EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: APA, CBS, DAR, DF, DISH, ED, ICE, LINTA, MDRX, MELI, MNST, MTD, NVDA, PCLN, PCP, SI, SYMC, TM Friday: ALU, MT, PBR, RL, SSYS MARKET NOTE: The stock market AND bond market are both trading as if the Federal Reserve is planning additional quantitative easing. I know that sounds crazy, but the 10 year treasury yield is on the verge of breaking down below key 2.57% support at the same time that the Dow Jones has moved into what would be all-time record high closing territory. The S&P 500 is right on its heels. The perplexing parts, however, are that (1) railroads are performing well, suggesting that the economy is already on solid ground and (2) money is rotating towards safety and has been for months. If QE was truly on the table, aggressive stocks should benefit. When I see a market that is trading in a manner that makes little sense, I tend to be more conservative so just be careful please - on both the long and short side. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: FLR - Rising so our Second Entry at 78.00 could come into play soon. LL - Potential reversing candle here with that long-term positive divergence in play. I'd be out of any short position at this point with a quick long trade not at all crazy. A move back into the low 90s, especially if the overall market breaks out, wouldn't be a surprise at all to reset the daily MACD closer to centerline resistance. SBH - Relative weakness here is quite apparent. SJM - Hit our Second Entry of 100.00 for shorting. Keep a tight closing stop at 101.00 and honor it as a breakout would potentially begin a pattern of higher highs and higher lows off the mid-February low. Large Cap Watch List: CNP - Down today, but recent pattern of higher highs and higher lows intact. FLEX - Breaking out with nice volume. Close above 9.60 confirms the breakout with a Target Price of 10.50 in place. HSP - Strong finish on Wednesday. Now shows very strong MACD with pullbacks near rising 20 day EMA buyable. Mid Cap Watch List: KFY - Again bouncing off 28.00 support and our Entry Price. Currently at 29.00 and that could represent a quick profit for some. A close over 29.00 would likely lead to another push higher to the 30.00 level. WTW - Triggered our Second Entry on Wednesday at 22.00 and we bounced nicely off the rising 20 day EMA, an important development technically. Small Cap Watch List: IRDM - Failed to hold our Closing Stop of 6.60 on Wednesday and HAS BEEN REMOVED FROM OUR WATCH LIST. DELETIONS FROM OUR WATCH LISTS: IRDM WAS STOPPED OUT AND THEREFORE REMOVED FROM OUR WATCH LIST ON WEDNESDAY. There are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com