EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: 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 Wednesday: BA, BIIB, CMPR, CTXS, EMC, FB, GD, HES, IP, LVS, MLNX, QCOM, SLG, TSCO MARKET NOTE: Global equities are under pressure with weak earnings results the primary culprit here in the U.S. Many large cap multi-national companies posted either weak results or a lowered forecast, or both. One of the themes is that earnings are being heavily impacted by a rapidly rising dollar. This would be a much bigger factor for companies that do business outside the U.S. and that's why we're seeing the small cap Russell 2000 hold up better today on a relative basis. Most of the companies in the Russell 2000 have little exposure to a rising dollar. 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: ADBE - Following the software group lower today after the Microsoft (MSFT) fiasco. Price support still holding. RAX - Light volume consolidation helps in the intermediate-term, although not great in the short-term. RHT - Perhaps getting caught up in the MSFT news as well. Technically, bounced off 50 day SMA test earlier today. V - Weakness today. A close back above 252 today would be short-term bullish while a close beneath could open the door to more short-term selling. 247-248 is much more significant as a close beneath that level could see many more sellers on the stock. Mid Cap Watch List: MLNX - Down on light volume to test 50 day SMA support. WE ARE REMOVING MLNX AS IT REPORTS EARNINGS TOMORROW. TASR - Solid action given the overall market environment. VDSI - Down to test key gap support at 21.13. Solid reward to risk entry on this specific stock, but of course the market environment is something to consider as well. CMPR - Behaving nicely, but earnings on deck. WE ARE REMOVING CMPR AS IT REPORTS EARNINGS TOMORROW. Small Cap Watch List: QLGC - Slightly below its 20 day EMA, but continues to perform nicely on a technical basis. DELETIONS FROM OUR WATCH LISTS: MLNX and CMPR are being removed from our Watch Lists as they report earnings on Wednesday. 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 other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com