Notes From The Editor

When I talk to other traders, the conversation will often turn to brokerages. It makes sense that there's a lot of emphasis on this area. Who you trade with is one of the few variables that you have complete control over. But this is not a case where one-size-fits-all.

Low commissions and online trading tend to go hand-in-hand. How low?

Well, that depends on who you go with. Rates can run as high as $20 per trade, and as low as $2 per trade. Commission rates are an important consideration; you pay them when you buy and sell, and they can really eat away at your profits over time. So take these rates into account. If you feel like you're paying too much at your current broker, shop around and see if you can't find something better.

That said, commissions aren't the whole story. The advantage of low rates can easily be outweighed by poor execution or shoddy customer service.

Customer service is one of the most important considerations, but it's also hard to gauge. This is where online reviews really come in handy.

Google the broker and see what others are saying. Are their reps rude and uncaring, or do they step up and give you help when you need it?

We've all dealt with poor customer service before, but nothing can match the stress of trying to figure out whether a trade is open or closed after your online system has a problem. Each passing minute can feel like an hour as you watch prices change, not knowing if you're in or out.

Also see what hours your broker's customer service line is open - especially if you plan on doing the occasional overseas or futures trading. Several years ago I jumped in an overnight futures position.

But lo-and-behold, something went wrong with my online trading platform. I called in to my broker and was routed to their Australia office, who in turn routed me to their Hong Kong office. Speaking with someone who had a very thin grasp on the English language, I was finally able to close out my trade. But in the meantime, my position had gone down several hundred dollars.

While swing trading doesn't involve moving in and out of positions overnight, it's always good to have access to another human being when you have questions about your account. And when you do settle on a firm, have their customer service number readily available. Hiccups with your online trading platform can and will happen.

Finding the right brokerage is a broad topic. In the next RightLine Report I'll get into fees, execution speed, and other things to look for when you're comparing brokers.

Here's to profits,

Kent Barton
Senior Analyst

Quick List

    
Stock     04/20     04/20      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

STR       25.40      0.10     25.75                  1.85/0.93      1.62
CORT      22.30      0.19     22.66                  1.31/0.66      1.12
MRUS      20.76     -0.50     21.63     20.04         1.59/0.8      2.52
TGTX      21.39     -0.51     21.97      20.5        1.47/0.74      1.68
FLNC      20.49      0.30     20.79                        2/1      2.94

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.

Market Summary

The main US stock indexes were lower on Thursday after new economic data delivered the market fresh evidence that the economy is slowing. Another sign of a weak economy, the Conference Board reported that its Leading Economic Index (LEI) - a forward-looking measure of economic conditions fell 1.2% in March, placing it at its lowest level since November 2020. In equities, Tesla (TSLA) reported a 24% decrease in quarterly profits, causing the electric car manufacturer's stock to fall by more than 10%. Oil prices, gold and Bitcoin were all ended the session lower.

                        Apr 17, 2023           Apr 18, 2023   
                  --------------------   --------------------
Dow                 33,987.18   100.71     33,976.63   -10.55
Nasdaq              12,157.72    34.26     12,153.41    -4.31
S&P 500              4,151.32    13.68      4,154.87     3.55

NYSE Volume                      3.63B                  3.56B
NYSE Advancers                   1,835                  1,374
NYSE Decliners                   1,161                  1,617

Nasdaq Volume                    4.86B                  4.89B
Nasdaq Advancers                 2,775                  1,981
Nasdaq Decliners                 1,688                  2,483

                                 New Highs/Lows

                   04/11  04/12  04/13  04/14  04/17  04/18
                 --------------------------------------------
NYSE New Highs        48     57     54     46     56     66
NYSE New Lows         20     28     31     40     39     34
Nasdaq New Highs      71     80     86     71     81     74
Nasdaq New Lows      120    192    157    222    170    152
   

TRADER'S TIP: "Changing Your RightLine Subscriber Acct Info"

RightLine Subscribers can easily change their account preferences and other information. Simply go to https://www.rightline.net/preferences/lookup.html.

There are several items you can change in this section. For example, you can choose whether to receive the RightLine Report in html with color and graphics, or just plain text. You can also choose to turn the Split & Buyback email alerts "on" or "off." You can change your password and other contact information too.

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 - 4129.79 April 20, 2023

52-Week High: 4512.94
52-Week Low: 3491.58
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 2871.16
Resistance 2: 2816.26
Resistance 1: 1408.13
Pivot: 2761.35
Support 1: 1353.22
Support 2: 2706.44
Support 3: 2651.53

NASDAQ Composite - 12059.56 April 20, 2023

52-Week High: 13710.70
52-Week Low: 10088.83
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 8552.75
Resistance 2: 8319.27
Resistance 1: 4159.63
Pivot: 8085.79
Support 1: 3926.15
Support 2: 7852.31
Support 3: 7618.83
        
Dow Industrials - 33786.62 April 20, 2023

52-Week High: 35492.22
52-Week Low: 28660.94
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 23247.21
Resistance 2: 22906.33
Resistance 1: 11453.16
Pivot: 22565.45
Support 1: 11112.28
Support 2: 22224.57
Support 3: 21883.69
 

Market Calendar

ECONOMIC REPORTS AND EVENTS (all times are Eastern):    

FRIDAY, APRIL 21					
9:45 am	S&P flash U.S. services PMI	April		
9.45 am	S&P flash U.S. manufacturing PMI	April		
4:35 pm	Fed Gov Lisa Cook speaks
For a chart of typical Up or Down market reactions to specific major US economic reports 
go to:  Economic Indicator Effects

TRADER'S TIP: "The Buy and Hold Myth"

Most long-term investors like to believe they are unaffected by short- term price fluctuations in the market. However, since most buy-and- hold advocates have no Exit Plan or Risk Control Strategy to protect capital and profits, the emotions of fear and pain eventually come to bear, often forcing unprepared investors to sell under the worst conditions.

Stocks Covered in This Issue

ENERGY SECTOR

Sitio Royalties Corp. (STR: Energy/Oil & Gas E&P) - BULLISH BOUNCE. STR's positive weekly uptrend is still intact despite recent selling that has driven share prices lower. Price action on Friday shows that traders are aware of the moving average support zone now in play, and they are ready to consider buying again. A shift up from this point will attract even more buyers. The new buying should move STR back in step with the bullish weekly trend, so our BUY entry trigger is set at 25.75. Once you hold a position, trail a stop of 1.85. Tighten it to 0.93 on a 1.62 gain. STR closed at 25.40 on Friday. Earnings Report Date: May 08, 2023. Beta: N/A. Market-Cap: 3.946B. Optionable.

HEALTHCARE SECTOR

Corcept Therapeutics Incorporated (CORT: Healthcare/Biotechnology) - BULLISH BOUNCE. Positive price behavior near moving average support on Friday qualifies CORT for a Bullish Bounce setup. After several sessions of declining prices, CORT should soon begin trading in step with its established weekly uptrend. Tell your broker to BUY shares if CORT moves up to our entry trigger set at 22.66. You can also enter a 1.31 trailing stop, to be replaced with a 0.66 trailing stop when you obtain a 1.12 profit. CORT closed Friday at 22.30. Earnings Report Date: May 03, 2023. Beta: 0.50. Market-Cap: 2.406B. Optionable.

Merus N.V. (MRUS: Healthcare/Biotechnology) - SQUEEZE PLAY. Friday's narrow price range has created a potentially profitable setup in MRUS, as sellers and buyers find themselves in a near tie for control of price direction. The next short-term trend could go either way, so prepare for a move out of the draw within the next day or so. Set a BUY entry at 21.63 and a SELL short entry at 20.04. Let MRUS's price action determine your long or short entry. Once the order is filled, place a 1.59 trailing stop, and tighten it to 0.8 upon getting a 2.52 gain. MRUS closed Friday at 20.76. Earnings Report Date: May 08, 2023. Beta: 0.75. Market-Cap: 961.547M. Optionable.

TG Therapeutics, Inc. (TGTX: Healthcare/Biotechnology) - SQUEEZE PLAY. A look at TGTX's daily chart shows what a price squeeze is all about. The constricted high-low daily trading range has produced a setup similar to a tightly coiled spring. Expect price to move sharply soon, with the direction yet to be determined. Let the upcoming market action resolve whether you will buy shares or sell short. To capture a move either way, place a BUY trigger at 21.97 and a SELL short trigger at 20.5. Once TGTX shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.47 and tighten to 0.74 on a 1.68 gain. TGTX closed Friday at 21.39. Earnings Report Date: May 08, 2023. Beta: 2.06. Market-Cap: 3.131B. Optionable.

UTILITIES SECTOR

Fluence Energy, Inc. (FLNC: Utilities/Utilities-Renewable) - BULLISH BOUNCE. Another bullish bouncer, FLNC appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Friday's positive price action near Moving Average support says it's time to BUY shares if FLNC reaches our entry trigger set at 20.79. Also place a 2 trailing stop which can be narrowed to 1 when you reach a 2.94 profit. FLNC closed Friday at 20.49. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 3.581B. 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.

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  
---------------- -------     --------    -------     ------  -------   

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.      

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.

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