EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: AAP, AOL, APA, BEBE, DIS, DTV, HSP, IGT, MNST, MTD, NVDA, PRGO, RIG, TAP, WEN Friday: BRK.A, CTB, HUM, MT, PBR MARKET NOTE: Most of the short-term signs in the market are bullish, especially the all-important price/volume combination. But the 7th to the 10th of calendar months generally can be difficult as money flows early in the money drive prices higher and then profit taking kicks in. We also have a key nonfarm payrolls report due out Friday morning with the NASDAQ sitting in a rather precarious position (potential reversing island cluster pattern). A short-term top could be marked with a gap lower on the NASDAQ Friday morning beneath 4600 so be on the lookout for that if the jobs number disappoints. ADDITIONS TO WATCH LISTS: We are adding four stocks (annotated charts will be provided on our website tonight) to our Watch Lists today as follows: Large Cap Watch List: V - $157.2 billion market cap company. It's overbought currently and needs some relief before a solid reward to risk entry point will surface. The rising 20 day EMA is currently at 226 and the top of gap support is just above that level. Let's look for a better entry. Mid Cap Watch List: CRS - $2.7 billion market cap company. Love the current bull flag pattern coming off the positive divergence in mid-October. Current price represents initial entry, although a better option would be 48.00 on some short-term selling. INFN - $1.7 billion market cap company. I like three entries - current price of 13.68, the rising 20 day EMA currently at 12.91 and gap support at 12.25. The long-term weekly chart looks superb on this one. IRBT- $1.01 billion market cap company. Very strong volume on recent gap higher with solid earnings. Today's low tested the rising 20 day EMA and gap support. I like entry at the current price of 34.42 and again at 34.00 and 33.40. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: COST - Great action, just too overbought to enter if not in it. NKE - Great action, just too overbought to enter if not in it. PLL - Great action, just too overbought to enter if not in it. Mid Cap Watch List: AMBA - 42.50-44.00 represents solid support on this volatile stock. Been great action though. DSW - Been trading in a very narrow 29.47-31.29 range for two months. A push to 32.24 would be a level to consider profits. GRUB - Bad day on Wednesday and it closed beneath our stop of 35.25 so we have REMOVED IT FROM OUR WATCH LIST. MLNX - For the last week has been riding higher and bouncing off 20 day EMA support. VEEV - Dropping recently on light volume; could be setting up another trendline test in the 26-27 area. Small Cap Watch List: No comments at this time. DELETIONS FROM OUR WATCH LISTS: GRUB has been removed for its closing stop violation on Wednesday. There are no other deletions today unless closing stops are triggered. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com