com. Another alternative is a feature at StockCharts. I haven't used it, but I believe you can set up alerts at StockCharts so that if a stock hits a certain price, they will send you an e-mail. I've also made a change in the report below to provide a brief commentary on SOME of the stocks on our Watch Lists. Hopefully, this will provide you more helpful guidance. We will continue to look at every suggestion and implement changes that we can technologically make and that improve our service. On to today's update... ADDITIONS TO WATCH LIST: I have reviewed earnings the past few sessions and have yet to find any stocks that meet our stringent requirements. There have been a few earnings beats, but technically we haven't seen the reaction to those earnings that we like. Therefore, I'm not suggesting that we add any additional stocks to our Watch Lists at this time. BRIEF COMMENTS ON WATCH LIST STOCKS: Large Cap Watch List: A - stuck in the gap zone between our two entry points. NKE - very nice bounce off initial entry point. Target is 75.00, where NKE could find additional overhead supply. PCLN - Wednesday's low came very close to our initial entry point. VMW - has violated the top of gap support and this one will report earnings in the next couple weeks. A trip to test the 20 day EMA from underneath might not be a bad spot to take profits. Mid Cap Watch List: AYI - bouncing off initial entry and support. ASNA - has triggered an initial entry point. Flat today, but long-term weekly chart is improving. Second entry approaching on further weakness to 19.15. BRCD - has triggered initial entry at 8.00. FINL - has triggered initial entry at 20 day EMA. GPN - I really like this one, but after breaking down below the top of gap support on Tuesday, I'm hoping for a test of the rising 20 day EMA. HAIN - triggered first entry on Wednesday at 73.00, up nearly 5% since. KFY - challenged price resistance just above 22.00 and is failing thus far. Rising 20 day EMA has been holding. TIBX - triggered initial entry at 25.25 on Wednesday. Small Cap Watch List: SREV - trading in gap support zone, triggering initial entry at 11.26. SIGM - up 8% today, but came up just short of our 5.20 entry point on Wednesday. DELETIONS FROM OUR WATCH LISTS: None at this time. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com