EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: CMI, HLF, JEC, SOHU, TSN Tuesday: AET, AFL, AMGN, APC, AXP, BP, BWLD, CNX, COH, DB, ESRX, ITW, MAR, MRK, NEM, NOV, OSK, PFE, PNRA, SIRI, TWTR, UPS, X MARKET NOTE: The S&P 500's latest all-time high came with a price once again as a long-term negative divergence accompanied the breakout. In addition, the NASDAQ failed to break above 4486 last week after testing that level. Throw in the severe drop in home construction stocks ($DJUSHB) of late and the sudden struggle of semiconductors ($SOX) and railroads ($DJUSRR) - two strong groups in 2014 - and it's easy to see why many traders are nervous and the VIX is beginning to climb. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no stocks on our Short Watch List at this time. Large Cap Watch List: CNP - Closed slightly below its 20 day EMA, but held price support easily and is bouncing today. Continues to trade well. FDX - Negative divergence leading to further selling. The 50 day SMA and gap support at 145.35 are two solid entry points on FDX. HSP - Having a very strong day after recently resetting its daily MACD at centerline support. A strong finish today would be bullish, although I do expect higher prices here in time regardless of today's finish. NVDA - Triggered our Second Entry. I like the reward to risk on NVDA at the 17.50 level. Mid Cap Watch List: PAY - Moving below price support at 35.00, but note the volume is very light. A move down to 34.00 would represent our Second Entry point. WTW - Moving lower again after establishing what appeared to be a short-term uptrend last week. Disappointing, but we'll keep our Closing Stop at 19.00 and give this one a chance at recovery. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com