EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: DRI, FDS, NAV Wednesday: FDX, GIS, JBL, JOY, ORCL MARKET NOTE: Crude oil prices slipped in pre-market action, but have recovered and turned positive. That reversal set the stage for a reversal in U.S. equities as well. As you might imagine, energy is leading the push higher in a VERY big way. At last check, the XLE (energy ETF) is up 2.82%, nearly double that of the next best sector - industrials, which are up 1.59%. There is wide participation, though, as all nice sectors are higher. Given the huge amount of net in-the-money put premium in the energy space, I would not be surprised to see this sector outperform the balance of the week into options expiration Friday. 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 - Trading beneath price support of 74.00, but still ok with rising 20 day EMA support and gap support still providing solid entry points for bulls. AMGN - Big recovery off the intraday bottom. I like the reversing candle if it holds into the close, although a 50 day SMA test still cannot be ruled out. HSIC - Huge rally off gap lower this morning, reversing candle would be bullish. ILMN - Leaving another long tail in the 170s while currently trading just above 180.00. 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: INFN - Nice bullish behavior as INFN holds rising 20 day EMA support. Still awaiting a breakout above 14.96 on increasing volume. MLNX - Down fractionally but technical conditions here still fine - just more consolidation. 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 - Up 5% or so since Monday's intraday low. The volatility here is obvious. Small Cap Watch List: QLGC - Breaking out again. Only negative is the stock could use more volume today to confirm the 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