EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: BK, GE, HON, KMB, MCD, STT Monday: DHI, MSFT, NSC, NVR, RCL, STX, TXN MARKET NOTE: There's more bullish action today, especially on the NASDAQ as Starbuck's (SBUX) earnings and subsequent price rise to an all-time high give the stock market yet another lift. Technical condtions are much stronger in the near-term now and the longer-term has remained bullish throughout the six year bull market. The only issue currently is that the intermediate-term is in a consolidation mode that could lead to more back and forth action. Still, odds are that we'll see a breakout before we see a breakdown. 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 - Nice recent recovery now has the stock near 74.00 an area of price resistance in June and September. A break above would likely lead to a test of the high in December. AMGN - Yesterday's close above 20 day EMA resistance improves the short-term outlook here. HSIC - Broke out to fresh closing highs on Thursday, but could use more volume. ILMN - Lots of volatility here of late, but today threatening another breakout. Solid. RAX - Performing quite well since resetting that daily MACD at centerline support with a corresponding 50 day SMA test. V - Hitting trendline resistance and its moving averages. A break above both would be bullish near-term. Mid Cap Watch List: ODP - Nearly tested rising 50 day SMA support and bounced. Once again, it's now hitting overhead moving average resistance at the 20 day EMA. TASR - Opened and closed on Thursday at a fresh new high. Great action as it pushes forward again today. Super trade. 30.00 is our target and we're nearly there. VDSI - Bounce off price support continues. 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