EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: A, CSCO, DE, M, NTES, SNE, VIPS Thursday: ADP, ADSK, AMAT, ATK, JCP, JWN, PBH, SI, WMT MARKET NOTE: The biggest news of the day thus far is the breakdown on the 10 year treasury yield ($TNX) beneath significant support at 2.57%. A close beneath represents a breakout to the upside in treasuries and that - generally speaking - is bearish for equities. Yet, on the positive side, I see that expected volatility (both VIX and VXN) is down despite weakening equity prices. Mixed signals for sure. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: FLR - Again has failed at trendline resistance. LL - Positive divergence remains in play as it falls back near 81.50 price support. If in on the short side, I like taking profits here. SBH - Came up just a couple pennies shy of testing its falling 20 day EMA. It hasn't triggered our Initial Short Entry of 26.30, but the 20 day EMA wouldn't be a bad entry point either. Large Cap Watch List: CNP - Triggered both entry points recently, then rallied to hold its Closing Stop on Wednesday's close. Nice rally today. FLEX - Continues to threaten a breakout above 9.60. More volume would help. HSP - Very strong stock technically. Any upcoming 20 day EMA test would represent a nice entry point. Mid Cap Watch List: No new comments 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