EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: BRCM, DFS, HOG, ISRG, ITW, KMB, KO, LMT, MCD, NBR, TRV, UTX, VMW, VZ, YHOO Wednesday: BA, BIIB, CTXS, DOW, EMC, GD, LRCX, NOC, NSC, R, T, TSCO MARKET NOTE: We've continued to make that bullish run towards key resistance....and then some. At last check, all of our major indices had cleared 20 day EMA resistance and price resistance that was left from recent price breakdowns. The uptick in volume is helping to convince traders that this move is real. So long as the market holds onto today's gains and keeps printing higher highs and higher lows on a daily basis, it's difficult to argue with the uptrend. Just remember that this week typically is quite bearish from an historical perspective so it could turn ugly again quickly. It's simply a difficult environment to trade. 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 - Has cleared its moving averages, now it must negotiate the 220 level, which has been difficult in October. One step at a time. COST - Hit our 129 price target just a couple days after adding it to our Watch List. GREAT TRADE!!! We will keep COST on our Watch List, but await a better reward to risk entry point for re-entry. If you continue to hold, just make sure that the close is above 129.00 because volume is suspect. NKE - Great action and currently back above 90.29 resistance. Like COST, needs more volume to confirm this breakout so be careful if we fail to breakout on the close. In other words, consider taking profits if it fails. PLL - Excellent move here, but again volume is not what I'd like to see. Next resistance is near 86, as evidenced by failures there in May and June. My target remains 90.25 but short-term traders could certainly book some profits and lower risk up to that 86 level. Mid Cap Watch List: AMBA - Struggling thus far with gap resistance from earlier in October. DSW - Up over 3% today - solid action. JACK - 69.19 is the closing breakout level. What a great relative performer this one has been! SNCR - Long tail to the top today could mark a top. Also, this could represent a right shoulder in a topping H&S pattern. Nothing wrong with taking profits on this one although a strong finish today would be bullish. Small Cap Watch List: NX - Hit 19.31 earlier today, just four pennies shy of our 19.35 price target. Excellent action. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com