EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: None Friday: None Monday: None MARKET NOTE: The U.S. stock market closes at 1pm EST today in honor of the July 4th holiday. A solid jobs report for June has sent our major indices higher yet again. It's very hard to argue with the short-term action so we won't. One sign to look for a possible near-term top would be a gap higher, followed by selling throughout the day and on strong volume. That could result in a bearish engulfing candle or a dark cloud cover. Until we see something like that, the long side of the trade continues to be the right side. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: This steady march higher really has made it difficult to profit from any stocks on the short side as our Watch List proves. LL - Long-term positive divergence likely to provide bulls with so ammo sooner rather than later. SBH - Breaking above its 50 day SMA after recently printing long-term positive divergence. Like FLR recently, SBH is actually beginning to look more like a long candidate with its now-rising 20 day EMA acting as support on weakness. Large Cap Watch List: CNP - As expected, bounced off 20 day EMA support earlier. FDX - No change here, steady advance. FLEX - 11.35 is closing resistance. Taking profits as it nears this level is prudent. Bulls are awaiting the next breakout. But given the potential negative divergence in play, you'll want to see a high volume breakout to trade it. JWN - Another day of nice action as it moves toward its short-term price resistance at 70.21. Closing above that level would be bullish. NVDA - Pushing through moving average resistance. A close at its current level (18.90) or higher would be bullish. Mid Cap Watch List: GRPN - Up slightly as its rising 20 day EMA continues to offer support. WTW - Sideways consolidating off recent downtrend. REALLY needs to hold onto major price support just above 19.50 on further weakness. Small Cap Watch List: MTRX - Finally printing a higher high and higher low, which could be signal of resumption of prior uptrend. Could use more volume to support this theory though. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com