EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Wednesday: ABX, CTRP, DUK, EOG, FLR, GRMN, HUN, MAR, PCYC, SNPS, SUN, SWY, WMB, XRAY Thursday: AYR, BRCD, CYH, DISCA, DTV, EQIX, FCN, GG, INTU, JWN, MRVL, NEM, PCLN, PSA, WMT MARKET NOTE: The stock market typically performs poorly this week from an historical perspective. We're also overbought with respect to stochastics and 60 minute negative divergences are indicative of slowing short-term momentum to the upside. Throw in mild max pain issues that tell us market makers would like lower prices too. But while these signal a possible pause in the advance, traders have recently turned to "risk on" mode during the latest market breakout to all-time highs and this suggests the rally is sustainable. Therefore, we like entry into healthy stocks if we do see a pullback this week. ADDITIONS TO WATCH LISTS: We are adding five stocks to our Watch List as follows: Large Cap Watch List: AN - $7.0 billion market cap, initial entry at current price (62.18) with second entry at 60.00. HAR - $9.3 billion market cap, initial entry at current price (135.76) with second entry at 125.00. Mid Cap Watch List: INFN - $2.1 billion market cap, initial entry at current price (17.11) with second entry at 16.00. RYL - $2.1 billion market cap, initial entry at current price (44.74) with second entry at 42.00. KLIC - $1.2 billion market cap, initial entry at current price (15.88) with second entry at 15.10. More details will be provided on the website this evening, including annotated charts, closing stops and potential target prices. 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 - Patience now paying off. ADBE recently broke out and it's continuing its move higher. BA - Massive uptrend here remains intact, but BA is overbought on both RSI and stochastics. Difficult to buy or add given current overbought status, but technically very healthy. MCO - In a bull flag formation, looks to move higher after current period of consolidation. RAX - Continues to push higher on excellent volume today, but could be leaving long tail to the top. On heavy volume, this could be the sign of a short-term top. RHT - 60 minute negative divergence could make it difficult for a further rise near-term. Mid Cap Watch List: SYNA - Testing recent highs near 80. Could use more volume to confirm next breakout. TASR - Continuing consolidation bringing daily MACD closer and closer to centerline support. This type of basing is normally quite bullish. We'll see. 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