EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: COST, HOV, TOL, VRA Thursday: ADBE, CIEN, LULU MARKET NOTE: Tuesday was a wild day for U.S. equities with significant weakness on the open, followed by renewed buying interest throughout much of the balance of the session. By the end of trading, there were no significant losses of support. In fact, key areas of support like the rising 20 day EMAs held into Tuesday's close. A major price support level on the Russell 2000 in the mid-1150s also held. Today, we're once again seeing weakness that could be attributed to daily MACD momentum issues. Also, we know this week is not a good one historically for stocks. The good news, however, is that once we clear Monday's close, historical tailwinds should begin to kick in. ADDITIONS TO WATCH LISTS: There are no additions to our Watch lists today. If the weakness in the market persists, we'll be looking to add a few names as the end of the week nears. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: HSIC - Awaiting at least a 20 day EMA test before entry. ILMN - Volume trends remain quite strong as the stock continues its consolidation. RAX - Daily MACD now printing long-term negative divergence. If in this one, taking profits at the current price and re-entering at a later time makes good technical sense. Mid Cap Watch List: CUBE - Threatening another breakout, but the negative divergence remains the primary issue with regard to entry. INFN - Another 20 day EMA test today. Looks solid. IRBT - Light volume gain on Tuesday a distant memory today as further light volume accompanies the 2.5% selloff. 34.00 remains a solid support level. ODP - Hit key closing resistance at 6.95 before selling off a bit. Volume is quite strong and would confirm another breakout. TASR - Lowest volume of the past week to ten days accompanying a bit of selling today. TASR remains in very good shape technically, however. VDSI - Volume accelerating on today's near 5% advance. There's still an issue with the long-term negative divergence. Small Cap Watch List: QLGC - Nice recovery into the close on Tuesday and today's intraday high cleared resistance at 11.75. But QLGC has moved back beneath this key short-term price resistance level. Needs more volume to confirm this breakout. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com