EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: AA Tuesday: CSX, KBH MARKET NOTE: Our major indices are down today, but remain more in a sideways consolidation pattern than anything else. Alcoa (AA) reports after the bell today to "kick off" earnings season, though it's unlikely that traders are expecting too much out of a materials stock given the performance of this sector heading into earnings. 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 - Short-term failure at both key moving averages (20 day and 50 day) not great action, but gap support just below 70 still holding for now. BMY - Nice breakout on the open today on heavy volume. Great performer relative to the overall market for sure. ILMN - Consolidating above its recent breakout at 195.00. RAX - Unwinding its negative divergence by trading sideways. Note the MACD is approaching centerline support. Mid Cap Watch List: INFN - Holding steady near 14.00, but thus far failing to negotiate its overhead moving averages. MLNX - Decent action of late, but profit taking on light volume today taking the stock lower. ODP - Traded beneath its 20 day EMA earlier today, but has recovered near that key moving average. Current price represents nice reward to risk entry or partial entry. VDSI - Volume is heavy today on its intraday breakdown. A recovery and close above 25 would be bullish, while failure to do so could lead to much more short-term weakness. Small Cap Watch List: QLGC - Down slightly, but holding above its rising 20 day EMA - for now quite bullish. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com