EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: MU Tuesday: CCL, MTL, WAG MARKET NOTE: Our major indices held up quite well through options expiration week last week, despite what appeared to be obvious reasons for the market makers to at least attempt to take prices lower. It never materialized, however, and traders were buoyed by a couple of economic reports this morning - better than expected PMI manufacturing and existing home sales - both reports for May. Still the bias as we start a new week is slightly bearish with rising 20 day EMAs the first significant level of technical support to watch for. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Approached our 109.75 Closing Stop last week, but never closed above it. FLR - This former Short Candidate looks much better technically as it's now in a bullish flag pole pattern. Eventually I'd expect this stock to see January highs near 83. PRGO - Constant bullish behavior of the market has helped PRGO in recent days/weeks, but we still would maintain our Closing Stop at 145.00. Large Cap Watch List: CNP - Friday's reversing candle on heavy volume could hold this one back temporarily as the rising 20 day EMA would be an obvious area to see buyers return. FDX - Latest addition to our Watch Lists. FDX is attempting to break to fresh new highs, which is bullish. HSP - The recent breakout and volume trends are bullish, while that long-term negative divergence is not. If you're in this one, I'd consider raising my closing stop to 52.00. Mid Cap Watch List: WTW - This one could really use a reversing candle today for a couple reasons. First, holding support at the 50 day SMA would be nice technically and encourage potential buyers to act. Also, from the low in late April, there's now a possible uptrend forming if you connect that low with the low in early June. We're testing that trendline currently so a bounce from this level would establish a third point on the trendline - a bullish development. 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