EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: BBT, CMG, GPC, HAL, HAS, NFLX, STI, TXN Tuesday: AAPL, AMX, BRCM, BTU, CMCSA, CS, DD, DFS, EA, HOG, ISRG, JNPR, KMB, KO, LMT, LXK, MCD, MJN, MO, MSFT, NBR, RF, STT, TRV, UTX, VMW, VZ, XLNX MARKET NOTE: Volatility is back on the rise and that's something to keep a close eye on. Rising volatility is almost always associated with a weakening stock market and on Thursday of last week, the VIX hit its highest intraday level since April 15th. The bulls will be watching to see if a lower low is printed on the VIX on the daily chart. Until that happens, the odds are that the stock market is heading lower. The Dow Jones US Bank Index ($DJUSBK) and the Dow Jones US Home Construction Index ($DJUSHB) show nice short- to intermediate-term support near 305 and 485, respectively. If those two support levels give way in those two influential industry groups, plenty of traders will take notice. Loss of the 20 day EMA on the NASDAQ last Thursday came with volume of 2 billion shares - above average. The rally since Thursday has seen lesser volume, which suggests this rally could be a head fake. The reaction to earnings reports the next couple days will offer up some clues regarding the short-term direction of equity prices. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: LL - Remains very weak, but also very oversold. Large Cap Watch List: CNP - Rallying once again off the short-term price support and 20 day EMA that was discussed recently. FDX - Performing well, but there is a long-term negative divergence in play. FLEX - Has consolidated to effectively reset the daily MACD. 10.75 is holding as price support. HSP - Bouncing after resetting its daily MACD back down at centerline support. JWN - Failed at 70.21 price resistance and now has pulled back to test support near 66.50-67.00. Current price represents a very nice entry point for those interested. NVDA - Down on big volume Friday after nearly touching price resistance at 19.72 on Wednesday. Still fine technically as NVDA appears to be consolidating in a bullish symmetrical triangle. Mid Cap Watch List: GRPN - Continues to consolidate near its 50 day SMA and price support. Our Closing Stop remains at 6.20. PAY - Volume returning on push back through 36.00 - bullish. WTW - Rallying just before triggering our Closing Stop at 19.00. A close back above the 20 day EMA is Step One. 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