EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: None Thursday: FDO, INFY MARKET NOTE: Alcoa (AA) did not disappoint traders and is being rewarded for a better-than-expected Q2 earnings report. That's provided a bit of a lift to the overall market, which is bouncing nicely near 20 day EMA support on both the S&P 500 and NASDAQ. One short-term technical area of interest will be the falling 20 hour EMA on the 60 minute intraday chart. The bears will be looking for additional selling at that level, while the bulls will try to improve the short-term technical picture by breaking through. That could be a battle setting up this afternoon. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: PRGO - Continues to struggle after the recent long tail to the top above 153. The rising 20 day EMA is key support now below current price. LL - We didn't break down yesterday with the high wave candle, but we're certainly threatening to do so today. LL just can't seem to find support anywhere after its last earning-related blunder. Large Cap Watch List: CNP - Consolidating near 20 day EMA and price support. HSP - Volume trends remain strong, but wow that MACD is ugly as it points lower in a big way. While HSP has been a great performer on the long side, it really could use a significant period of selling to test price support closer to 49 while unwinding that daily MACD to centerline support. JWN - 70.21 closing resistance was cleared on an intraday basis earlier today, but it's since fallen back below it. Nothing wrong with capturing short-term profits here and re-entering on a 20 day EMA test. An alternative would be to wait later in the day to see if 70.21 is cleared on the close. Volume is moderate today so a strong close would be bullish. NVDA - Volume accelerating today as it fills gap resistance at 18.93. A close above would be bullish, especially with the increase in volume. Mid Cap Watch List: GRPN - Triggered our Second Entry at 6.40, then held above our Closing Stop of 6.20 on Tuesday's close. We're seeing some strength today and we'd like to see that continue. WTW - Having its best day in awhile, but volume remains light. I'd expect to see further consolidation. The 20 day EMA resides at 20.97 so a close back above that key moving average is Step 1 for the bulls. Small Cap Watch List: MTRX - Has been weak, but the hope here is that Tuesday's long tail to the downside and reversal marks the short-term bottom. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com