EB Watch List Update Report

Dear Members, We're sending this out early today as we're adding 10 new stocks to our Watch Lists, essentially doubling the size of our list. You'll find them under "Additions to Watch Lists" below. KEY EARNINGS REPORTS: Thursday: AMAT, DDS, JWN, KSS, MFC, SBH, SINA, TYC, VIAB, WMT Friday: LNG, TTM MARKET NOTE: The U.S. stock market is off to another nice start. We're not skyrocketing, but up is up. Volatility has quieted down significantly over the past few weeks, which sets the market up for this lethargic, almost boring kind of incline. The good news is that we're up just about every day. The bad news is that the small caps (Russell 2000), our most aggressive area of the market, lags continually. While we're seeing all-time highs daily on the Dow Jones and S&P 500, small caps still have another 2% or so until they reach all-time highs. ADDITIONS TO WATCH LISTS: There are 10 additions to our Watch Lists today (annotated charts will be provided tonight). They are as follows: Large Cap Watch List: AMGN - $123.2 billion market cap BMY - $96.2 billion market cap HSIC - $11.0 billion market cap RAX - $6.2 billion market cap Mid Cap Watch List: ODP - $3.65 billion market cap CUBE - $3.4 billion market cap VPRT - $2.2 billion market cap SNCR - $2.0 billion market cap VDSI - $1.1 billion market cap TASR - $1.05 billion market cap Comments: Of the above 10 additions, SNCR is at a level where I would consider an initial entry (49.67). CUBE also bounced off gap support at 20.77. The others are extended and could use at least a 20 day EMA test before initial entry. I'll begin tracking them for you on a daily basis as part of my Watch List analysis. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: ILMN - Bouncing back to the upper end of its recent 185-190 range. Mid Cap Watch List: CRS - Initial bounce took place from 51.00. Next breakout would occur on a close above 53.00. IRBT - Hugging its 20 day EMA and attempting to bounce off of it - solid action thus far. MLNX - Struggling today after printing a very bullish red hollow candle on heavy volume. I'd now use the open from yesterday as my new closing stop (41.24) VEEV - Been a solid performer and currently trading above all of our entry levels, but with earnings up in a couple weeks we're going to REMOVE VEEV FROM OUR WATCH LIST. Small Cap Watch List: No comments at this time. DELETIONS FROM OUR WATCH LISTS: VEEV has been a nice performer, but we're making a pre-emptive strike and removing it as earnings will be coming up in just a couple weeks. There are no other deletions today unless closing stops are triggered. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com