EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: AMX, BMY, CL, F, PG, STT, UPS Monday: AMGN, AVB, BWLD, HUN, MRK, STX, TMUS, TWTR MARKET NOTE: We've seen a mixed bag with earnings season thus far. There've been some excellent reports that have triggered renewed optimism like Apple (AAPL), Illumina (ILMN) and many others. But on the flip side, we've seen bombshells from the likes of IBM and, last night, Amazon.com (AMZN). We've also seen a mixed bag in terms of leadership during this rally. Many of the most oversold sectors like energy (XLE) have been behind much of this rally. In addition, defensive groups have led the action two of the past three sessions, making it very difficult to trust the rally. Still, the NASDAQ has continued its winning streak of higher highs and higher lows on its daily chart and until this streak ends, it's difficult to bet against a continuance of the rally in the near-term. 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 - Nice recovery off its rising 20 day EMA - bullish signal. ILMN - Back above our original entry from yesterday. The current price would represent a fresh all-time closing high. Nice action. NKE - Mixed signals abound. I like the stock, but the hovering just above 90 with a long-term negative divergence in play is tenuous. Mid Cap Watch List: GRUB - This one is one of the smaller Mid Cap stocks on our list and the volatility is already shining through - unfortunately in a bad way thus far. Still, the weakness presents a buying opportunity in my opinion for those with a higher risk tolerance. Technically, this stock is set up very similar to the way NX traded. After a period of brief weakness, it gathered itself and eventually hit our target. I expect the same here. JACK - May need to be moved to the railroad industry. No stopping this freight train. MLNX - very nice early action here. A close above 46.75 would be short-term bullish and volume is well above normal and would confirm the breakout. SNCR - 46.49 remains the key resistance. The bulls keep knocking on the door and volume remains elevated so a breakout would be bullish. Small Cap Watch List: No comments at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com