EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Tuesday: ADTN, AMD, ATI, BHI, CA, CREE, DAL, HAL, IBM, JNJ, MS, MTB, NFLX, RF, SAP Wednesday: AMTD, AXP, DFS, EBAY, FFIV, KMI, PLXS, SLM, SNDK, UNH, URI, USB, XLNX Thursday: ALTR, BBT, COF, COV, CP, INFN, ISRG, JBHT, KLAC, LUV, MCD, NOK, PCP, SBUX, TRV, UAL, UNP, VZ MARKET NOTE: Mixed signals continue as consumer discretionary stocks lag badly today. Home construction is weak and gambling stocks are being taken out behind the woodshed. Earnings reports will begin to accelerate this week and especially next week so please pay attention to earnings dates. I personally don't like holding into earnings reports. If you do, that's fine but at least be aware of the date and don't be caught off guard. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. Many stocks will be removed from our Watch Lists in the next couple weeks as their earnings reports near. We'll also be replacing them with stocks that show superior results and strong technical reactions. 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 - Failing at falling 20 day EMA resistance, but thus far holding gap support. Good stock, bad market. AMGN - Gapped slightly above 20 day EMA, but once again failing to hold it. Short-term bearish until this technical issue is resolved. ILMN - Very volatile of late, but today's huge volume accompanies a big gain. Remains bullish, but in a wide 175-200 trading range. V - Like Friday's bullish reversing candle at gap support, but another that is failing at its declining 20 day EMA. Mid Cap Watch List: CUBE - Has benefited mightily from rapidly falling treasury yields, so action from here likely dependent on whether treasury yields establish new recent lows. Booking profits not a bad idea here with an RSI of 77. INFN - Has been solid at times, although weak of late after its recent downgrade. Reports earnings on Thursday so WE ARE REMOVING INFN FROM OUR WATCH LIST. MLNX - Love the recent action here, but poor performance of small stocks overall holding this one back. Still, a high volume breakout above 46.75 on a closing basis is the confirmation we're awaiting for higher prices. Such a breakout would measure to 52.50 initially. ODP - Short-term weakness overshadowed by very strong longer-term volume trends and price action. TASR - Seeing a slight uptick in volume and bouncing nicely off price support at 25.00 and its rising 20 day EMA. Small Cap Watch List: QLGC - Thus far bouncing off its Friday test of rising 20 day EMA support. DELETIONS FROM OUR WATCH LISTS: INFN is being removed as it will report earnings on Thursday. There are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com