EB Watch List Update Report

Dear Members, IMPORTANT NOTE: I will be traveling to Seattle all day tomorrow and then will be speaking at ChartCon 2014. There will be no EB Update on Wednesday as a result, but we should be able to send out an update on Thursday. We'll keep you posted. MARKET NOTE: Breakdowns last week were numerous and many charts, including most of our major indices, are now on a sell signal on any strength. In order to change my way of thinking, I'd like to see our major indices climb back above 20 day EMA resistance. The NASDAQ has been the strongest of these indices on a relative basis, but 4350 is solid closing support. Loss of that level would likely trigger another round of selling. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. We're holding off on any further additions at this point because of the breakdowns last week. I believe this will set us up with nice opportunities, if we're patient. 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 - Lost recent support near 24.65, but mid-June gap support is holding for now. FDX - 145.50-147.50 continues to be nice support for long entry. JWN - Bullish consolidation takes shape. NVDA - Stubbornly holding onto 17.50 price support. It's big so it needs to hold. Mid Cap Watch List: PAY - Stopped out on Friday's close beneath 33.50. I continue to like the stock, but I don't want to make excuses for my stocks given the overall warning signs of the market and the ensuing breakdowns last week. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: PAY was deleted on Friday after it closed beneath our closing stop. There are no other deletions unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com