EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: AEO, AMBA, COO, DG, FNSR, KR, SHLD, SWHC, TD, ULTA, UNFI Friday: BIG, BNS MARKET NOTE: Long-term negative divergences are emerging more frequently on price highs and this is developing just prior to an historical period known for pullbacks and consolidation. Don't be afraid to pare back on holdings, especially if we get a positive reaction to tomorrow's nonfarm payrolls report. 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: BMY - Printing lowest level of past several trading sessions with a long-term negative divergence in play. I'd look for either short-term selling or possibly sideways consolidation over the next 1-2 weeks. COST - Parabolic move higher continues, but the WEEKLY RSI is now close to 80. I certainly wouldn't be comfortable entering at this stretched level and COST also has printed a long-term negative divergence on its daily chart. ILMN - Big move early in the session took ILMN up to 195.00 price resistance, a decent level to take at least partial profits. Still looks solid, just normal selling at resistance. NKE - Near 100.00 and earnings will be out soon. WE ARE REMOVING NKE FROM OUR WATCH LIST AT THE CURRENT PRICE. Great trade!!! RAX - Yet another breakout today. Mid Cap Watch List: CRS - Broke its 20 day EMA support recently on light volume, but made the recovery back above it. Ok for now. CUBE - Volume ticking higher of late on down days with a long-term negative divergence in play. Taking profits here makes sense. IRBT - Normal profit taking after a solid breakout on Wednesday. MLNX - Watching the now-rising 20 day EMA for support with the recent 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 - Quickly recovered all of its losses from Wednesday that were triggered by an analyst downgrade. Technically, looks very good just overbought. CMPR - Could use more volume to support the price move, which has been outstanding since the 20 day EMA test. Small Cap Watch List: QLGC - Now testing some trendline resistance from the past month. DELETIONS FROM OUR WATCH LISTS: NKE is being removed as it has earnings fairly soon. There are no other deletions today unless closing stops are triggered. Continue to watch SNCR. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com