EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: ADBE, BOBE, FDS, LZB Wednesday: ATU, FDX, JBL MARKET NOTE: Traders are now awaiting the FOMC announcement due out on Wednesday at 2pm EST. They are, however, still keeping one foot on the gas pedal as the more aggressive Russell 2000 and NASDAQ attempt to clear recent price highs. We've seen leadership over the past few months from the more conservative S&P 500 and Dow Jones, so this renewed strength in aggressive areas could bode well for prices in the near-term. We do want to see breakouts confirm that line of thinking, then continue to hold rising 20 day EMA support during any bouts of profit taking. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: FLR - Bouncing off 20 day EMA support as mentioned yesterday. FLR looks much more like a long candidate after the recent high volume breakout above trendline resistance. LL - Will the long-term positive divergence ever kick in? A test of the 50 day SMA is what I'd look for to consider shorting. SBH - Another one with a long-term positive divergence that could use a 50 day SMA test to reset its daily MACD. I'd continue utilizing patience on this one, shorting only after a decent rally. Large Cap Watch List: CNP - Seeing some profit taking after Monday's nice advance. FLEX - Printing another lower low after weeks of solid gains. The rising 20 day EMA should provide nice entry. Mid Cap Watch List: WTW - Up a little more than 1% today, but on very light volume. The march towards 23.71 price resistance continues. 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