EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: ALU, MT, PBR, RL, SSYS Monday: MBI, MCK, RAX MARKET NOTE: The bifurcated action over the past 1-2 months is unlike anything I've seen. Yesterday, the Dow Jones was in all-time record high territory. Today, it's just beneath that all-time record high level. Meanwhile, the Russell 2000 is down more than 10% from its recent all-time high, threatening a major breakdown beneath 1090. It's clear that traders are avoiding the higher risk stocks and that doesn't bode well for equities. Remain cautious. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Declining slightly since testing its falling 20 day EMA early on Thursday. Large Cap Watch List: CNP - Weakening near-term with 50 day SMA and trendline support next key areas for the bulls. FLEX - Had the breakout in hand on Thursday, but failed on the close. Therefore, today's drop back to the 20 day EMA shouldn't be considered a surprise. VIPS - Earlier this week hit 160.00 resistance, now back near 130.00 support. This one's been incredibly volatile, but very profitable as a trading vehicle for those willing to take on high risk. Mid Cap Watch List: KFY - For those taking small profits at 29.00 yesterday, the 28.00 entry triggered again today. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com