EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: BK, GE, HON, MS, MTB, STI Monday: AAPL, BTU, CMG, GPC, HAL, HAS, IBM, ILMN, TXN MARKET NOTE: Two things. First, options expire today and market maker manipulation could have a lot to do with this current rally. Second, we're again witnessing significant underperformance on a relative basis by small cap stocks. That had changed for a few sessions, but is once again in focus. Be careful in this volatile market. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists 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 - Up again today and it did negotiate its 20 day EMA on the open, but so far has failed at 50 day SMA resistance. I like the stock, but it has run up nicely the past few sessions. CMG - Removing this one from our Watch List as it reports its earnings on Monday. COST - Nice bounce, but has failed at its falling 20 day EMA on first attempt. May continue to see consolidation for awhile. NKE - Bullish engulfing candle on Thursday followed by strength today. PLL - Very nice recovery past few sessions. Our new Closing Stop is 80.00. SPR - Light volume on rally to test declining 20 day EMA. I'd take profits if you entered lower - or cut loss if in at higher price. Needs to demonstrate it can clear that 20 day EMA in this market environment. Mid Cap Watch List: AMBA - Beautiful move past week, but today's black candle, if it persists, could mark another short-term top. JACK - Simply awesome action off 63.60 price support. SNCR - Probably just consolidating and bullish, but at least take note of a possible head & shoulders top forming with today's high possibly marking a right shoulder. VEEV - Volume really supporting this advance as trendline held. Looks bullish. Small Cap Watch List: NX - Trading at highest level since being added to our Watch List. Nice action. DELETIONS FROM OUR WATCH LISTS: CMG is being removed as it reports earnings on Monday. There are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com