EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: JOSB Monday: None MARKET NOTE: The stock market is seeing a bit of a relief rally as May nonfarm payrolls came in just a tad above expectations - 217,000 actual vs. 213,000 estimate, while the unemployment rate was 6.3%, slightly better than the 6.4% widely forecast. While the activity in treasuries continues to make me nervous about the intermediate-term performance of stocks, the short-term action should be viewed as bullish for now, barring a late day reversal. The rising 20 hour EMAs should be viewed as short-term support on the 60 minute charts in the very near-term. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Has triggered second short entry at 109.00 and is currently trading near 109.75, our closing stop. Volume is moderate at best. A reversal and close back near 109.00 or below would be short-term bearish, but we should respect a close above 109.75 - especially if volume accelerates this afternoon. For those wanting to provide more room, the top of gap resistance at 110.68 is the next level of resistance beyond 109.47 (bottom of gap resistance). FLR - Discussed yesterday the fact that FLR's break above trendline resistance was likely to trigger more technical buying and that's exactly what we've seen. I would expect another trip to 83.00 in time on this one with rising 20 day EMA acting as support along the way. PRGO - Again failing to negotiate its first key level of resistance at 140.00. TRMB - Testing top of gap resistance with little volume. I'd expect to see a reversal here. We'll soon find out. Our closing stop would be at 38.50. Large Cap Watch List: CNP - Trading at a 3-4 week high. FLEX - Powerful rally continues. To reiterate what was said previously, if you're still holding this one, you could consider placing an INTRADAY stop beneath the prior day's low. That would enable you to exit FLEX with a profit after it prints its first lower low on the daily chart. Something to think about from a disciplined perspective. HSP - Accumulation continues. Mid Cap Watch List: KFY - Gaining traction with a strong daily MACD in play. 33.50 seems a reasonable target. WTW - Finally closed above both its key moving averages on Thursday and today we're seeing a bit more technical buying. 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