EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: LNG, TTM Monday: A, JEC, TSN, URBN MARKET NOTE: Quarterly earnings reports are slowing down and very few companies will be reporting next week that could significantly sway the market. Now the market will trade off of technical clues and seasonal patterns primarily, barring some unforeseen event. Watch rising 20 day EMAs on our major indices for initial support. I'd expect to see buyers return on such tests given the strong momentum in the market currently. 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: AMGN - Having its worst day since the recent uptrend began. Continued selling down to the rising 20 day EMA would provide an initial entry opportunity. For those with more patience, the closer AMGN gets to price support near 145.00, the better the reward to risk. ILMN - Triggered our final entry at 179.55. A close back above this level today would be bullish. Otherwise, the rising 50 day SMA near 174 would be the next key level of support. Mid Cap Watch List: AMBA - Pulling back to its most recent breakout level near 47.50. DSW - Hit 32.17 earlier today, less than a dime from key price resistance at 32.24. DSW will report its quarterly results in the next couple weeks so I believe this is a good time to REMOVE DSW FROM OUR WATCH LIST. GREAT TRADE!!! IRBT - I think it's fairly clear at this point that 34.00 represents a nice support area as we bounced off that price yet again this morning. MLNX - Probably wins the award for most volatile stock of late on our Watch Lists. I mentioned that 41.24 would represent new closing support. Because of the volatility, I'm actually going to give this one more room down to 39.75 on a closing basis, which is just below the open on the gap higher in late July. There is a TON of upside in MLNX if it can return to 46.75 and close above it. To me, that justifies giving this one more room to the downside. TASR - While it would be best to see a pullback to enter this one, keep in mind a close over 20.50 would represent a MAJOR breakout in TASR. So if volume confirms, you could enter an initial position on that breakout. Of all the stocks on our Watch List, TASR may have the best volume trends. Small Cap Watch List: No comments at this time. DELETIONS FROM OUR WATCH LISTS: DSW 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