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April 11, 2024 - The RightLine Report
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NOTES FROM THE EDITOR
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Maintaining perspective isn't always easy for traders. With every session bringing new developments to the market, it's important to focus on day-to-day changes. This is especially true of setups with a short-term timeframe.
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"QUICK LIST"
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Stock 04/11 04/11 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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MTUS 22.11 0.13 22.44 1.32/0.66 1.2
PNTG 20.35 0.14 20.74 1.38/0.69 1.2
TRML 20.10 0.19 20.77 19.09 1.68/0.84 6.78
MXL 22.42 0.28 22.84 21.25 1.59/0.8 1.52
The "Quick List" provides a brief summary of each stock write-up and should be taken in the context of the related write-up presented in the "Stocks Covered in This Issue" section of this Report. Be sure to read "How To Use The RightLine Quick List" at https://prorightline.com/index.php/rightline-report-quick-list/. In addition,always use the RightLine Risk Calculator before entering any position. For access to the Risk Calculator, go to https://prorightline.com/index.php/risk-calculator/. To learn more about controlling risk go to the RightLine Risk Control System at https://prorightline.com/index.php/rightline-risk-control-system/ For a glossary of terms unique to The RightLine Report go to: https://prorightline.com/index.php/glossary/ Questions? Send us an email using our contact form at: https://prorightline.com/index.php/contact-us/
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MARKET SUMMARY
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Following a nearly 1% decline in the S&P 500 due to higher-than-anticipated consumer price index (CPI) inflation on Wednesday, markets rebounded on Thursday as producer price index (PPI) inflation for March came in slightly below expectations. Headline PPI stood at 2.1% year-over-year, falling short of forecasts of 2.2%, although still higher than last month's 1.6% reading. The Nasdaq, driven by the tech sector, outperformed both the S&P 500 and Dow Jones. We've observed that the prevailing "higher for longer" interest-rate environment has exerted pressure on rate-sensitive segments such as real estate, utilities, and small-cap stocks. Conversely, sectors with substantial balance sheets and ample cash reserves, notably mega-cap technology, have shown more resilience amidst rising rates. Treasury yields continued their ascent following Wednesday's sharp increase, marking the largest one-day yield move of the year. On Thursday, the 10-year Treasury yield climbed by 0.02% to 4.55%, reaching its peak for the year. This shift aligns with the revised expectation for Fed rate cuts, with markets now anticipating only two rate reductions starting at the September meeting. We believe the Fed will await further evidence of easing inflation trends before considering rate cuts, especially given the forthcoming CPI inflation reports leading up to the September 18 meeting, which should provide ample data to assess the trajectory of inflation. Apr 10, 2024 Apr 11, 2024
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Dow 38,461.51 -422.16 38,459.08 -2.43
Nasdaq 16,170.36 -136.28 16,442.20 271.84
S&P 500 5,160.64 -49.27 5,199.06 38.42
NYSE Volume 3.85B 3.52B
NYSE Advancers 414 1,415
NYSE Decliners 2,434 1,379
Nasdaq Volume 5.32B 4.73B
Nasdaq Advancers 931 2,321
Nasdaq Decliners 3,360 1,885
New Highs/Lows
04/04 04/05 04/08 04/09 04/10 04/11
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NYSE New Highs 224 102 131 105 35 47
NYSE New Lows 16 31 16 8 46 28
Nasdaq New Highs 170 78 112 98 36 61
Nasdaq New Lows 100 143 89 80 187 141
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TRADER'S TIP:
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TRADER'S TIP: "Under and Over" While it's easy to under-estimate how long it takes to learn how to trade well, it's almost impossible to OVER-estimate the value of the lessons learned along the way. Remember that there's no such thing as a bad experience - so long as you learn from it and assign it a high value. **************************
THE TECHNICAL ANALYST
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This section contains important technical data for the three major market averages -- the S&P 500, the Nasdaq Comp Index, and the Dow Industrial Average. For guidance on how to use this information, go to: https://prorightline.com/index.php/technical-analyst-section-rightline-report/ https://www.prorightline.com/rlch/041124SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, APRIL 8 1 pm Chicago Fed President Austan Goolsbee radio interview None scheduled TUESDAY, APRIL 9 6:00 am NFIB optimism index March WEDNESDAY, APRIL 10 8:30 am Consumer price index March 8:30 am Core CPI March 8:30 am CPI year over year 8:30 am Core CPI year over year 8:45 am Fed Gov. Michelle Bowman speaks 10:00 am Wholesale inventories March 12:45 pm Chicago Fed President Austan Goolsbee speaks 2:00 pm Minutes of Fed's March FOMC meeting 2:00 pm Monthly U.S. federal budget March THURSDAY, APRIL 11 8:30 am Initial jobless claims 8:30 am Producer price index March 8:30 am Core PPI March 8:30 am PPI year over year 8:30 am Core PPI year over year 8:45 am Fed Gov. Michelle Bowman speaks 12:00 pm Boston Fed President Susan Collins speaks 12:45 pm Chicago Fed President Austan Goolsbee speaks 1:30 pm Atlanta Fed President Raphael Bostic speaks FRIDAY, APRIL 12 8:30 am Import price index March 8:30 am Import price index minus fuel March 10:00 am Consumer sentiment (prelim) April 2:30 pm Atlanta Fed President Raphael Bostic speaks 3:30 pm San Francisco Fed President Mary Daly speaks For a chart of typical Up or Down market reactions to specific major US economic reports, go to "Economic Indicator Effects" at this link: https://prorightline.com/index.php/economic-indicator-effects/
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TRADER'S TIP:
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TRADER'S TIP: "Concentrate on Execution" "The last thing you should have to worry about during market hours is where the market is going, and whether to be long or short. Your strategy will tell you all of this. You should not be concerned about the news, or even if you are making or losing money. You should not be concerned with analyzing the market, always reserve this for when the market is closed. The only thing you should be doing during market hours is concentrating on effectively executing your strategy. If you can't execute your strategy effectively, there really is no point in trading. There are two sides to trading, strategy development and trading execution. During market hours is when you should concentrate on execution and nothing else." ~ Charlie Wright, Veteran Trader and Hedge Fund Manager ***********************************
STOCKS COVERED IN THIS ISSUE
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BASIC MATERIALS SECTOR Metallus Inc. (MTUS: Basic Materials/Steel) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, MTUS fits the bill. Shares have been in retreat-mode lately, but now this stock is in the process of bouncing from support. Currently priced at 22.11, plan to buy shares at 22.44 and use a 1.32 trailing stop. Tighten the stop to 0.66 on a 1.2 gain. Earnings Report Date: May 02, 2024. Beta: 1.52. Market-Cap: 970.415M. Optionable. HEALTHCARE SECTOR The Pennant Group, Inc. (PNTG: Healthcare/Medical Care Facilities) - BULLISH BOUNCE. Up-trending stocks like PNTG have a tendency to bounce their way skyward rather than travel higher in a straight line. After touching down to a moving average support level on Thursday, PNTG is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 20.74 if positive price action occurs. As always, follow your entry with a trailing stop. A 1.38 trailer should work well with PNTG. Tighten it to 0.69 on a 1.2 gainer. Earnings Report Date: May 02, 2024. Beta: 2.06. Market-Cap: 610.756M. Optionable. Tourmaline Bio, Inc. (TRML: Healthcare/Biotechnology) - SQUEEZE PLAY. Sometimes when Bulls and Bears face off in the market arena for a typical day-long battle, there is no clear winner. This is evident when the daily price range contracts to an unusually narrow state. TRML found itself in this condition on Thursday when neither buyers or sellers were able to push ahead. This setup provides traders a chance to hop on board the next breakout - whether it's to the upside or down - with little risk of loss. To do this place a BUY order at 20.77 and a SELL short trigger at 19.09. When TRML moves outside of Thursday's range, one of the orders will be filled. Once you hold a position of shares, cancel the unfilled order and place a 1.68 trailing stop. After you've got a 6.78 profit, tighten the stop to 0.84. TRML closed at 20.10 on Thursday. Earnings Report Date: May 13, 2024. Beta: N/A. Market-Cap: 515.495M. Optionable. TECHNOLOGY SECTOR MaxLinear, Inc. (MXL: Technology/Semiconductors) - SQUEEZE PLAY. MXL shareholders know what it feels like to be squeezed. Thursday's slim price range reveals uncertainty on both sides of the table, a situation which often resolves itself by either Bears or Bulls quickly gaining a clear advantage. The question is "who will win?" Near-term market action tell us whether we should sell short or we should buy shares instead. MXL closed Thursday at 22.42. The plan is to enter in the right direction by placing a BUY trigger at 22.84 and a SELL short trigger at 21.25. Once MXL establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.59. After you've collected a 1.52 profit, tighten the stop to 0.8. Earnings Report Date: Apr 24, 2024. Beta: 1.99. Market-Cap: 1.837B. Optionable. IMPORTANT: Before entering any recommended positions, always use the RightLine "Risk Control System" to determine the level of acceptable risk and the maximum number of shares to buy. Link: https://prorightline.com/index.php/rightline-risk-control-system/ Use "Gap Adjusted Entries" to reset the Entry Price for stocks that gap beyond recommended entry levels. Link: https://prorightline.com/index.php/gap-adjusted-entries-increase-profits/ ***********************************
STOCK SPLIT SUMMARY
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Below are the stocks that have announced splits and have recently executed or will execute soon. There is generally a return to normal price behavior in the weeks following a split announcement in what we call a "Dormancy Phase." As the stock nears its split execution date it often moves into the "Pre-Split Run" stage where quick and sometimes dramatic gains can occur. Announce Eff. Split Company Name (Symbol) Date Date Ratio Options ---------------- ------- -------- ------- ------ ------- NOTE: The number of stock split announcments goes up during Bull markets, and goes down during Bear market cycles. There are currently no upcoming stock splits that meet RightLine's proprietary criteria for split ratio, trading volume and price action. For a closer look at the different stages of a Stock Split go to: https://prorightline.com/index.php/trading-stock-splits-stages/ ======================================================================
Best of luck and have a Great Week!
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The RightLine Report is an information service for investors and traders. It is not a solicitation nor a recommendation or offer to buy or sell securities. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. The publishers of The RightLine Report are not brokers or financial advisors, and are not acting in any way to influence the purchase or sale of any security. Stock picks, entry points and exit points should be considered an information resource to assist the trader in developing a trading plan and it is the sole responsibility of the reader to conduct his or her own due diligence before executing a trade. Trading securities should be considered speculative with a high degree of volatility and risk. The publishers of The RightLine Report recommend that anyone trading securities should do so with caution, exercise prudent trading discipline and have a personal risk management strategy in place before doing so. It is possible at this or some subsequent date, the publishers and staff of The Pro Right Line Corp. may own, buy or sell securities presented. The Pro Right Line Corp. is not a financial advisory service. Its publishers, owners or investors, are not liable for any losses or damages, monetary or otherwise, that result from the content of The RightLine Report. Past RightLine Report performance may not be indicative of future performance. All subscriptions and/or use of the RightLine.net website are subject to RightLine's "Terms of Use" and "Subscriber Terms & Conditions" which are posted at www.rightline.net. Any REDISTRIBUTION of the above information, without The RightLine's written consent, is STRICTLY PROHIBITED. Copyright / The Pro Right Line Corporation - All Rights Reserved To Unsubscribe, send an email to cs@prorightline.com or call 1-312-248-4241. |