Dear Members, KEY EARNINGS REPORTS: Wednesday: ABT, ADTN, AXP, BAC, COF, CS, GOOG, IBM, KMI, SNDK, STLD Thursday: AMD, ATHN, BBT, BHI, BX, CMG, DD, GE, GS, HON, MAT, MS, PEP, PM, SAP, SLB, UNH MARKET NOTE: Mentioned yesterday that a reversal into options expiration Friday couldn't be ruled out and that's exactly what we saw. Action today has continued to be mostly bullish ON THE SURFACE. Underneath, however, this action isn't great so I don't expect the short-term bullishness to last. I'd consider that when evaluating your individual stock trades. With earnings season kicking in, please check the earnings dates for all stocks you own or are considering trading. If you decide to own a stock into its earnings report, at least make it a conscious decision to do so. Don't be surprised. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - Rallying a bit today, but the overall downtrend remains in play. Large Cap Watch List: CAT - Relative strength here continues as CAT moves to yet another fresh high. FFIV - I like the stock, but not the market. So this current test of 50 day SMA would be an opportunity to move back to the sidelines. We're taking profits and REMOVING FFIV FROM OUR WATCH LIST. TEL - Reversing higher and, as mentioned yesterday, it's really not far from yet another breakout. Great relative performer here. UA - Reversal and push higher today has this one back above water for us. We're keeping it on the Watch List for now, but taking small profits not a bad option in the current market environment. The 20 day EMA serves as short-term resistance until we can clear it on a closing basis. VIPS - Nice reversal on Tuesday and was up nearly 7 bucks earlier today. High volatility here means capture profits when given the opportunity. Mid Cap Watch List: GMT - In addition to negative divergences, slowing momentum can also be seen in lack of volume. Today's volume is pathetic. I like the stock, but near-term I'd be out. KFY - Volume trends remain strong and we're bouncing as expected after nearly testing gap support. The 29.50-30.50 area represents a good level to take profits. Small Cap Watch List: PLOW - Overall volume trends here are strong, but light volume days set this one up for extreme volatility, which is what we're currently witnessing. I expect it to move higher, but the risk here is great because of lower liquidity. DELETIONS FROM OUR WATCH LISTS: FFIV being removed as profits being taken. There are no other deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com