EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ACN, CAG, KBH, NKE, RAD, RHT Friday: BBRY, CCL, KMX, PAYX MARKET NOTE: We saw the reaction to the latest FOMC policy decision that we were expecting. Fed Chairman Yellen stated the Fed's position that interest rates would likely move higher after the first quarter of 2015 but that rate increases would be slow. Buying was strong into yesterday's close and volume was heavy to confirm. This morning, bullishness is seen across the globe in reaction to the Fed's statement and even crude oil prices have seemed to hit bottom - even if only temporarily. That combination has sparked buying in just about every part of the U.S. market and it isn't hurting that options expire tomorrow. Just take one look at the rebound in energy and basic materials stocks during this option expiration week - the smell of manipulation is in the air. 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 - 76.02 represents the next key closing resistance level here. A breakout would be bullish. HSIC - 137.50 is big resistance here and after Wednesday's strong finish and today's push higher, HSIC had climbed within 1% of this level. The daily MACD is weak so taking profits not a bad idea until the breakout is made. ILMN - Strong rally here and now trying to close back above its 20 day EMA. RAX - Nearing key price resistance at 47.74 on fairly light volume and with a nasty divergence possibly developing. I like taking profits in the 47s and waiting for a possible re-entry point lower. V - Tested 264.14 closing price resistance earlier in today's session. Will need more volume to confirm a breakout. Taking profits at or near resistance makes good technical sense. Mid Cap Watch List: CUBE - Has a long-term negative divergence, but Wednesday's breakout came on very solid volume. If in, consider raising closing stop to 21.70. INFN - Broke out on today's open, looks bullish. ODP - And the beat goes on.... TASR - Broke out this morning with the open above 25.00, but has since pulled back significantly. A close below 24.82 today could set up more short-term consolidation while a strong finish to fresh highs later today would be extremely bullish. VDSI - 50 day SMA proved to be excellent entry point as VDSI has bounced nearly 10% from Wednesday's low. A close above the 20 day EMA would add to bullishness. Small Cap Watch List: QLGC - Today's high of 12.94 just six pennies away from our target price of 13.00. QLGC is now up 14-15% since being added to our Watch List not long ago. Capturing profits would represent an awesome trade. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com