EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: ECA, FOSL, NTT, TTWO Wednesday: A, CSCO, DE, M, NTES, SNE, VIPS MARKET NOTE: We've seen consecutive all-time closing highs on the Dow Jones and yesterday the S&P 500 followed suit. This all seems quite bullish on the surface. But take a look at the volume on the advance - two of the lowest volume days in the past year on the Dow Jones. Given all the other remaining warning signs in terms of relative strength, I'd remain very skeptical of this rally, taking profits on the long candidates below when given the opportunity. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: FLR - Came within pennies of triggering our Second Entry on the short side at 78.00. FLR did once again hit trendline resistance so keep that Closing Stop in place at 79.00. SBH - Been waiting for a bounce here to short. We've seen a bounce, but it didn't quite reach our Initial Entry at 26.30. SJM - Closed above our 100.00 Closing Stop on Monday and HAS BEEN REMOVED FROM OUR WATCH LIST. Large Cap Watch List: CNP - Has triggered our Second Entry at 23.75 with a tight Closing Stop of 23.35. FLEX - Again attempted a breakout earlier today, but needs more volume. HSP - Strength continues. VIPS - REMOVING THIS ONE FROM OUR WATCH LIST AS IT REPORTS EARNINGS ON WEDNESDAY. Mid Cap Watch List: KFY - Failing again in the 30.00-30.50 range so consider taking profits here if you own. I still like it to eventually break out and move higher, but another trip to support certainly can't be ruled out. WTW - Continues to find support at its now-rising 20 day EMA. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: SJM WAS REMOVED FROM OUR WATCH LIST FOR VIOLATING OUR CLOSING STOP. VIPS IS BEING REMOVED FROM OUR WATCH LIST AS IT REPORTS EARNINGS ON WEDNESDAY. There are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com