April 19, 2022 - The RightLine Report
Notes From The Editor
The Myth: "You have to be very smart to make money trading stocks online."
The Truth: A high IQ is not required for successful online stock trading. In fact, being too "smart" can be a liability.
Why? Because most "smart" people rely heavily on their intelligence. Since they are logical thinkers, they have a hard time accepting the often illogical and irrational actions of the stock market. As a result they tend to overcomplicate matters. They try to out-think the market and attempt to predict what it will do.
This type of over-thinking and relying on predictions just doesn't work. Stock market behavior is a result of human behavior. No one can be certain what will happen in the future. Successful traders don't base their actions on predictions. They anticipate what is likely to happen, and then make buy and sell decisions based on what actually does happen.
Trading isn't rocket science. Though the skills needed to be successful take time to acquire, you don't need a high IQ to trade intelligently. On the other hand, persistence and discipline are necessary. Fortunately these two qualities are available to anyone who really wants them.
Remember, when it comes to price movement a stock can only do three things. It will go up, go down, or go sideways. Plan ahead for each of these possibilities and you can respond intelligently to whatever happens - no matter how "smart" you are!
- Thomas Sutton, Editor
Stocks Covered Today Stock Splits
Quick List
Stock 04/19 04/19 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
SKM 27.12 0.48 27.63 1.68/0.84 0.74
RCM 27.09 0.73 27.56 2.15/1.08 1.8
RVMD 23.93 0.18 24.52 22.81 1.71/0.86 3.08
EVBG 49.87 1.28 51.47 4.81/2.41 5.24
TENB 61.69 3.16 62.73 6.27/3.14 4.94
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" and always use the RightLine Risk Control Calculator before entering any position.
For more on controlling risk go to the RightLine Risk Control System
For a glossary of terms unique to The RightLine Report go to: Glossary
Questions? Send us an email using our Contact Form.
Stocks Covered Today Stock Splits
Market Summary
The major US stock averages were solidly higher on Tuesday despite more hawkish comments from Federal Reserve Bank of St. Louis President James Bullard. Economic headlines featured a suprising increase in March building permits and housing starts. In equities news, Johnson & Johnson (JNJ $183) reported excellent earnings results for the quarter, while Lockheed Martin (LMT $460) and Travelers Companies (TRV $176) came up short on their revenue numbers. The USD/dollar advanced upward in value, as oil prices and gold dipped lower. Treasuries were also lower, rasing yields across the curve.
Apr 18, 2022 Apr 19, 2022
-------------------- --------------------
Dow 34,411.69 -39.54 34,911.20 499.51
Nasdaq 13,332.36 -18.72 13,619.66 287.30
S&P 500 4,391.69 -0.90 4,462.21 70.52
NYSE Volume 3.87B 4.06B
NYSE Advancers 1,256 2,269
NYSE Decliners 2,073 1,059
Nasdaq Volume 4.3B 4.5B
Nasdaq Advancers 1,582 3,344
Nasdaq Decliners 3,204 1,336
New Highs/Lows
04/12 04/13 04/14 04/15 04/18 04/19
--------------------------------------------
NYSE New Highs 90 110 142 0 157 99
NYSE New Lows 276 241 278 0 321 285
Nasdaq New Highs 72 87 96 0 93 89
Nasdaq New Lows 289 218 296 0 513 306
Stocks Covered Today Stock Splits
TRADER'S TIP: "Making Decisions Builds Confidence"
Each time we enter or exit a trade we make a decision. Every decision we make causes us to grow - IF we give our experiences the value they deserve. However, if we short-change ourselves for not always making "perfect" choices and view our experiences as "mistakes" our confidence will go down instead of up. Just remember that trading conditions are rarely optimum, and we're always making decisions under less than ideal circumstances. Give yourself a break, knowing that only YOU can set the proper value for each experience you have. Be sure you make the right choice. Build your confidence and never value any trade or other experience as worthless.
The Technical Analyst
For help with this chart, be sure to read "Understanding The Importance Of Support And Resistance"
and "Improve Your Trading With Moving Averages".
S&P 500 - 4462.21 April 19, 2022
52-Week High: 4818.62
52-Week Low: 4056.88
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 4594.27
Resistance 2: 4504.61
Resistance 1: 4448.56
Pivot: 4414.95
Support 1: 4358.90
Support 2: 4325.29
Support 3: 4235.63
NASDAQ Composite - 13619.66 April 19, 2022
52-Week High: 16212.23
52-Week Low: 12555.35
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 14188.01
Resistance 2: 13819.80
Resistance 1: 13585.44
Pivot: 13451.59
Support 1: 13217.23
Support 2: 13083.38
Support 3: 12715.17
Dow Industrials - 34911.20 April 19, 2022
52-Week High: 36952.65
52-Week Low: 32272.64
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 36053.67
Resistance 2: 35267.36
Resistance 1: 34859.28
Pivot: 34481.04
Support 1: 34072.97
Support 2: 33694.73
Support 3: 32908.42
Stocks Covered Today Stock Splits
Market Calendar
ECONOMIC REPORTS AND EVENTS (all times are Eastern): Wednesday, April 20, 2022: 20-Apr 10 am Existing home sales (SAAR) 20-Apr 2 pm Federal Reserve releases Beige Book Thursday, April 21, 2022: 21-Apr 8:30 am Initial jobless claims 21-Apr 8:30 am Continuing jobless claims 21-Apr 10 am Leading economic indicators Friday, April 22, 2022: 22-Apr 9:45 am S&P (Markit) manufacturing PMI 22-Apr 9:45 am S&P (Markit) services PMI For a chart of typical Up or Down market reactions to specific major US economic reports go to: Economic Indicator Effects
Stocks Covered Today Stock Splits
TRADER'S TIP: "Price Action Near Support And Resistance"
It pays to keep an eye on support and resitance lines. One of the best low-risk buy signals takes place when price dips below a significant support line, then comes back up and closes above it. In the same fashion, an excellent shorting opportunity is provided when price rises marginally above a clear resistance line, then reverses to close below it.
Stocks Covered in This Issue
COMMUNICATION SERVICES SECTOR
SK Telecom Co.,Ltd (SKM: Communication Services/Telecom Services) - BULLISH BOUNCE. Some people hear of a stock that's performing nicely and then buy it without any regard for timing the entry. This approach usually leaves money on the table, money that could just as well be added to profits. The Bullish Bounce setup provides a well timed entry and reduces exposure to risk by placing both the entry trigger and exit stop near the bottom of the bounce. We have an opportunity to use this approach with SKM which met our setup criteria on Tuesday. The BUY trigger for this trade is at 27.63, and the trailing stop is sized at 1.68. Resize the stop to 0.84 upon collecting a 0.74 point gain. SKM closed Tuesday at 27.12. Earnings Report Date: N/A. Beta: 0.73. Market-Cap: 10.783B. Optionable.
HEALTHCARE SECTOR
R1 RCM Inc. (RCM: Healthcare/Health Information Services) - BULLISH BOUNCE. Everyone familiar with price charts knows that a stock tends to bounce its way higher rather than move in a straight line. The lower levels of these short-term rebounds offer a safe and often early entry into stocks that are in the process of establishing longer-term uptrends. RCM's reaction to support on Tuesday created a Bullish Bounce setup with a BUY entry trigger at 27.56. Use a 2.15 trailing stop, which should work well with RCM's typical daily range. Tighten it to 1.08 on a 1.8 profit. RCM closed at 27.09 on Tuesday. Earnings Report Date: May 02, 2022. Beta: 0.76. Market-Cap: 7.538B. Optionable.
Revolution Medicines, Inc. (RVMD: Healthcare/Biotechnology) - SQUEEZE PLAY. RVMD is stuck in a Bull/Bear deadlock. Fortunately for traders this impasse should be resolved soon, with one side or the other taking control. We want to be positioned for a potential quick move up or down, so get ready to catch this train with a BUY entry at 24.52 and a SELL short entry at 22.81. Once your trade is filled, enter a 1.71 trailing stop. Tighten it to 0.86 after a 3.08 gain. RVMD closed on Tuesday at 23.93. Earnings Report Date: May 09, 2022. Beta: 2.00. Market-Cap: 1.775B. Optionable.
TECHNOLOGY SECTOR
Everbridge, Inc. (EVBG: Technology/Software-Application) - BULLISH BOUNCE. Entering a position in the early stages of a bounce is great way to get on board an up-trending stock. The "Bullish Bounce" setup identifies probable candidates by evaluating the trading action that takes place near support levels. EVBG's behavior on Tuesday could very well be a sign that a new bounce is underway. Place a BUY trigger at 51.47. In the event your trigger is met, also place a 4.81 trailing stop which can be trimmed down to 2.41 when you have a 5.24 profit. EVBG closed Tuesday at 49.87. Earnings Report Date: May 09, 2022. Beta: 0.86. Market-Cap: 1.97B. Optionable.
Tenable Holdings, Inc. (TENB: Technology/Software-Infrastructure) - BULLISH BOUNCE. Another bullish bouncer, TENB appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Tuesday's positive price action near Moving Average support says it's time to BUY shares if TENB reaches our entry trigger set at 62.73. Also place a 6.27 trailing stop which can be narrowed to 3.14 when you reach a 4.94 profit. TENB closed Tuesday at 61.69. Earnings Report Date: Apr 26, 2022. Beta: 1.60. Market-Cap: 6.804B. Optionable.
IMPORTANT: Before entering any positions, always use the Risk Control System to determine the level of acceptable risk and the maximum number of shares to buy. Use Gap Adjusted Entries to reset the Entry Price for stocks that gap beyond recommended entry levels.
Stocks Covered Today Stock Splits
Stock Splits
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 (Effective 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
---------------- ------- -------- ------- ------ -------
ACM Research ACMR 3/4/2022 3/24/2022 3-for-1 Yes
PAM Transport PTSI 3/9/2022 3/30/2022 2-for-1 Yes
Amazon AMZN 3/9/2022 6/6/2022 20-for-1 Yes
Split details are also available online at the RightLine Online Stock Split Calendar. For a detailed look at the different stages of a Stock Split, Click Here.
A simple yet powerful tool, the Risk Control Calculator helps you manage risk by recommending a maximum number of shares to purchase. Available in the RightLine Member's Area.
Disclaimer
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
Click Here To Unsubscribe