EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: HAL, KMB, NFLX, STI, ZION Tuesday: AMGN, CMCSA, CREE, DFS, GILD, GPC, HOG, ILMN, ISRG, ITW, JNPR, LMT, MCD, NBR, RF, T, TRV, UTX, VMW, YUM MARKET NOTE: We're higher today, but most of the strength remains concentrated in defensive areas of the market, which is historically problematic. Earnings season really picks up this week and next and we'll see how the market reacts as companies like NFLX, AAPL and FB report. We will be looking to add several more stocks to our Watch Lists in the next week or two based on (1) individual earnings reports and (2) our assessment of the overall market conditions. It is quite possible you will see more stocks being added to our Short Watch List. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - 94.00-100.00 continues to be the trading range near-term. While SJM is not particularly healthy near-term, it's been aided by a consumer staples group that's in favor. Large Cap Watch List: FFIV - 110.00 is acting like key price resistance for now and continues to provide profit opportunities on recent near-term trades. TEL - Nearing key price resistance at 61.90. If in this one, consider taking profits as earnings will be out soon. WE ARE REMOVING TEL FROM OUR WATCH LIST. UA - Failure continues at the now-declining 20 day EMA. Current trading range is 50.50-54.50. Mid Cap Watch List: GMT - The light volume bounce, along with the long-term negative divergence, suggests it's time to REMOVE THIS ONE FROM OUR WATCH LIST. Earnings will be out fairly soon. KFY - Took profits late last week near price resistance at 30.55. We like re-entry at 29.00 and 27.50. Small Cap Watch List: PLOW - The seesaw continues and is going up today. 16.50-17.60 is your trading range. Consider buying at the bottom of the range and selling at the top until this pattern is broken. DELETIONS FROM OUR WATCH LISTS: TEL AND GMT ARE BEING REMOVED AS THEY'VE BEEN VERY STRONG AND WILL BE REPORTING EARNINGS FAIRLY SOON. There are no other deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com