EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: ADTN, C, CSX, INTC, JBHT, JNJ, JPM, LLTC, WFC Wednesday: AXP, BAC, EBAY, KMI, LVS, NFLX, PNC, SCHW, STJ MARKET NOTE: The Volatility Index (VIX) closed at its highest level in more than two years on Monday - nearly 25! That combined with options expiration on Friday will make trading VERY unnerving for most market participants. My gut feeling says we'll see further rally this week followed by more selling next. Of course, this is no guarantee, but given the market makers' propensity to make money and history's propensity for lower prices next week (worst week of the year historically for the S&P 500 dating back to 1950), this would seem the likely course of action. 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 - Downtrending having lost recent support. Final entry is at 194.00. We came up a couple dollars short earlier today. CMG - Lost price support at 350.00 and has come back up today to test. I see likely failure either here or at 20 day EMA with another leg lower - especially if the market continues its selloff next week. NKE - Flat today, but does remain in an overall uptrend after its latest earnings. PLL - In 4-5 week downtrend, but with today's nice gains this one has really outperformed on a relative basis. Mid Cap Watch List: AMBA - Continues to print higher highs and higher lows, so despite all the volatility, AMBA is still bullish in my view. DSW - Very nice relative performer. JACK - Given its technical outlook, today's 20 day EMA test not a bad area for re-entry if you sold recently. SNCR - Has fully unwound its long-term negative divergence. Just be careful if volume accelerates and 41.00 support is lost. 36.50 would be next. VEEV - Continuing to rally off its three entry points. Small Cap Watch List: NX - Very nice rally today after just barely failing to trigger 2nd and final entry at 17.00. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com