EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: KFY Tuesday: ADBE, BOBE, FDS, LZB MARKET NOTE: The market is continuing the weakness it saw the second half of last week, although the selling isn't too deep. It seems as though it's mostly just normal profit taking. This is options expiration week and max pain does suggest we could see more selling either later this week or possibly into early next week. Historically, this isn't a particularly bullish time either so please be careful. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Threatening to break back beneath all key levels of moving average support, but volume is light. FLR - Actually turned more bullish techically on the trendline breakout a couple weeks ago. Selling over the past several sessions, however, has now set this one up as a possible long entry on the rising 20 day EMA. If you decide to go that route, consider keeping a tight closing stop beneath that 20 day EMA. PRGO - 140.00 and 143.00 short entries both triggered and now PRGO is slowly moving lower. A close back below 140.00 is what we want to see from a short perspective while an increasing volume breakout above 143.00 would be reason to consider covering. Large Cap Watch List: CNP - Having a big day today with its sights on resistance close to 25.00. FLEX - Finally printed a lower low. Might be time to lock in profits if you're still holding. The rising 20 day EMA would be the initial area to consider re-entry. HSP - Mentioned a possible near-term top a few days back with that long tail left to the upside and selling is what we've seen since. This remains a very strong stock technically so I'd expect to see buyers at the rising 20 day EMA. Mid Cap Watch List: WTW - Despite slightly lower prices the past two days, this one appears to be regaining strength. The 20 day EMA is once again beginning to pull away from the 50 day SMA. I would look for a short-term move higher to 23.71 to test the high close from early May. 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