EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: JPM, WFC Thursday: BAC, BLK, C, FAST, INTC, LEN, SLB MARKET NOTE: It's been a rough 24 hours for the bulls with Tuesday's afternoon reversal followed by this morning's awful December retail sales report and poor open. Areas like utilities and REITs are benefiting from rapidly falling treasury yields. Copper is now in freefall as well, spooking traders because copper tends to be a barometer of global economic activity. Check out that lineup of earnings between today and tomorrow. Banks are really struggling right now with October support not too far away. This group could benefit from a couple positive surprises. Then one I'll be watching is SLB, perhaps a precursor to what we might expect from oil companies the next few weeks. 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 as earnings season heats up 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 - Down more than 1% today, once again testing price support from past few months just below 70.00. ILMN - Failure to hold onto its recent breakout at 195 is very disappointing action. Volume has accelerated on the selling as well. 175 now represents very important price support so watch that level carefully. RAX - Action of late has been down, but not overly bearish as its long-term negative divergence suggested consolidation or possibly even a selloff to test rising 50 day SMA support and to reset its daily MACD near centerline support. V - Reset its daily MACD. Now let's see if key support from 252-255 holds. Mid Cap Watch List: MLNX - Tested major price resistance on Tuesday at 46.75, actually climbing above intraday before failing later. We now appear to have a cup in play with a possible lighter volume handle down to 20 day EMA support upcoming. Bullish pattern. ODP - Broke slightly below rising 20 day EMA support on Tuesday but did so on fairly light volume. Today the action is higher and a close back above that 20 day EMA would be bullish. TASR - Once again bouncing off its rising 20 day EMA. VDSI - Did not like the close below 25 two days ago on increasing volume. Today's recovery is nice, but the threat of a test of 21 price support has grown considerably. Small Cap Watch List: QLGC - Down today, but an absolute monster on a relative basis of late. Very bullish chart. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com