EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: HOV, PVH Thursday: CIEN, COO, DMND, JOY, NAV, VRA MARKET NOTE: Despite a weaker than expected ADP employment report number (179,000 vs. 210,000), equity prices have held up well. Perhaps more surprisingly, the bond market has sold off with yields moving and closing above 2.60%. That was the first time the 10 year treasury yield ($TNX) has closed above 2.60% in more than three weeks. I'm awaiting the nonfarm payrolls on Friday and both the bond and stock market's reaction to it. That may give us more information to trade off of. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: LL - Has been very weak, but we've steered clear lately because of the long-term positive divergence in play. A 50 day SMA test would be reason to re-enter a short position. TRMB - There is price resistance at 36.63 so initial short position could be taken here if not already in. The declining 20 day EMA would represent the next best short entry point. Large Cap Watch List: FLEX - Hit our Target Price of 10.50. GREAT TRADE!!! We are keeping FLEX on our Watch List and will consider re-entry on a 20 day EMA test. In the meantime, today's volume is very strong so another strategy could be to hold onto FLEX until it prints its first lower low on the daily chart. Mid Cap Watch List: ALJ - Bouncing off the 14.00 price support mentioned recently. Once again, this COULD mark the "D" bottom in an ABCDE ascending triangle pattern. WTW - Rallying today, but still struggling to clear its 20 day EMA on strength. That's the first step for the bulls. 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