EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: AIG, APC, EOG, HL, OXY, PETS, PFE, PLOW, SGY, SYY, TSN, VECO, VNO Tuesday: ALL, ATVI, BCS, CBOE, DIS, DISCA, DTV, EA, FEYE, FMC, FSLR, GDP, GRPN, LBTYA, MCHP, MOS, MRO, OKE, SLF, TRIP, UBS, VMC, WCG, WFM MARKET NOTE: Our major indices struggled at today's open, but have since bounced back and were positive at last check. Historically, the stock market was tend to struggle from the May 5th close to the May 25th close, so we'll see if that trend continues in 2014. A breakout on the S&P 500 to another all-time high above 1891 should be respected, although leadership today is once again in the form of utilities. It's hard to get excited on the bullish side when defensive groups attract money as our indices attempt to forge to new recent or all-time highs. On Friday, we released 10 new additions to our Watch List, building it up from almost zero. Despite the additions, our Watch Lists are mixed with 4 Short candidates to go along with 9 long candidates - 13 stocks are now on our Watch Lists in total. This is a far cry from the 50-60 stocks that we had on the Watch Lists as late as December 2013. Please understand we would remain quite cautious as the market decides whether the five year bull market will resume or if the recent struggles are a sign of weakening stock prices to come. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: LL - One of the weaker short candidates today as 20 day EMA resistance has so far proven to be too much for the bulls to handle. SBH - We'd like to see a bounce before shorting this one as it resides almost squarely on price support near 25.25. A break below this level on heavy volume could suggest a target as low as 19.00-20.00. Large Cap Watch List: CNP - Trying to regroup and recapture its 20 day EMA. HSP - Momentum and volume trends strong, not to mention this one resides in a defensive area of the market. Mid Cap Watch List: ALJ - Struggling near price resistance at 17.00, but the rising 20 day EMA should provide a nice entry for those wanting to wait for lower prices. Small Cap Watch List: IRDM - The only stock currently on our Small Cap Watch List. It gapped down early (7.30), then hit our Second Entry at 7.10 before rallying to 7.54 at last check. Solid action on big volume. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com