EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: CPB, URBN Tuesday: ADI, CRM, DCI, DKS, HD, INTU, MDT, SPLS, TDW, TJX, VOD MARKET NOTE: We're beginning to see a bit of relative strength in the NASDAQ that started last week. That's a positive sign. However, the yield on the 10 year treasury ($TNX) remains precariously close to a major intermediate-term breakdown beneath 2.48% and that breakdown, if it occurs, would not be a good sign for equities in the weeks and months ahead. I'm just taking it one day at a time here. I'm not giving up on the five year bull market, but I'm certainly not ignoring the various warning signs either. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Trading mostly in a very narrow 105-107 range for now. FLR - Gapped beneath 73.50 support at today's open, but has since recovered and trading above that level. A weak finish today would be bearish. However, a reversing candle at support could provide us another short re-entry from 75 to 77, depending upon how much risk you're willing to take. LL - Struggling but still maintaining a long-term positive divergence. SBH - Triggered Initial Short Entry at 26.30 on Friday and has been weak thus far today. Large Cap Watch List: CNP - Has been down recently on mostly light volume. We'll still honor our 23.35 Closing Stop, however. FLEX - Rallying off 20 day EMA support, as expected, and now challenging breakout near 9.60 again. Needs more volume to confirm. Mid Cap Watch List: ALJ - Barely held onto our Closing Stop at 14.50 on Friday. Now reversing nicely back over 15.00. Ascending triangle remains in play. KFY - Yet another reversal here and quickly back over 30.00. The consolidation over the past several weeks has allowed the daily MACD to settle back closer to centerline support and KFY is poised to break out above 30.50, especially if the overall market cooperates. WTW - Drifts lower on fairly light volume. I'm still expecting a swift recovery and the current level would make sense. We'll see. 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