EB Watch List Update Report

Dear Members, Note: I will not be available most of the day today. Thus, today's Update is being sent out at the market open. Please enjoy your weekend! :-) KEY EARNINGS REPORTS: Friday: DRI Monday: None MARKET NOTE: Futures this morning are pointing to a lethargic opening after yesterday afternoon's sizable rally. While we remain in a trading range across our major indices, we did finally see a breakout on the Dow Jones US Bank Index ($DJUSBK) as it closed above 315 for the first time since early April. I'll be watching to see if the stock market can use this momentum from the influential financial sector to sustain the 5 1/2 year bull market. We have plenty of risks heading into the second half of September (historically the weakest half of September), but the significance of getting the banks on board this rally cannot be overstated. ADDITIONS TO WATCH LISTS: We are adding three stocks to our Watch Lists (annotations provided over the weekend), as follows: Large Cap: PLL - $8.98 billion market cap, entry can be considered at the rising 20 day EMA and also at price support at 81.92. Mid Cap: AMBA - $1.11 billion market cap, quite volatile stock so only aggressive traders should consider, entry can be considered first at the rising 20 day EMA, currently at 34.48 Small Cap: NX - 678.04 million market cap, another aggressive stock, entry can be considered at the 20 day EMA, currently at 18.09. NX closed on Thursday at 18.18 after gapping up to 19.35 on Tuesday's open. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: FDX - 154.18 remains the key resistance and is the level to consider taking profits near-term. HSP - Nice initial entry opportunity remains at the 53.00 level. Mid Cap Watch List: JACK - Extended its Wednesday breakout by trading higher once again on Thursday. Volume was strong. 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