EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: ANN, BIG Monday: CONN, KKD MARKET NOTE: We're seeing a bounce in the 10 year treasury yield ($TNX), but the same theme keeps playing out - defensive areas of the market are attracting the majority of the dollars. Until that changes, it's going to be hard to consider being aggressively long U.S. equities. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Had a big day yesterday, but all of the action was contained within its 104.00-107.00 trading range. LL - Breaking down again as volume begins to pick up. The distribution here remains obvious. SBH - Testing its declining 20 day EMA, normally a good spot for short entry. However, there is a long-term positive divergence in play so we could see strength continue to its 50 day SMA to reset the daily MACD. Large Cap Watch List: CNP - Breaking to 3 week highs with its daily MACD printing a bullish centerline crossover of its MACD. Looking stronger technically after holding key support identified near 23.35. HSP - Performing well, but the big question is whether that long-term negative divergence kicks in. Mid Cap Watch List: ALJ - Rallying again, but volume is quite light as it approaches its 20 day EMA. A close above that moving average on increasing volume would be good news for bulls. KFY - The rising 20 day EMA will likely provide solid 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