EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: AMBA, DG Wednesday: HOV, PVH MARKET NOTE: Our major indices are struggling today, despite a resurgence in Apple (AAPL) shares. Semiconductors ($SOX) are performing well, but have developed a long-term negative divergence on their weekly chart so momentum could begin to play a role as we move deeper into the summer months. Money has rotated away from treasuries over the past few trading sessions, but this may be nothing more than a technical bounce in yields as traders take short-term profits in the treasury rally. Friday's jobs report and the reaction in bonds will tell us a bit more. On the meantime, please be cautious. ADDITIONS TO WATCH LISTS: We are adding two short candidates today as follows: TRMB, a $9.4 billion market cap company. We like short entry at $6.15 and 37.25 with a closing stop above 38.50. Look for a target of 31.00. PRGO, an $18.4 billion market cap company. We like short entry at 140.00 and 143.00 with a closing stop above 145.00. Look for a target of 126.00. Annotated charts will be added later this evening. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: FLR - Turning lower after approaching the upper downtrend resistance level. SBH - Falling back to near recent closing price support just beneath 25.00. Large Cap Watch List: FLEX - Hit an intraday high of 10.39, not far from our 10.50 Target Price. Consider taking profits at or near this level. HSP - Volume trends are still ok and not a problem at all. The daily MACD is a different story, however, and suggests the buying momentum is slowing. Mid Cap Watch List: ALJ - Likely time to redraw the lower uptrend line in the current ascending triangle pattern. Recent low close of 14.00 will be key. That's a level I'd like to see hold. KFY - Consolidating before a likely move higher. The jobs report on Friday could have a direct impact on KFY, though, so be mindful of that. 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