EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: ANF, ARO, AVGO, GES, KFY, PVH, RY, SNPS Thursday: AEO, AMBA, COO, DG, FNSR, KR, SHLD, SWHC, TD, ULTA, UNFI MARKET NOTE: We've experienced a very nice rally of late with nice profits in most of our Watch List stocks. Paring back a bit over the next couple days and raising some cash makes sense as we're beginning to see daily MACDs rolling over just before an historical period of selling (typically between December 6 and December 15). Selling at least partial positions lowers risk as we approach this period. 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 - Reversing candle today with a long-term negative divergence? Could be a short-term warning sign. BMY - Lots of recent breakout attempt failures with tails above price resistance the past four trading sessions. ILMN - Simply consolidating above its 20 day EMA at this point. NKE - Will be reporting quarterly results soon, so be sure to take profits in this one if you own. RAX - Yet another breakout today. Mid Cap Watch List: CRS - Needs more volume, but the price action back above the 20 day EMA is nice thus far. INFN - Resuming uptrend and possibly forming right side of cup as volume expands. IRBT - Excellent volume today to support what appears to be another breakout. MLNX - Light volume today, but continuing the rally after yesterday's bullish symmetrical triangle breakout. ODP - Bullish bounce off 20 day EMA support. SNCR - Have closing stop here at 41.50. It straddled 41.50 into yesterday's close, literally trading at 41.51 until the final tick and it closed at 41.49. If you sold, simply move on. Because it closed just about squarely on 41.50, we will continue to keep it on our Watch List for now. A close below 41.49 and it will be removed. TASR - Rough day today after several strong sessions. Stock was downgraded in pre-market action, triggering the weakness. VDSI - Broke out on the open at 30.19 (surpassing previous candle body high of 29.98), but thus far printing a bearish engulfing candle with a long-term negative divergence in play. If this one doesn't strengthen into the close, it wouldn't be a bad idea to capture profits. Small Cap Watch List: QLGC - Having a very solid first day on our List, bouncing off our initial entry and recent price support. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are triggered. Continue to watch SNCR. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com