EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Monday: DHI, MSFT, NSC, NVR, RCL, STX, TXN Tuesday: AAL, AAPL, AMGN, BMY, CAT, CNI, COH, DD, EA, FCX, GLW, ILMN, ITW, JNPR, LMT, LXK, MMM, PFE, PG, T, UTX, VMW, WDC, X, YHOO MARKET NOTE: Action today is fairly lethargic as New York prepares for a potentially historic snowfall today and tomorrow. Forecasts are for possibly 2 feet of snow, maybe more, in New York City, which could make it the biggest snowfall on record there. Volume today has slowed, due in part to weather conditions and also due to Apple's earnings report to be released on Tuesday after the market closes. The Federal Reserve will announce its latest policy statement on Wednesday at 2pm and traders are anxious to see how the Fed reacts to the stimulus package announced by the European Central Bank (ECB) last week. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today and our Watch Lists will become much smaller over the next week or two as we remove stocks heading into their earnings reports. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: AMGN - Back above its 20 day EMA, but WE ARE REMOVING AMGN FROM OUR WATCH LIST AS THEY REPORT EARNINGS TOMORROW. BMY - Technically looks solid, but WE ARE REMOVING BMY FROM OUR WATCH LIST AS THEY REPORT EARNINGS TOMORROW. ILMN - Breaking out to fresh new high, but WE ARE REMOVING ILMN FROM OUR WATCH LIST AS THEY REPORT EARNINGS TOMORROW. RAX - Failed on its initial attempt to clear resistance just above 48.00. More consolidation would be healthy. V - Trading between gap support to the downside and moving averages to the upside. Mid Cap Watch List: MLNX - Handle back to 20 day EMA support could be complete. Pattern here remains bullish as do volume trends. ODP - Has sold off for a month now, with its RSI falling from 80s to below 50. Reward to risk much better now. TASR - In a world of its own. Measurement to 29.00 after recent breakout above 27.00 is now halfway complete. Small Cap Watch List: QLGC - Continues bouncing off rising 20 day EMA support, which is fine technically. DELETIONS FROM OUR WATCH LISTS: AMGN, BMY and ILMN are all being removed from our Watch Lists as they report earnings on Tuesday. It's up to you whether to hold through earnings reports. Just please understand that stocks can and usually do experience heavy volume and volatility after earnings are released. There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com