EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: BBRY, CCL, KMX, PAYX Monday: None MARKET NOTE: We've seen a huge rally this week, much due to options expiration as the XLE (energy) and XLB (basic materials) have far outpaced the other sectors. Technical developments could lead the rest of the market next week, however, as the S&P 500 and Russell 2000 both move within striking distance of key technical breakouts. It's particularly important to see small caps participating so the 1191 level on the Russell 2000 will be worth watching into today's close and early next week. If we clear it, look for 1210 next and a breakout there could really fuel a huge rally into the early part of 2015. 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 - Failed to hold its recent breakout above 74, but did bounce nicely off rising 20 day EMA support. Consolidating for now, but I expect to see a further rise on ADBE into the 80s sooner rather than later. BMY - Nice volume today, supporting what could be yet another breakout. HSIC - Decent gains off recent 20 day EMA entry. 137.50 is closing resistance. Want to see volume accelerate on breakout. For those with short-term profits in mind, 137.50 is not a bad area to sell. RAX - 47.74 is your closing price resistance. That's a decent area to take profits or at least partial profits. V - Quick 12 buck recovery has this one challenging price resistance at 265. A high volume breakout would be bullish, but we could see short-term selling at this level. Mid Cap Watch List: CUBE - Breaking out again with strong volume. Great performer. INFN - Solid volume trends and likely heading higher. Short-term we might consolidate in 15.00-15.75 range. MLNX - Short-term, the bulls have their sights set on 44.45. A close above could trigger additional buying. The longer-term resistance level is 46.75. TASR - Failure to capitalize on the opening gap breakout on Wednesday probably having negative effect on the stock near-term. A close above 25.04 now needed on volume to encourage more technical traders to jump on board. VDSI - Huge rally off that 50 day SMA test that reset the daily MACD. Volume has been solid past two sessions as well. Very good action. Small Cap Watch List: QLGC - Retreating today after testing key long-term resistance near 13.00. Makes sense to lower exposure here and possibly re-enter if we get a rising 20 day EMA test. Volume trends are strong here. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com