EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: BMO, CHS, DSW, KORS, TOL Thursday: ANF, COST, GES MARKET NOTE: The short-term action is mostly bullish, despite the profit taking that's been seen in early action today. There is one BIG problem, however, and it's the falling 10 year treasury yield ($TNX). The TNX has fallen below critical support at 2.48%. At last check it was at 2.44%. Barring a late day recovery, this is VERY significant technically. It will be interesting to see how the stock market reacts if the yield closes in breakdown territory later today. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - A move below 104.00 would likely encourage more technical selling. Until then, we're in a 104.00-107.00 trading range. FLR - Today's high was approaching the 50 day SMA and trendline resistance just above 76.00. An initial short position could be considered in this area. Large Cap Watch List: HSP - Threatening another closing breakout, but the lack of volume and an ugly negative divergence would keep me on the sidelines here. I like the stock, but need lower prices to consider re-entry. Mid Cap Watch List: ALJ - This one is tricky. I like the pattern, but it's drifting lower on light volume so if you own it, you'll need to determine how much room you're willing to give it. I believe it's trying to find its "D" bottom in a bullish ACBDE ascending triangle pattern. Perhaps that bottom will be found near recent price lows at 14.00. KFY - 30.55 is closing breakout. It failed on Tuesday to close above that level and volume was weak. It's again trading above 30.55 intraday, but could use more volume and a strong finish to confirm a breakout. WTW - selling off but on very light volume. Recent lows should hold as support. 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