EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: CIEN, COO, DMND, JOY, NAV, VRA Friday: JOSB MARKET NOTE: The European Central Bank (ECB) lowered three key interest rates and equities received a boost from Fund Manager David Tepper, who said on CNBC that the ECB's actions help to alleviate his prior concerns about equities. The NASDAQ has cleared potential right shoulder resistance at 4250, arguing for a more bullish resolution to its sideways consolidation over the past several months. The S&P 500, in the meantime, has moved into overbought territory with respect to its RSI for the first time in 2014. The more aggressive Russell 2000 is leading the charge today, a bullish development indeed, and something that has been sorely lacking during the recent advance in S&P 500 prices. There is one potential fly in the ointment, however. May's nonfarm payrolls will be released at 8:30am EST and that report always creates the possibility of a significant move in one direction or the other. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Second Short Entry is at 109.00 and ARG is only about 1% away. Volume has been light on the latest bounce. FLR - Volume has accelerated as the upper downtrend line has been cleared. You should consider covering with a small loss. Today's breakout on higher volume is arguing for higher prices near-term. PRGO - Triggered our Initial Short Entry at 140.00 earlier today. TRMB - Triggered Second Short Entry at 37.25. We will maintain our Closing Stop at 38.50. Large Cap Watch List: HSP - High volume breakout trumps the long-term negative divergence in play. A reversing candle should be respected, but until then HSP looks for higher prices. Mid Cap Watch List: ALJ - Bouncing off 14.00 price support, re-establishing trendline support in its ascending triangle pattern. KFY - Increasing volume supports today's breakout as KFY now appears headed for 33.50. WTW - Threatening breakout above its key moving averages in the 21.20-21.25 area. Could use more volume to confirm this move, though. 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