EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: MON Thursday: APOL, BBBY, FDO, GPN, STZ MARKET NOTE: Our major indices are recovering fairly nicely off the recent onslaught of selling, but we're certainly not out of the woods. In fact, there are signs more selling could be right around the corner. First, we need to see our major indices we recapture their respective 20 hour EMAs on the 60 minute charts. Those moving averages are declining and many times act as major resistance on short-term rallies. Secondly, leadership thus far today is coming from healthcare and consumer staples, two defensive-oriented sectors. Technology and financials, two influential aggressive sectors lag all the other sectors. Finally, after a buying spree in treasuries sent the 10 year treasury yield ($TNX) spiraling to nearly two year lows in recent days, there's been almost no profit taking in this conservative asset class as the TNX is unchanged at last check. Clearly, this isn't great action so consider the possibility of more selling ahead. The good news is that those 60 minute MACDs are now turning higher so another price low will likely generate a positive divergence and possibly mark a more significant low just as we prepare for earnings season. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. There will be many changes in our Watch Lists over the next couple weeks so stay tuned. 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 final entry at 70 on Tuesday and is bouncing slightly. AMGN - Nice bounce today, but yesterday's close failed to hold recent support at 155 so a short-term advance may struggle to clear the now-declining 20 day EMA. ILMN - Great relative performer of late. 195.00 is closing price resistance and today's high was 194.79. Think profit taking until we see the breakout on accelerating volume. Mid Cap Watch List: CUBE - Breaking out yet again, likely benefiting from the much lower treasury yields. INFN - Bouncing slightly today after a downgrade on Tuesday hammered the stock. Technically, I still like INFN over the intermediate- to long-term, but in the short-term 12.25 gap support could be in play. MLNX - Volatility here continues. Yesterday, MLNX closed at a 7 week high on increasing volume on a poor market day. Today, the market's attitude has improved and MLNX is down a buck on light volume. Go figure. ODP - 20 day EMA looks like solid entry. CMPR - High wave candle today showing lots of indecision as CMPR tests rising 50 day SMA. Small Cap Watch List: QLGC - 12.75-13.00 should offer up nice support. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com