EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ANF, COST, GES Friday: ANN, BIG MARKET NOTE: The 10 year treasury yield ($TNX) has fallen further and now appears to be heading for 2.25% or possibly even lower. Falling yields generally precede falling equity prices so unless the attitude in the treasury market changes SOON, the behavior here argues for potentially much lower S&P 500 prices over the summer and/or into the fall. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: FLR - Turning back down slightly today after approaching its 50 day SMA from underneath on Wednesday. Large Cap Watch List: CNP - Not doing much, but has held onto price and trendline support these past couple weeks. FLEX - One of the better looking stocks technically. The daily MACD shows very solid momentum, but a pullback to test price support closer to 9.65 would be best entry now. Mid Cap Watch List: KFY - Failure to hold 30.55 breakout on a closing basis would likely lead to a rising 20 day EMA test. Overall, however, the technicals here are strong and I expect higher prices in time. WTW - Back near recent price support, but on very light volume. 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