EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ADS, AMD, ATHN, BAX, BHI, BX, CE, COF, DHR, FITB, GOOG, IBM, MS, PM, SAP, SLB, STX, UNH Friday: BK, ERIC, GE, HBAN, HON, JCI Monday: BBT, CMG, GPC, HAL, HAS, NFLX, STI, TXN MARKET NOTE: The action today is quite bearish as the 10 year treasury yield ($TNX) falls beneath recent key levels of support near 2.50%. This is evidence of a flight to safety as higher treasury prices drive corresponding yields lower. That flight to safety is further supported by relative strength in healthcare, consumer staples and utilities today. Furthermore, the Russell 2000 (small caps) have been underperforming by a very wide margin during July and that trend continues today. Historically, we're entering a period (July 17 - September 27) that generally produces the worst equity performance of the calendar year. Please be careful. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: No significant changes today. Large Cap Watch List: CNP - Holding up quite well technically, especially given the weakness in the overall market and in energy more specifically. FDX - Broke out on Wednesday to a fresh closing high, but has failed to hold that breakout level today. The daily MACD shows a negative divergence, which could be problematic in the near-term. HSP - Finally has reset its daily MACD at centerline support as price tests its rising 50 day SMA. Initial re-entry at this level could be considered. Mid Cap Watch List: GRPN - Trading at the low end of its recent 6.28-6.79 range. Our Closing Stop remains at 6.20. PAY - Traded at an 8 session high earlier today, but the overall selling pressure in market took its toll here. WTW - Tested 19.63 resistance exactly to the penny, but has fallen back a bit. Needs more volume on the upside move. A close below 19.00 represents our Closing Stop. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com