EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: AOL, AYR, BID, BUD, CF, CHK, CTRP, CTSH, DUK, DVN, GMCR, HUM, MDR, NLY, POM, PRU, RIG, SCTY, TSLA, UNM, Z Thursday: APA, CBS, DAR, DF, DISH, ED, ICE, LINTA, MDRX, MELI, MNST, MTD, NVDA, PCLN, PCP, SI, SYMC, TM MARKET NOTE: The market action today is bifurcated once again with the safer Dow Jones and S&P 500 performing much better on a relative basis, while the aggressive NASDAQ and Russell 2000 are sold off rather hard. The fact that traders continue to operate in "risk off" mode makes the likelihood of a continuing bull market much less. It could certainly still continue for weeks, months or even years, but as traders we should understand that the risks are elevated when we see "beneath the surface" action like we've been seeing. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Turning back down after testing its falling 20 day EMA. LL - Has been very weak, quickly hitting our Target Price of 83.50 just a couple days after being added to our Watch List. I continue to like the short side on this one on bounces. SJM - Testing its 6 week high on increasing volume. The closing line in the sand here remains the 100.00 level. Large Cap Watch List: FLEX - Tuesday's intraday high flirted with a breakout before failing into the close. As you might expect, we're struggling today after that failure with the rising 20 day EMA serving as short-term support. HSP - Having a very nice day today, on heavy volume. We only hit one entry price on this one and our Target Price is 49.50, where we'd consider taking profits if the rally continues. VIPS - Volatility remains extreme here, which is why I've discussed the trading range from 130.00 (buy) to 160.00 (sell). Two days ago, VIPS was at 160. Today's low is 134.70 with the last trade at 139.67. I like it as long as it continues to close above 125.00. But just be aware of the extreme volatility in both directions. Mid Cap Watch List: ALJ - Triggered our Second Entry at 16.00 as it tests its rising 20 day EMA. KFY - Fell beneath our Entry Point of 28.00 earlier in today's session, but has since rallied back above that level. Short-term traders could consider the 28.90-29.00 level for quick profit, while swing traders could look for 30.00-30.50. WTW - Losing weight today for sure. The good news is that it's triggered our Second Entry at 22.00 while testing its rising 20 day EMA. Small Cap Watch List: IRDM - There's a reason why we only have one Small Cap Watch List stock. The Russell 2000 remains under fire. IRDM is showing the effects as it's triggered all of our entry levels, including our Final Entry of 6.70. We have a tight closing stop of 6.60 that we'll honor. At last check, IRDM was trading at 6.58 so keep an eye on this one. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com