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April 25, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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Let's continue our recent discussion about brokerages. We're doing this from a swing-trader perspective, although several of these factors apply to anyone trading stocks online.
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"QUICK LIST"
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Stock 04/25 04/25 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
AEM 56.32 0.16 57.29 3.51/1.76 2.94
MANU 21.00 -0.53 21.86 20.33 1.53/0.77 2.36
MRUS 20.19 -0.66 21.45 19.46 1.99/1 2.32
ZNTL 21.79 0.29 22.3 20.84 1.46/0.73 2.14
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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US stocks fell hard on Tuesday following disappointing earnings reports from several companies, as the tech-centric Nasdaq Composite and the broader S&P 500 closed near their lowest levels in a month. Now that first quarter earnings season is underway, it appears the market is in a 'sell the news' mood, with even shares of companies that have topped expectations are being sold. Transportation stocks had a togh session after United Parcel Service(UPS) shares fell 10% after the delivery company failed to meet analysts' profit forecasts.In economic news, Consumer Confidence is down more than expected in April, as volatility expectations measured by the CBOE Volatility Index (VIX) have surged to a one-month high. Oil and the yield on a 10-year US treasury bond were lower, gold and Bitcoin moved higher. Apr 24, 2023 Apr 25, 2023
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Dow 33,875.40 66.44 33,530.83 -344.57
Nasdaq 12,037.20 -35.25 11,799.16 -238.05
S&P 500 4,137.04 3.52 4,071.63 -65.41
NYSE Volume 3.3B 3.99B
NYSE Advancers 1,635 497
NYSE Decliners 1,331 2,538
Nasdaq Volume 4.86B 4.82B
Nasdaq Advancers 1,829 998
Nasdaq Decliners 2,601 3,461
New Highs/Lows
04/18 04/19 04/20 04/21 04/24 04/25
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NYSE New Highs 66 54 70 53 53 43
NYSE New Lows 34 33 34 39 40 103
Nasdaq New Highs 74 65 58 68 79 39
Nasdaq New Lows 152 140 149 201 211 385
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TRADER'S TIP:
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TRADER'S TIP: "Choose Courage" "Being a successful trader also takes courage; the courage to try, the courage to fail, the courage to succeed, and the courage to keep on going when the going gets tough." ~ Michael Marcus **************************
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 - 4071.63 April 25, 2023 52-Week High: 4325.28 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 4250.19 Resistance 2: 4194.57 Resistance 1: 4164.04 Pivot: 4138.95 Support 1: 4108.42 Support 2: 4083.33 Support 3: 4027.71 https://www.prorightline.com/rlch/042523SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Wednesday, April 26, 2023: 26-Apr 8:30 am Durable-goods orders 26-Apr 8:30 am Durable-goods minus transportation 26-Apr 8:30 am Advanced U.S. trade balance in goods 26-Apr 8:30 am Advanced retail inventories 26-Apr 8:30 am Advanced wholesale inventories 26-Apr THURSDAY, APRIL 27 Thursday, April 27, 2023: 27-Apr 8:30 am GDP 27-Apr 8:30 am Initial jobless claims 27-Apr 8:30 am Continuing jobless claims 27-Apr 10:00 am Pending home sales 27-Apr FRIDAY, APRIL 28 Friday, April 28, 2023: 28-Apr 8:30 am Employment cost index 28-Apr 8:30 am Personal income (nominal) 28-Apr 8:30 am Personal spending (nominal) 28-Apr 8:30 am PCE index 28-Apr 8:30 am Core PCE index 28-Apr 8:30 am PCE (year-over-year) 28-Apr 8:30 am Core PCE (year-over-year) 28-Apr 9:45 am Chicago Business Barometer 28-Apr 10 am Consumer sentiment (final) 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: "Nay-Sayers and Hay-Makers" It seems that practically every market turn comes draped in commentary and analysis from all angles of pundits and prophets. For every pullback there's the requisite reasoning for a "golden buying opportunity," which comes equally weighted with the seemingly sound logic of numerous warning signs signaling impending doom. Enough already! Once in a while try turning down the volume and simply observing the charts and figures that come across without the rhetoric. It can be so much more informative. ***********************************
STOCKS COVERED IN THIS ISSUE
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BASIC MATERIALS SECTOR Agnico Eagle Mines Limited (AEM: Basic Materials/Gold) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, AEM 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 56.32, plan to buy shares at 57.29 and use a 3.51 trailing stop. Tighten the stop to 1.76 on a 2.94 gain. Earnings Report Date: Apr 27, 2023. Beta: 0.80. Market-Cap: 25.795B. Optionable. COMMUNICATION SERVICES SECTOR Manchester United plc (MANU: Communication Services/Entertainment) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in MANU's narrowest trading range of the past seven sessions. With neither group able to take complete control on Tuesday, the stock's short term destiny is up for grabs. You can capitalize on this unusually tight condition by placing both a BUY order at 21.86 and a SELL order at 20.33. Regardless of which order is triggered, cancel the other one and follow your entry with a 1.53 trailing stop. Tighten the stop to 0.77 once you have a 2.36 gain. MANU closed Tuesday at 21.00. Earnings Report Date: May 24, 2023. Beta: 0.68. Market-Cap: 3.509B. Optionable. HEALTHCARE SECTOR Merus N.V. (MRUS: Healthcare/Biotechnology) - SQUEEZE PLAY. One interesting trait of price volatility is that it cycles back and forth through periods of expansion and contraction. Stocks that have recently seen their daily price range shift from an average or wide range to an extremely contracted state are ideal candidates for expansive price moves. In many cases the next move is relatively fast and covers a sizable amount of territory. To take advantage of these trades we use both a BUY and a SELL entry. This allows us to enter in whichever direction the breakout takes. In MRUS's case we will enter a BUY should it reach the 21.45 level, or a SELL short trade if it drops to 19.46. As usual a trailing stop is essential, 1.99 which should be tightened to 1 on a 2.32 gain. MRUS closed Tuesday at 20.19. Earnings Report Date: May 08, 2023. Beta: 0.75. Market-Cap: 935.146M. Optionable. Zentalis Pharmaceuticals, Inc. (ZNTL: Healthcare/Biotechnology) - SQUEEZE PLAY. In certain stocks a tightly constricted price range is a sign that neither bulls nor bears are confident of winning in the near term. This often means that the side that gives up first causes a quick move in the opposite direction. In these fear dominated skirmishes, opposing traders always benefit from the retreat. In the Squeeze Play setup you can actually play both sides of the inevitable surge. ZNTL traders reached this state of stand-off on Tuesday with the tightest range of the past seven days. You can take advantage of their efforts by placing a low risk BUY trigger at 22.3 and a SELL short trigger at 20.84. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.46 which can be tightened to 0.73 on a 2.14 gain. ZNTL closed Tuesday at 21.79. Earnings Report Date: May 03, 2023. Beta: 1.83. Market-Cap: 1.295B. 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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