EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: AA, BOBE Wednesday: None MARKET NOTE: The additional selling that I discussed yesterday has occurred. The problem is that the short-term support levels discussed have shown little or no buying interest and that now opens the door to further technical selling. 50 day SMAs are likely to be next unless we see an afternoon reversal to reclaim the support levels discussed on Monday. Alcoa (AA) will report its Q2 results after the bell tonight as AA is widely viewed as the company that kicks off earnings season. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: PRGO - Monday's reversing candle has led to significant selling on PRGO. The rising 20 day EMA will become the first obstacle for the bears to take this one lower. LL - Volume has increased significantly today with a high wave candle forming. This is a candle showing indecision, which could be a very good sign for the bulls so long as we don't break down later today. Large Cap Watch List: CNP - Bouncing today, rising off 20 day EMA support. FDX - More profit taking today, but note the lack of volume. Remains bullish, but perhaps could use a bit more unwinding in the near-term. JWN - On a relative basis, continues to trade quite well, inching closer to 70.21 closing price resistance. NVDA - Latest attempt to move higher just failed at its 20 day EMA. I would not be surprised to see this one trigger its Second Entry point at 17.50 in time. I like the stock, but the industry group is seeing rotation away right now. Mid Cap Watch List: GRPN - Gapped higher today, but interestingly enough opened just two pennies beneath candle body resistance at 6.79. That left sellers at the open and they took full advantage especially given the overall market weakness. GRPN triggered our Second Entry at 6.40 and needs to remain above our Closing Stop of 6.20 or we'll remove it. WTW - Flat on light volume. Holding longer-term support thus far, but the short-term strength we saw in the first half of June completely fell apart and now we're simply sideways consolidating. Small Cap Watch List: MTRX - We closed on Monday just beneath 31.26 support and we're seeing more intraday weakness today. Today's close will be significant technically. We have our Closing Stop at 30.50. A close back above 31.26 would be VERY bullish. A close at or below the current price would be bearish and likely lead to the bottom of gap support being tested at 28.35. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com