EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: FDO, INFY Friday: FAST, WFC MARKET NOTE: Weakness in Europe and a warning in home improvement company Lumber Liquidators (LL) had the bulls on the defensive at the opening bell as futures were down sharply. We've since seen improvement, but technically it would be nice to see each of our major indices clear 20 hour EMA resistance on the 60 minute chart. That will be JOB ONE to repair the short-term technical damage that's been inflicted this week. ADDITIONS TO WATCH LISTS: We are adding VeriFone Systems (PAY) to our Mid Cap Watch List. Pay is a $3.95 billion market cap company. We like initial entry at the current price (35.40) and a second entry at 34.00. We'll provide an annotated chart later this evening with more details. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: PRGO - Down approximately 10 bucks in last 3 trading sessions. If the rising 20 day EMA fails to hold as support, look to 143 price support next. LL - Think the news about the earnings warning broke early? Volume has incredibly high on yesterday's breakdown, then the warning hit. LL is getting absolutely hammered today. Large Cap Watch List: CNP - Bouncing right where it needs to technically. FDX - Recent weakness pushing FDX down close to its rising 20 day EMA, not a bad initial entry if you missed getting in earlier. HSP - 50.75 has been solid price support in recent weeks. Given the nasty long-term negative divergence, loss of that price support could turn everything in the bears' favor in the near-term. I like the stock longer-term, but short-term it's dicey at best. JWN - Failed to close above 70.21 resistance after having done so on an intraday basis. Today's weakness was to be expected. 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: WTW - Yesterday's gains quickly erased, which underscores the importance of volume accompanying moves like that to the upside. Lots of manipulation taking place here with light volume. Small Cap Watch List: MTRX - The Russell 2000 small cap index lagging as badly as it's been isn't helping MTRX at all. Neither are its technicals as our Closing Stop has been violated at the 30.50 level - at least on an intraday basis. We'll remove it if it fails to recover later today. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com