EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: PAY Tuesday: DRI, FDS, NAV MARKET NOTE: The recent top story has been plunging crude oil prices. Oil and other commodities continue to tumble today, but energy and materials are actually two of the better performing sectors. Perhaps much of the weakness has already been built into prices. Or perhaps the market is readying itself for options expiration this Friday and it most definitely behooves market makers to see higher prices in the energy and materials space. Reversing candles in these groups could set up nice SHORT-TERM trades, especially in energy. Just keep in mind that any strength will likely be short-term so if you find yourself with near-term trading profits, don't be afraid to take it and move back to cash. For EarningsBeats, we stick with companies reporting solid revenues and EPS, ahead of Wall Street estimates. That keeps us out of negative areas of the market like energy and materials. Instead, we like to focus on areas with positive momentum. 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: ADBE - Triggered our second entry at 74.00. AMGN - Slowing momentum in the form of long-term negative divergences finally taking a toll. The closer AMGN gets to 50 day SMA support, the better it appears from a reward to risk perspective. BMY - Now more than three bucks off its recent high. Solid gap support at 55.72 and rising 50 day SMA is currently at 56.02. Nice support zone. HSIC - Barring an afternoon reversal, looks to close below its 20 day EMA today. That could set up a test of recent price support in the 128-129 area. ILMN - 50 day SMA test, along with MACD now at centerline. Not a bad time to re-enter if you've been on the sidelines. V - Testing both gap support and rising 20 day EMA support. If it holds, look for another test of 265 resistance. Mid Cap Watch List: CRS - Stopped out on Friday's close below 47.25 and HAS BEEN REMOVED FROM OUR WATCH LIST. IRBT - We have closing stop down at 32.50, but 34.00 has been very solid price support. We're currently below 34 on intraday basis, but volume is light. We'll hold for now, but if you're conservative, selling and taking cash at end of day not bad strategy if 34.00 doesn't hold. MLNX - Put in a one month high earlier today - great action considering the market we've seen of late. ODP - Higher highs. Higher lows. Excellent volume. What's not to like, other than perhaps short-term overbought conditions? TASR - Consolidating now in a wide range between 21 and 25. Expect more volatility in the days ahead. VDSI - Closer it gets to 50 day SMA, the more I like it. Aggressive trade though, not for everyone. Small Cap Watch List: QLGC - Trying to close above 12.00, great action of late. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com