April 26, 2022 - The RightLine Report ********************************** NOTES FROM THE EDITOR **********************************
While most new traders spend their time looking for the one "secret" to success in the stock market, there are actually several basic skills needed to flourish. Among these abilities are how to select stocks for trading, when to buy and sell your shares, and how to manage risk. Some people acquire the needed expertise through costly "learning experiences." Others pay an even higher price when they run out of money long before they understand how the market actually operates.
*********************************** "QUICK LIST" *********************************** Stock 04/26 04/26 Buy Short Trailing Stops Gain Symbol Price +/- Entry Entry Initial/Tighten Amount ------ -------- -------- -------- -------- --------------- -------- TMST 20.52 -0.74 21.69 19.88 1.81/0.91 1.8 BILI 20.57 -0.68 21.48 19.61 1.87/0.94 5.84 DLTR 168.24 -1.61 172.38 9.62/4.81 6.72 TRNO 76.43 -0.58 78.43 4.7/2.35 3.38 SQSP 20.32 -1.06 21.67 19.54 2.13/1.07 0 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/ ***************************** MARKET SUMMARY ***************************** The major US stock indices were significantly lower on Tuesday as traders continued wrestling with several key concerns including inflation, anticipated Fed Bank tightening, and the ongoing Russian military actions against Ukraine. A robust economic calendar featured a slight dip in consumer confidence this month, a decline in new home sales as home prices were up more than 20% compared to the same month last year, plus manufacturing activity up slightly along with durable goods orders. In equities, 3M (MMM $144), PepsiCo (PEP $173) and GE (GE $81) released strong earnings and revenue numbers. Despite the good news, all three companies closed lower along with larger the market. Gold, oil prices and the USD/dollar were all higher, as were treasuries, which put downward pressure on yields. Apr 25, 2022 Apr 26, 2022 -------------------- -------------------- Dow 34,049.46 238.06 33,240.18 -809.28 Nasdaq 13,004.85 165.56 12,490.74 -514.11 S&P 500 4,296.12 24.34 4,175.20 -120.92 NYSE Volume 5.21B 4.71B NYSE Advancers 1,634 557 NYSE Decliners 1,710 2,759 Nasdaq Volume 4.8B 5.16B Nasdaq Advancers 2,652 811 Nasdaq Decliners 2,135 3,929 New Highs/Lows 04/19 04/20 04/21 04/22 04/25 04/26 -------------------------------------------- NYSE New Highs 99 172 169 20 13 9 NYSE New Lows 285 97 251 412 440 392 Nasdaq New Highs 89 108 100 43 31 38 Nasdaq New Lows 306 206 485 635 626 781 *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "Consistency and Discipline" . . . He (Richard Dennis) placed classified ads proclaiming 'trader wanted,' he got some 1,000 responses from people eager to learn his methods. He settled on fewer than two dozen novices--among them two professional gamblers and a fantasy-game designer--and after a two-week training program, he gave them money to trade under his firm's auspices. Several went on to become top commodity-fund managers, including Jerry Parker of Chesapeake Capital Corp., who now manages more than US$1 billion. 'It was sink or swim. Sort of an experiment,' recalls Parker, a former accountant. Dennis ran the training, Parker says, 'because he wanted to have a certain chunk of money traded using systematic rules' while he went on and tried out new techniques. ~ Business Week "The key is consistency and discipline. Almost anybody can come up with a list of rules that are 80% as good as what we taught. What they can't do is give people the confidence to stick to those rules even when things are going bad." ~ Richard Dennis ************************** THE TECHNICAL ANALYST ************************** 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 - 4175.20 April 26, 2022 52-Week High: 4818.62 52-Week Low: 4056.88 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 4841.41 Resistance 2: 4596.09 Resistance 1: 4433.93 Pivot: 4350.78 Support 1: 4188.62 Support 2: 4105.46 Support 3: 3860.14 https://www.prorightline.com/rlch/042622SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, May 02, 2022: 25-Apr None scheduled Tuesday, April 26, 2022: 26-Apr 8:30 am Durable goods orders 26-Apr 8:30 am Core capital equipment orders 26-Apr 9 am 26-Apr 9 am FHFA U.S. home price index (year-over-year) 26-Apr 10 am Consumer confidence index 26-Apr 10 am New home sales (SAAR) Wednesday, April 27, 2022: 27-Apr 8:30 am Advance report on international trade in goods 27-Apr 10 am Pending home sales index 27-Apr 10 am Home ownership rate (NSA) Thursday, April 28, 2022: 28-Apr 8:30 am Initial jobless claims 28-Apr 8:30 am Continuing jobless claims 28-Apr 8:30 am Real gross domestic product (SAAR) (first estimate) Friday, April 29, 2022: 29-Apr 8:30 am Employment cost index 29-Apr 8:30 am PCE price index 29-Apr 8:30 am Core PCE price index 29-Apr 8:30 am PCE price index (year-over-year) 29-Apr 8:30 am Core PCE price index (year-over-year) 29-Apr 8:30 am Nominal personal income 29-Apr 8:30 am Nominal consumer spending 29-Apr 8:30 am Real disposable incomes 29-Apr 8:30 am Real consumer spending 29-Apr 9:45 am Chicago PMI 29-Apr 10 am UMich consumer sentiment index (final) 29-Apr 10 am UMich 5-year inflation expectations 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/ *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "Only Ten Percent" Although only ten percent of individual traders use "money management," it is by far the most important aspect of any trading plan. Leave it out of any trade and you immediately place that position in a high-risk category. Many people believe they can ignore money management just because they have a small trading account, while in fact these vital concepts can be used successfully with any amount of capital. Establishing good habits with a small account not only allows your money to grow, it also prepares you to trade intelligently when you have a much larger account. *********************************** STOCKS COVERED IN THIS ISSUE *********************************** BASIC MATERIALS SECTOR TimkenSteel Corporation (TMST: Basic Materials/Steel) - SQUEEZE PLAY. TMST 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 21.69 and a SELL short entry at 19.88. Once your trade is filled, enter a 1.81 trailing stop. Tighten it to 0.91 after a 1.8 gain. TMST closed on Tuesday at 20.52. Earnings Report Date: May 04, 2022. Beta: 1.86. Market-Cap: 951.753M. Optionable. COMMUNICATION SERVICES SECTOR Bilibili Inc. (BILI: Communication Services/Electronic Gaming & Multimedia) - SQUEEZE PLAY. The ticker for Tuesday's session shows BILI is now stuck in a tight price band. With the cyclical contraction and expansion nature of volatility in force, we should see a new period of price expansion in the days ahead. To improve the odds of catching the next directional wave, place a BUY trigger at 21.48 and a SELL short trigger at 19.61. When BILI starts moving out of its narrow range, your order will be triggered. Once you're in the trade, cancel the opposing trigger and set a 1.87 trailing stop. Upon reaching a 5.84 profit, resize the stop to 0.94. Earnings Report Date: May 11, 2022. Beta: 1.29. Market-Cap: 7.877B. Optionable. CONSUMER DEFENSIVE SECTOR Dollar Tree, Inc. (DLTR: Consumer Defensive/Discount Stores) - BULLISH BOUNCE. Up-trending stocks like DLTR have a tendency to bounce their way skyward rather than travel higher in a straight line. After touching down to a moving average support level on Tuesday, DLTR is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 172.38 if positive price action occurs. As always, follow your entry with a trailing stop. A 9.62 trailer should work well with DLTR. Tighten it to 4.81 on a 6.72 gainer. Earnings Report Date: May 25, 2022. Beta: 0.75. Market-Cap: 37.873B. Optionable. REAL ESTATE SECTOR Terreno Realty Corporation (TRNO: Real Estate/REIT-Industrial) - BULLISH BOUNCE. Here is another example of a stock in an established uptrend that has recently experienced a counter-trend drop. The sliding price action has now found support near a moving average zone, bouncing upward during Tuesday's session to close at 76.43. Anticipate the rebound to continue, and be ready to buy TRNO at 78.43. Follow your entry with a trailing stop of 4.7 which can be tightened to 2.35 on a 3.38 profit. Earnings Report Date: May 03, 2022. Beta: 0.73. Market-Cap: 5.773B. Optionable. TECHNOLOGY SECTOR Squarespace, Inc. (SQSP: Technology/Software-Infrastructure) - SQUEEZE PLAY. Tuesday's trading session left SQSP in a very narrow price range after buyers and sellers fought to a near stalemate. Both sides are looking for some traction, and a breakout either way could provide a nice gain in the short term. To get aboard, set your BUY trigger at 21.67 and your SELL short trigger at 19.54. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 2.13 trailing stop. Once you have a 0 profit, reduce the stop to 1.07. Earnings Report Date: May 12, 2022. Beta: N/A. Market-Cap: 2.843B. 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 *********************************** 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! ********** If you prefer to receive this report in html with color and graphics, or have any questions, send us an email using our contact form at:https://prorightline.com/index.php/contact-us/ ====================================================================== 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. 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