EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: NX Monday: PAY MARKET NOTE: Crude oil prices have tumbled beneath $60 per barrel. That's leading to rapidly falling gas prices at the pumps and "fueling" consumers' appetites for other areas of spending. Thursday's retail sales numbers certainly support that notion as many retailers today are seriously outperforming the market. I'd look for this theme to continue into the end of 2014. On a separate note, we removed NX from our Watch List yesterday as they were due to report quarterly results this morning. Check out the massive volume selling and big red candle today. Two months of gains evaporated in 3 painful hours of selling. This is the poster child of why we don't suggest holding stocks into earnings. ADDITIONS TO WATCH LISTS: We are adding one stock to our Large Cap Watch List today as follows: ADBE - $38.00 billion market cap, enter at current price (76.17) and again at the rising 20 day EMA. I'll provide an annotated chart with more details over the weekend. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: RAX - Gapped lower and tested its rising 20 day EMA, an entry point. Resistance at 47.60 should be respected, but very solid action on RAX thus far. Mid Cap Watch List: CRS - Gap down at the open triggered our second entry. After more selling early on, CRS is recovering nicely with a hammer currently. A strong finish today obviously beats the alternative. We are going to lower our Closing Stop here to 45.75, just below major gap support. INFN - Gapped below 20 day EMA, but performing nicely relative to the overall market. ODP - Absolutely on fire. Great volume and great price action. Congrats to those holding. TASR - Consolidating now in a wide range between 21 and 25. Expect more volatility in the days ahead. VDSI - Daily MACD rapidly working its way towards centerline support. A trip to test the 50 day SMA would represent a very strong reward to risk entry. Small Cap Watch List: QLGC - Clearing short-term resistance at 11.75 - bullish. A further advance and close above 12.00 would be even more bullish. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com