EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ARO, BBY, BKE, BRCD, DLTR, GME, GPS, HPQ, MRVL, PLCE, ROST, RY, SHLD, TD Friday: FL MARKET NOTE: Today's strength in equity prices is supported by a strong biotech ($DJUSBT) industry group, not to mention strength seen in other areas like banks ($DJUSBK). That latter group, however, is once again testing its declining 20 day EMA, a resistance area that has held multiple times in recent weeks. Obviously, a close above the 20 day EMA would add more bullishness to this advance. Volume has picked up slightly today. The bulls would like to see this volume accelerate even more to support a move higher. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Struggling on a relative basis over the past week or more. FLR - Recently hit our Target Price of 73.50 and we're now awaiting a move higher to consider re-entering on the short side. Consider 75.00 and 77.00 as two possible short entry levels. SBH - Printed a long-term positive divergence on recent price lows. I'd be on the sidelines awaiting a bounce to 26.25 to consider re-entry on the short side. Large Cap Watch List: CNP - Bouncing very nicely after both our Entry Points triggered. FLEX - Breaking out on very strong volume today. Most recent test of the rising 20 day EMA seemed to be the final entry point for those looking to enter on a pullback. HSP - Has been very strong, but that daily MACD is rolling over and volume is subsiding. It wouldn't be a bad idea to take at least partial profits if you're in it. Mid Cap Watch List: ALJ - Has triggered all Entry Points and attempting to bounce off of uptrend line support in its ascending triangle pattern. KFY - Nice day today, challenging 30.00-30.50 price resistance. Will need more volume to confirm its next breakout on a close above 30.50. WTW - Triggered all Entry Points. Could use a big volume reversing candlestick to encourage more longs at this level. 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