EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: AYI, AZZ, INFY Monday: AA MARKET NOTE: The official earnings season "kick off" begins on Monday when Alcoa (AA) reports its latest quarterly results after the bell. AA is trading in the middle of a fairly wide 14.40-17.60 range so it's unlikely that Monday's report will significantly change the overall trend here. Instead, the market will likely be looking to many of the technology, consumer discretionary and financial company reports over the next couple weeks in order to determine the next move in our major indices. 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 - Weak today along with the market, but it does have higher lows in play for the third consecutive session - at least for now. HSIC - Bullish action hanging onto its breakout from Thursday. ILMN - Very bullish action of late. 195.00 and the rising 20 day EMA are the two key support levels for possible entry, if interested. I believe ILMN will see 240.00-250.00 in time, particularly if the overall market cooperates. Mid Cap Watch List: CUBE - Volume trends here very bullish. INFN - Fairly solid recovery after recent downgrade. Next technical obstacle will be gap resistance at 14.32, combined with 20 day EMA and 50 day SMA resistance, currently at 14.29 and 14.23, respectively. MLNX - Has begun to perform extremely well on a relative basis with a MAJOR price resistance test at 46.75. A close above on increasing volume would be extremely bullish. VDSI - Watch 25.00 support. Loss of that level could lead to a test of gap support near 21.00. CMPR - Recent negative divergence led to 50 day SMA test. Since that time, however, the bulls have re-established nice control of the action. Small Cap Watch List: No comments at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com