EB Watch List Update Report

Dear Members, IMPORTANT NOTE: You are invited to participate in a webinar tonight at 7:30 pm EST where we will be discussing the best way to use the EarningsBeats.com service. This will include discussing all of our current Watch List stocks, including recent additions and possibly new additions as well. You will receive room instructions prior to the start of the event. KEY EARNINGS REPORTS: Tuesday: AKAM, CDW, CVS, FTI, KO, NCR, RAI, SEE, TAP, TM, TRMB Wednesday: AEM, AMAT, AMX, AOL, AUY, BIDU, CSCO, CTRP, FEYE, GNRC, HSIC, LO, MET, MOS, NTAP, NVDA, OC, PEP, PNRA, SLF, TRIP, TSLA, TWX, WCG, WFM, Z, ZU MARKET NOTE: The profit taking that we saw on Monday certainly didn't last too long as the bulls try to take over once again today and resume the recent buying spree. There's not much in the way of economic reports coming out until Thursday when we'll see both initial jobless claims and retail sales. Until then, the stock market will be mostly driven by technical indications. In that regard, it's important to note that the 10 year treasury yield ($TNX) has moved back above 2.0%, but will likely see resistance near 2.05%. That could drive traders back to the buy side with respect to treasuries just as equity prices test overhead resistance. Clearly, that could set us up for more whipsaw action and consolidation. The bulls will be looking to breakout, however, with a key driver being the home construction space ($DJUSHB). The long-term ascending triangle breakout from Friday has attracted more buyers to the group and continued strength here would be very welcome by the bulls. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists at this time. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: HSIC - Up today and has been a great performer, but they report their quarterly results on Wednesday. Therefore, WE ARE REMOVING HSIC FROM OUR WATCH LIST. Great trade! RAX - Needs more volume to confirm its potential breakout today. 48.24 is closing price resistance and we opened at 48.10, just beneath that level. So today's intraday move is somewhat suspect given the light volume. A failure on the close would be a signal to capture profits if holding. RHT - Looks decent, but a close above recent resistance from 66-67 would be a very bullish signal. Mid Cap Watch List: TASR - Consolidation continues. VDSI - Back above 20 day EMA, which is nice at least in the short-term. Now it needs to stay there. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: HSIC is being removed as it reports quarterly results tomorrow. There are no other deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com