EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: FNSR, KBR, LULU Friday: None MARKET NOTE: We've seen some selling the past 2-3 days, but nothing extraordinary. In fact, our momentum oscillators were very overbought and the bout of selling has helped to relieve them. I'm watching the rising 20 day EMAs as key short-term support. As long as they hold, I'll remain short-term bullish the overall market. We do need to be mindful, however, of the longer-term storm clouds and the impact they could have if short-term support is lost. In other words, make sure you take profits when given the opportunity and ALWAYS keep closing stops in place, even if they're just mental stops. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Hit both of our Entry Points, but never closed above our 109.75 Closing Stop. It has since had a couple of very rough trading days and is testing 20 day EMA support. Loss of this moving average would be technically significant and could lead to further selling. PRGO - Triggered our Second Short Entry at 143.00, providing us an average short entry of 141.50. Our Closing Stop is at 145.00 to keep any potential losses here quite small. Our Target Price remains 126.00 (recent low close). SBH - setting fresh new lows, but doing so on light volume and with a long-term positive divergence. I wouldn't be surprised to see a rally near-term here so I'd take profits on any short position with possible re-entry near the falling 50 day SMA. Large Cap Watch List: CNP - Testing trendline support today, just as it did on Wednesday. Still looks fine technically as we'll keep our Closing Stop at 23.35. FLEX - If in this one, consider raising your INTRADAY stop every day to just beneath the prior day's low. FLEX has been printing higher lows for the past two weeks or more. So on the first sign of weakness (lower low), I'd capture profits. HSP - Great performer, but the long tail to the upside on Wednesday suggested we could see a short-term top and action today is confirming it. The good news is that the long-term negative divergence has been eliminated and volume trends have been superb. So a rising 20 day EMA test could be considered for initial re-entry. Mid Cap Watch List: KFY - 30.50-31.00 is solid price support and the rising 20 day EMA is currently at 30.80. So this range should offer up nice support with buyers bidding shares at this level. WTW - March higher continuing as patience has paid off on this one. 23.71 is a key resistance level and at least partial profits could be taken if/when WTW hits this level. Ultimately, I expect it to break this resistance but being disciplined and taking some profits would be prudent in this market environment. 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