EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: AXL, CTB, CVS, CVX, EL, LNG, NWL, SWN, TDS Monday: AIG, APC, EOG, HL, OXY, PETS, PFE, PLOW, SGY, SYY, TSN, VECO, VNO MARKET NOTE: Today's nonfarm payrolls came in about as strong as the bulls could possibly have hoped. The interesting part, however, has been the reaction in both the stock and bond market. The 10 year treasury yield ($TNX) should have soared on this news, yet instead it's headed lower to approach key yield support near 2.58%. A close below could trigger much more buying of defensive treasuries, a bearish development for equities. The reaction in equities is quite subdued as well - a very strange reaction to a strong report. We are adding 10 stocks to our Watch Lists, all of which have reported earnings in the past couple days. Four will be added to our Short Watch List, three to Large Cap, two to Mid Cap and one to Small Cap. This is NOT an indication to become overly aggressive in the market at this time because I actually feel we should all be quite cautious. Rather, it's simply recognition of nice (or poor in the case of shorts) earnings reports, combined with corroborating technical reactions. ADDITIONS TO WATCH LISTS: There are 10 additions as follows: Short Watch List: LL SBH ARG FLR Large Cap Watch List: HSP FLEX CNP Mid Cap Watch List: WTW ALJ Small Cap Watch List: IRDM Annotated charts will be provided over the weekend identifying entry, exit and target strategies. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: No comments today. Large Cap Watch List: VIPS - Today's high touched 155.00. Time to book profits again. A close over 160.00 would be very bullish, while 130.00 continues to serve as strong closing price support. Re-entry closer to that level would make sense. Mid Cap Watch List: KFY - Rallying again off recent price support at 28.00. Consider 30.00-30.50 as the zone to take profits until further notice. Small Cap Watch List: PLOW - WE ARE REMOVING PLOW FROM OUR WATCH LIST AS THEY REPORT EARNINGS ON MONDAY. DELETIONS FROM OUR WATCH LISTS: PLOW IS BEING REMOVED FROM OUR SMALL CAP WATCH LIST AS THEY REPORT EARNINGS ON MONDAY. There are no other deletions today unless stop losses are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com