EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: HRB, MTN Tuesday: AZO, CONN, KFY, MARKET NOTE: Our major indices are very close to the flat line as traders contemplate the risk of going long with such questionable short-term issues looming. Slowing momentum is apparent as are uninspiring volume trends of late, not to mention the typically weak second week of December. Be cautious and don't be afraid to build cash by taking at least partial profits. 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 - Pushing higher yet again. The strength may in part be due to the announced deal between MRK and CBST. BMY - Ditto AMGN. COST - Has seen little let up in buying, but it's so stretched and negative divergences may have caught up to this one in the near-term. RAX - Negative divergence in play and we're seeing a possible reversing candle today. Be cautious. Mid Cap Watch List: INFN - Having a weak day, but this one has been strong of late so a little profit taking isn't a bad thing technically. The rising 20 day EMA and then 13.50 remain two solid entry points. IRBT - Down 4% on light volume. Would like to see this one hold its rising 20 day EMA on the close. MLNX - Performing well on a relative basis today. TASR - Rough day on heavy volume. The rising 20 day EMA is near solid price support just below 21.00. That would be solid entry (or re-entry for those who took profits last week). Small Cap Watch List: QLGC - Needs a breakout above trendline resistance at 11.75. Failure to do so keeps 11.25 support in play on any short-term selling. 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