EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: QIHU Tuesday: ADI, BBY, BMO, BNS, DSW MARKET NOTE: All of our major indices are higher, but the Dow Jones is struggling at 17138 resistance (all-time closing high), while the S&P 500 battles psychological resistance at 2000. Throw in short-term resistance on the Russell 2000 at 1170 and we have the makings of perhaps a stalemate. One other item of technical note: There are negative divergences on the 60 minute charts on each of the major indices. Homebuilders ($DJUSHB) and semiconductors ($SOX) are potentially printing bearish engulfing candles today, further evidence of a potential short-term reversal. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: MTW - Moving slightly above its 20 day EMA, although volume remains extremely light. Our closing stop is at 29.00. PVA - Remains in a downtrend, but did close above our Closing Stop of 14.00 so it's been removed. If you decide to continue trading it, gap resistance at 14.66 and the falling 50 day SMA at 14.68 combine to form a very significant resistance area. Large Cap Watch List: FDX - Continues to successfully test its 20 day EMA and remains bullish. Mid Cap Watch List: There are no Mid Cap Watch List stocks at this time. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: PVA has been removed from our Short Watch List because it closed above the closing stop. There are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com