EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: C Tuesday: ADTN, CSX, GS, INTC, JBHT, JNJ, JPM, YHOO MARKET NOTE: Equities are off to a nice start this week as Citigroup (C) produced better than expected results and traders were in a good mood in Europe. We've cleared 20 hour EMAs across each of our major indices and that's given the bulls the technical advantage in the near-term. The problem, however, is that we still have momentum issues, as evidenced by the long-term negative divergences on the MACD and RSI on both the Dow Jones and S&P 500. It'll be interesting to see how the stock market reacts as a plethora of high-profile companies report their latest quarterly results on Tuesday. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: PRGO - The series of lower lows ended today and did so on massive volume. There are rumors circulating on PRGO concerning a possible FDA announcement and a TON of calls have been bought. Volatility has been astounding today. We'd cover any short position given the uncertainty and increased volatility. We are REMOVING PRGO FROM OUR SHORT WATCH LIST. Large Cap Watch List: FDX - Bounced off 20 day EMA support as expected. FLEX - Trending sideways as it unwinds its stretched daily MACD. Note that volume has been low and its RSI is approaching the 40s. HSP - Similar to FLEX, just consolidating in sideways fashion with 50.75 holding as key short-term support in recent days. JWN - Holding onto support at its rising 20 day EMA. Retail sales are due out tomorrow. Good news here could be the reason for a breakout. We'll see. Mid Cap Watch List: GRPN - Stubbornly refusing to move much in either direction. Daily MACD still looks solid. PAY - Fractional gain is fine as it consolidates technically just above key support near 35.00. WTW - Volume is accelerating as it possibly continues its downtrend. Needs a reversal today. Our Closing Stop is 19.00, but any close beneath 19.63 with today's surge in volume would be bearish. At last check, WTW was at 19.35. If it's bottoming, it has work to do this afternoon. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: PRGO is being removed, but there are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com