EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: BMO, OVTI Wednesday: ANF, ARO, AVGO, GES, KFY, PVH, RY, SNPS MARKET NOTE: The Russell 2000 held onto price support in the mid-1150s on Monday's close and that small cap index is leading the action today. With a solid October construction spending report out this morning, heavy construction and home construction stocks both have performed relatively strong within their respective sectors. Given the selling episode on Monday, this is a very good technical response by the bulls. ADDITIONS TO WATCH LISTS: We are adding one stock to our Small Cap Watch List as follows: QLGC - $996.4 million market cap, entering at current price ($11.31) and again at $10.50. More details on website tonight with annotated chart. 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 - Moving higher, but volume has been lessening and there's a long-term negative divergence. ILMN - 20 day EMA continues to hold on pullbacks. Mid Cap Watch List: CRS - Recent selling has slowed today, but failure to close back above the 20 day EMA will likely send this one down to price support just below 48.00 - our second entry. INFN - Rallying nicely today. Volume could be heavier, but it appears INFN might be establishing the right side of a cup. IRBT - Nice bounce after testing its rising 20 day EMA - remains bullish. MLNX - Gapped up today to clear downtrend line resistance in a bullish symmetrical triangle pattern. ODP - RSI dropping to 50 today - likely closer to a bottom than to a top. SNCR - Not acting well. Hit an intraday low of 39.80 and has rebounded close to 2%. A close below 41.50 would trigger our closing stop, however, and we'll REMOVE IT FROM OUR WATCH LIST. TASR - Highest volume ever for TASR today as it moved well past 24.00. It's well off that high, but the volume trends and uptrend suggest this move hasn't ended. CMPR - A close over 68.82 would represent a breakout, but volume is not confirming. So taking profits at the current level isn't a bad strategy. Small Cap Watch List: No comments at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are triggered. Watch SNCR into today's close as it may trigger a closing stop. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com