EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: None Tuesday: YUM MARKET NOTE: We are witnessing a trendless market. Nothing sticks. We really couldn't have hoped for a much better nonfarm payrolls report on Friday. That coupled with historically low 10 year treasury yields ($TNX) should have traders very excited for equities. Yet, the long-term weekly charts show that volume has been evaporating the past couple years and that few truly believe in this rally. The behavior in home construction stocks ($DJUSHB) is arguing for higher mortgage rates to slow growth in this area. That might be why we continue to see money shifting from growth to income. The REITs are among the best performing industry groups today, underscoring this transition to safety. ADDITIONS TO WATCH LISTS: There are no additions today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: BIDU - Performing well on a relative basis today, trying to clear its two key moving averages - the 20 day EMA and 50 day SMA. NTAP - Its daily MACD is closing in on centerline support, significant because of the recent long-term negative divergence. Once the slowing momentum is no longer an issue, I'd expect to see resumption in the rally here. PLL - Closing above 84.00 would be significant technically as PLL continues to demonstrate solid relative performance. CRM - In an uptrend off the recent open beneath 56.00 support. Looks bullish to me. SPR - Seeing a MACD centerline test, similar to the one at the end of July. I'd look for strength sooner rather than later. Mid Cap Watch List: DSW - Handing back Friday's nice gains, but remaining in a technically enviable position above its key moving averages. JACK - Accumulation continues. SNCR - Watch for the combination of strong volume and reversing candle given the long-term negative divergence in play. VEEV - Quite volatile. Today's earlier low of 26.37 was just .16 above our 2nd entry of 26.21. Price and/or gap support is where I expect VEEV to turn back to the upside. This one is volatile though, so if you trade it, make sure you can stomach the price swings. Small Cap Watch List: NX - Remains in a 17.50-18.50 trading range for now. The overall performance of small caps not helping this one. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com