April 25, 2024 - The RightLine Report 

 
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                      NOTES FROM THE EDITOR
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Trading successfully often means going against our desire for a more bullish environment. When you think about it, trading is very much a cerebral activity. In order to do it effectively, we have to resist our animal instincts on a regular basis. Arrggh!

This is especially true on an emotional level. Since most investors' actions are emotional - yet unsuccessful - we have to take a different approach than the rest of the crowd.

Instead of raging against a market that doesn't do our bidding, we adapt to it. This involves more than just planning to use a method that brings some structure to our intentions. We also have to follow through and pull the trigger on each trade. But first we have to deal with the powerful emotional forces that can get in the way.

Trading requires us to overcome psychological barriers on a regular basis. Fear thrives in the market, so we have to remember that it's normal to sense it. Negative feelings can't be entirely eliminated from the trading environment, nor do they have to be. Remembering this lets us manage fear based emotions effectively.

Excessive hope - wishful thinking - can be a challenge too. It often causes traders to hold on to positions much longer than they should. On the other hand, a carefully prepared exit strategy can keep a trade open long enough to develop into a winner, even when fear and doubt are shouting "get out early!"

Confidence is an extremely powerful component of any winning strategy. Though it has a magical effect, it isn't magic. It is a natural byproduct of understanding the principles behind your trading methods, and routinely putting them into action. Traders who do understand and believe in what they are doing are unstoppable.

The temptation to quit can be overcome by choosing another frame of mind. Giving up insures failure, while persistence insures solution. Realizing that every action we take is rooted in attitude motivates us to select our points of view wisely.

When feeling hesitant to make choices, I always remember the old saying, "Good judgment comes from experience, and experience comes from bad judgment." With this in mind, let's all do our best to trade our best. And when we don't, we can still make the best of it.

Trade well!

~ Thomas Sutton, Editor 

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

CENX      17.61      0.22     17.97                  1.55/0.78      1.72
PPC       35.88     -0.12     36.38                  2.16/1.08      1.72
AA        35.94     -0.14     36.53                  2.81/1.41      1.72
HBB       21.21     -0.63     21.83     20.13         1.7/0.85      1.72
BYON      21.22     -1.13     22.06     20.31        1.75/0.88      1.72


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 closed lower on Thursday following a disappointing first-quarter GDP report and higher-than-anticipated prices. Real GDP expanded at a 1.6% annualized rate in the first quarter, falling short of expectations, while the GDP Chain Price Index surged at a 3.1% annualized rate, surpassing forecasts. As a result, equity markets ended in the red, while bond yields climbed, with the 10-year Treasury yield hovering around 4.70%. Commodity-sensitive sectors like energy and materials led the losses in the S&P 500.

On the corporate front, Meta's shares faced downward pressure, closing approximately 10% lower after posting mixed earnings results post-market yesterday. Although Meta surpassed earnings projections for the first quarter, their forward guidance signaled increased costs due to heightened investment spending, dampening investor sentiment.

The weaker-than-expected GDP growth of 1.6% fell short of the anticipated 2.2%, and it was lower than the fourth-quarter reading of 3.4%. Household consumption remained resilient, expanding at a 2.5% annualized rate driven by robust spending on services. However, net exports weighed down the first-quarter reading, with imports outpacing exports, possibly indicating weak global demand. Additionally, the contribution to GDP growth from government spending decelerated to a 1.2% annualized pace compared to 4.6% in the previous quarter.

Coupled with the subdued growth, the GDP Chain Price Index's increase of 3.1% surpassed expectations of 2.7%, driving up bond yields and dragging down stocks on Thursday. Despite market volatility, it's essential to note that the S&P 500 has seen a substantial 20% gain since early November, and market pullbacks of 5% to 10% are typical occurrences.

Looking ahead to Friday, market focus will be on inflation and corporate earnings. Approximately 40% of S&P 500 companies have reported earnings, with 80% exceeding expectations. Full-year estimates remain steady, projecting around 10.3% year-over-year growth.

Expectations for core PCE inflation suggest a slight decrease to 2.7% year-over-year from the prior 2.8%. However, headline PCE may see a modest increase from 2.5% to 2.6%, likely driven by higher commodity prices. Despite elevated inflation figures at the start of the year, the overall trend remains downward. The market anticipates Fed rate cuts, with the first cut potentially occurring at the September meeting, given the economic landscape.


                       Apr 24, 2024           Apr 25, 2024   
                  --------------------   --------------------
Dow                 38,460.92   -42.77      38085.80  -375.12
Nasdaq              15,712.75   +16.11      15611.76  -100.99
S&P 500              5,071.63     1.08       5048.42   -23.21

NYSE Volume                      3.65B                  3.95B
NYSE Advancers                   1,186                    839
NYSE Decliners                   1,596                  1,975

Nasdaq Volume                    4.73B                  4.74B
Nasdaq Advancers                 1,873                  1,403
Nasdaq Decliners                 2,291                  2,771

                                 New Highs/Lows

                   04/18  04/19  04/22  04/23  04/24  04/25
                 --------------------------------------------
NYSE New Highs        12     13     29     64     58     44
NYSE New Lows         58     38     44     15     30     48
Nasdaq New Highs      21     34     42     59     61     40
Nasdaq New Lows      239    209    188     87    121    206

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                              TRADER'S TIP:  
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TRADER'S TIP: "When Your Indicators Contradict The Trend"

Due to their overly sensitive nature, some technical indicators will turn in one direction while the price trend remains in the other. A rule of thumb - whenever a price trend and indicators are in conflict, always go with price until the trend is broken. 
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                         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/042524SPX.jpg





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                             MARKET CALENDAR
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--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
MONDAY, APRIL 22					
None scheduled
				
TUESDAY, APRIL 23					
9:45 am	S&P flash U.S. services PMI	
9:45 am	S&P flash U.S. manufacturing PMI	
10:00 am	New home sales
	
WEDNESDAY, APRIL 24					
8:30 am	Durable-goods orders	March	
8:30 am	Durable-goods minus transportation	

THURSDAY, APRIL 25					
8:30 am	GDP	
8:30 am	Initial jobless claims				
8:30 am	Advanced U.S. trade balance in goods	
8:30 am	Advanced retail inventories	%
8:30 am	Advanced wholesale inventories	
10:00 am	Pending home sales	

FRIDAY, APRIL 26					
8:30 am	Personal income 		
8:30 am	Personal spending 
8:30 am	PCE index]			
8:30 am	Core PCE index			
8:30 am	PCE (year-over-year)			
8:30 am	Core PCE (year-over-year)			
10:00 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: "One Good Move Deserves Another"

In most cases the further and faster the market moves in one direction, the faster and more intense the reversal will be when the market has used up its energy. 

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                      STOCKS COVERED IN THIS ISSUE    
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N/A SECTOR

Century Aluminum Company (CENX: N/A/N/A) - BULLISH BOUNCE. CENX has charted an upward weekly trend until recently when sellers showed up to push prices lower. On Thursday the selling ran into solid support. A potential bounce up from this level should attract buyers and likely return CENX to the previously established uptrend. The Bullish Bounce set-up is the basis for our BUY entry, so be ready to go long on a rise to our trigger at 17.97. Set a trailing stop of 1.55, tightening to 0.78 on a 1.72 profit. CENX closed at 17.61 on Thursday. Earnings Report Date: May 1, 2024. Beta: 2.74. Market-Cap: . Not Optionable.

Pilgrim's Pride Corporation (PPC: N/A/N/A) - BULLISH BOUNCE. This trader-friendly setup turns repetitive stock behavior into real profits. Based on the tendency for up-trending stocks to drop briefly and then resume the up-trend, the Bullish Bounce places traders into excellent stocks when conditions are primed for more skyward movement. PPC's current price action near moving average support signals a potential BUY entry at 36.38, followed by a 2.16 trailing stop which can be tightened to 1.08 upon earning 1.72. PPC closed Thursday at 35.88. Earnings Report Date: May 1, 2024. Beta: 0.79. Market-Cap: . Not Optionable.

Alcoa Corporation (AA: N/A/N/A) - BULLISH BOUNCE. Among other strengths, the Bullish Bounce protects traders from buying a stock "at the top" of its current cycle. The entry into this setup always takes place in upward-moving stocks that have retreated a bit under normal conditions. Now sitting at 35.94, AA is on our radar for a BUY entry at 36.53. If you purchase shares of AA, be sure to also place a trailing stop of 2.81. Snug it up to 1.41 on a 1.72 gain. Earnings Report Date: Jul 17, 2024. Beta: 2.49. Market-Cap: . Not Optionable.

Hamilton Beach Brands Holding Company (HBB: N/A/N/A) - 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. HBB traders reached this state of stand-off on Thursday with the tightest range of the past seven days. You can take advantage of their efforts by placing a low risk BUY trigger at 21.83 and a SELL short trigger at 20.13. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.7 which can be tightened to 0.85 on a 1.72 gain. HBB closed Thursday at 21.21. Earnings Report Date: May 1, 2024. Beta: 0.92. Market-Cap: . Not Optionable.

Beyond, Inc. (BYON: N/A/N/A) - SQUEEZE PLAY. BYON traders on both sides of the fence are now locked in a head-to-head shootout. Thursday's price range was the narrowest in over a week, as neither Bears or Bulls have been able to clearly gain the upper hand. This gives us an opportunity to catch the next directional move with little risk of loss. To do this we'll place both a long and a short trigger with a BUY at 22.06 and a SELL short trigger at 20.31. When one of the orders is filled, cancel the remaining order and enter a 1.75 trailing stop. When you've reached a 1.72 paper profit, tighten the stop to 0.88. BYON closed at 21.22 on Thursday. Earnings Report Date: May 6, 2024. Beta: 3.83. Market-Cap: . Not 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/ 

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                           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/ 
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