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April 21, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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Most investors underestimate the importance of planning. Though it ranks at the very top of our list of trading tips, planning isn't a priority for most traders.
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"QUICK LIST"
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Stock 04/21 04/21 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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HUN 35.13 -0.29 33.84 2.47/1.24 2.26
AX 42.37 -0.01 40.69 3.22/1.61 3.52
ARCT 22.59 -1.88 23.7 21.3 2.4/1.2 4.32
ROCK 40.44 -0.14 38.76 3.02/1.51 3.72
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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Stocks were lower on Thursday following remarks from Fed Bank Chairman Jerome Powell hinting at aggressive rate hikes. Mixed economic data included a rebound in leading indicators, an upick in unemployment claims and decelerating manufacturing growth in the Philadelphia region. In equities, Tesla (TSLA $1,009) announced record quarterly earnings, while American Airlines (AAL $20) and United Airlines (UAL $51) presented upbeat guidance. Oil prices and the USD/dollar were both higher, gold and treasuries were lower, raising yields. Apr 20, 2022 Apr 21, 2022
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Dow 35,160.79 249.59 34,792.76 -368.03
Nasdaq 13,453.07 -166.59 13,174.65 -278.41
S&P 500 4,459.45 -2.76 4,393.66 -65.79
NYSE Volume 4.25B 4.58B
NYSE Advancers 2,118 656
NYSE Decliners 1,195 2,659
Nasdaq Volume 4.62B 5.16B
Nasdaq Advancers 2,393 1,068
Nasdaq Decliners 2,386 3,668
New Highs/Lows
04/14 04/15 04/18 04/19 04/20 04/21
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NYSE New Highs 142 0 157 99 172 169
NYSE New Lows 278 0 321 285 97 251
Nasdaq New Highs 96 0 93 89 108 100
Nasdaq New Lows 296 0 513 306 206 485
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TRADER'S TIP:
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TRADER'S TIP: "Know WHY To Buy or Sell" Studies show that most investors buy and sell on emotion instead of reasoning. For example most investors will sell their winning positions to make up for losers, then hold the losers way too long in hopes they will recover. This is the opposite of what should be done, for the winners tend to keep on winning, while losers usually keep losing. The most common management strategy used by successful traders is pretty simple. Get rid of losers quickly, and keep winners profitable with an exit strategy that includes stop orders. It isn't that difficult to understand intellectually how this approach pays off, but sticking with it is too much of an emotional challenge for most people. The solution comes from the discipline gained through repetitive conditioning. "Repetitive conditioning?" That's selling any and all losing positions immediately upon their reaching a predetermined level, and holding any and all winners until they meet the specific sell criteria of your exit strategy. Just another term for "good experience!" **************************
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/ S&P 500 - 4393.66 April 21, 2022 52-Week High: 4818.62 52-Week Low: 4056.88 Daily Trend: UP 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 https://www.prorightline.com/rlch/042122SPX.jpg--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" 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: "What Can I Learn From This Trade?" This is where the rubber meets the road! Although a trade may end when you exit the position that is often when the learning begins. One popular definition of insanity is continuing to act in the same way but expecting different results. A trading journal or diary will help answer the questions, "Now that I see the past with 20/20 vision, what would I have done differently? What did I do right? Did my emotional state of mind affect my success? Did I follow my trading plan? Did I set my stop at reasonable level?" When you review your trades after the fact, it's amazing how easy it is to find a nugget of information that will help you with your next trades. We can't force stocks to do what we want them to, but we can learn to work with what a stock gives us. Moreover, the difference between progress and stagnation is our ability to learn from our experiences. ***********************************
STOCKS COVERED IN THIS ISSUE
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BASIC MATERIALS SECTOR Huntsman Corporation (HUN: Basic Materials/Chemicals) - BEARISH U-TURN. A quick look at the charts for HUN show that despite the upward pressure caused by recent buying, the weekly downtrend is still in place. Thursday's chart shows a potential return to that downtrend is in the works. This Bearish U-Turn set-up offers a potential entry point for a SHORT play. Set your trigger to SELL shares at 33.84, and follow your entry with a trailing stop of 2.47. Tighten the stop to 1.24 after reaching a 2.26 profit. HUN ended the latest session at 35.13. Earnings Report Date: Apr 28, 2022. Beta: 1.15. Market-Cap: 7.536B. Optionable. FINANCIAL SERVICES SECTOR Axos Financial, Inc. (AX: Financial Services/Banks-Regional) - BEARISH U-TURN. Sometimes traders hear about a stock that's in trouble and then short it without any thought to timing the entry. This method often results in less profits even when the trade moves in the desired direction. The Bearish U-Turn setup provides a smoother entry than just jumping in. It also reduces risk by placing both the entry trigger and exit stop near the top of the reversal. We'll use this approach with AX which met our setup requirements on Thursday. The SELL short trigger for this trade is set at 40.69, and the trailing stop is sized at 3.22. Reset the stop to 1.61 upon getting a 3.52 point gain. AX closed Thursday at 42.37. Earnings Report Date: Apr 28, 2022. Beta: 1.41. Market-Cap: 2.521B. Optionable. HEALTHCARE SECTOR Arcturus Therapeutics Holdings Inc. (ARCT: Healthcare/Biotechnology) - SQUEEZE PLAY. Traders are feeling the pressure as ARCT's intra-day price range on Thursday shrunk to the narrowest spread in over a week. The tension between buyers and sellers should provide enough pent-up engergy for a breakout move in the days ahead, so get ready to trade with the new trend. To achieve that, place a BUY entry at 23.7 and a SELL short entry at 21.3. ARCT's price movement will decide which entry is filled. As soon as you're in the trade, enter a 2.4 trailing stop. Tighten it to 1.2 after you get a 4.32 gain. ARCT closed Thursday at 22.59. Earnings Report Date: May 09, 2022. Beta: 2.74. Market-Cap: 595.811M. Optionable. INDUSTRIALS SECTOR Gibraltar Industries, Inc. (ROCK: Industrials/Building Products & Equipment) - BEARISH U-TURN. This short setup turns common stock behavior into profits. Grounded in the tendency for down-trending stocks to bounce briefly and then return to the familiar down-trend, the Bearish U-Turn points traders to weak stocks when conditions are calling for more downward price action. ROCK's behavior on Thursday near moving average support signals a potential SELL short entry at 38.76, followed by a 3.02 trailing stop which can be tightened to 1.51 upon earning 3.72. ROCK closed Thursday at 40.44. Earnings Report Date: May 04, 2022. Beta: 1.07. Market-Cap: 1.326B. 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 ---------------- ------- -------- ------- ------ ------- 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 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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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 To Unsubscribe, send an email to cs@prorightline.com or call 800-737-4518. |