EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: AA, COST, MON Thursday: FDO, INFY, PEP, SWY MARKET NOTE: Volatility is expanding and with that comes increased movement in our major indices. The NASDAQ's gap higher, followed by a 1% decline in a little more than an hour to the renewed buying interest in the last hour underscores how emotional trading has become near-term. The short-term trend is lower and with short-, intermediate- and long-term momentum pointing lower, it's difficult to become overly optimistic on the long side right now. The first key level of resistance, in my opinion, will be the falling 20 day EMAs on the daily charts. Until that occurs, I'd maintain a bearish outlook near-term. 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: NKE - Back near short-term support at 88.00. PLL - Triggered our 2nd entry at 82.00 today, while testing both price support and its now-rising 50 day SMA. SPR - 35.50-36.00 is very solid support for SPR should prices reach that level. Mid Cap Watch List: JACK - Relative strength here continues and has been quite strong. VEEV - Has ventured back into the middle of its gap support zone on fairly light volume. I expect a recovery sooner rather than later, after having already triggered 2 of our 3 entry points. Small Cap Watch List: NX - Trading at its lowest level since adding to our Watch List. Volume is light and our 2nd entry of 17.00 has not yet been triggered. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com