EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: CVX, IR, LLY, LM, MA, MO, NWL, TYC, TSN Monday: APC, IDTI, LII, PBI, SYY, XOM MARKET NOTE: Consolidation continues today with a few notable stocks doing well after its latest quarterly earnings report. Google (GOOGL) and Synaptics (SYNA) are two such companies. Unfortunately, we've also seen disappointments from the likes of Deckers (DECK) and Align Technology (ALGN). Thus, the back and forth action continues. One big negative, however, is that the 10 year treasury yield ($TNX) has broken down beneath the recent low of 1.70% due to the lower than expected reading on advanced Q4 GDP growth. This flight to safety will become more problematic if the TNX falls beneath 2013 support at 1.60% as the next major level would be the 2012 low near 1.40%. ADDITIONS TO WATCH LISTS: We are adding one Mid Cap Watch List stock as follows: SYNA - $2.79 billion market cap, initial entry at current price (75.67) with 2nd entry at 71.80 (price support) and third entry at 68.31 (gap support). An annotated chart and further details will be provided at our website over the weekend. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: BA - Down slightly today, but not bad action after the huge advance the past two sessions. HSIC - Testing 20 day EMA support. RAX - Hammer on Thursday at price support in the 44-45 area was significant. RHT - Today's low of 63.75 nearing our second entry at 63.50. Mid Cap Watch List: ODP - Testing its rising 50 day SMA once again today on lighter than normal volume. TASR - Long-term negative divergence problematic in the near-term, but the long-term volume trends here are very bullish. VDSI - Had closed just below key support at 21.13, but reversed nicely to the upside on Thursday. Note the daily MACD is beginning to turn higher once again so another test of the recent low could print a solid long-term positive divergence. Small Cap Watch List: There are no Small Cap Watch List stocks 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