EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: CCL, MTL, WAG Wednesday: APOL, BBBY, GIS, MON MARKET NOTE: Economic reports showed strength in the economy, especially the surge in new home sales for May. Consumer confidence also jumped with the combination of these bullish reports and strong technical indications allowing traders to focus on bargains as market rotation continues. It's difficult to predict the end of ANY bull market, so I'd trade with the expectation that the market goes higher near-term. However, do keep in mind the intermarket warning signs that tell us a top could occur at any time. This simply means trade with a higher degree of caution, making sure you keep stops in place in the event the market turns. ADDITIONS TO WATCH LISTS: There are four additions (in order of market cap) to our Watch Lists as follows: JWN, $12.9 billion market cap with entry at the current price (68.00), the rising 50 day SMA (currently 64.87) and price support close to 63.50. NVDA, $10.5 billion market cap with entry at the current price (18.80) and again at 17.50. GRPN, $4.8 billion market cap with entry at the current price (6.98) and again at 6.40. MTRX, $914.7 million market cap with entry at the current price (34.61), 33.00 and 31.00. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Continues to flirt with our Closing Stop at 109.75, but remains just below it for now near 109.00. PRGO - Trading squarely on our Closing Stop of 145.00 so I'll be watching the closing level on this one later today. Large Cap Watch List: CNP - Stymied at 25.00 resistance recently and now consolidating its gains. FDX - Breaking out again, holding onto its very bullish technical outlook. Mid Cap Watch List: WTW - Reversal on Monday was huge technically. I'd like to see WTW rally from this point, holding onto trendline support. 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