Notes From The Editor

Making money in stocks doesn't have to be hard. Years of trading have taught me that when it comes to profits, it's not about how hard you work. It's about knowing the right things to do, and putting that knowledge to work.

Here are nine simple rules for market success ...

1) Trade With The Trend. You can't change the weather, but you can set your sails to take advantage of whichever direction the market wind is blowing.

2) Buy Strength, Sell Weakness. Stocks trading at 52-week highs usually go higher. Stocks trading at 52-week lows usually go lower.

3) Base Your Trading Decisions On Logic And Reason. Respect the power of your feelings to influence your behavior. Keep your emotions under control.

4) Plan Every Trade. Trading blind is senseless. Before putting money on the table, know exactly what you will do if the stock goes up, or if it goes down.

5) Stick With A Trading Method You Have Confidence In. Realize that you don't have to be "right" on every trade. A few losers do not mean your system is defective.

6) Manage Risk. Take small losses rather than let them become large losses. Never add to a losing position.

7) Keep A Trading Log. Even if you never use it for analyzing your trades, a journal provide a written reminder of your ability to stick with your plan. To boot, it's in your own handwriting, which can be pretty persuasive if self-doubt starts to creep in while you're in a trade.

8) Measure Your Results. You're trading to make a profit. If your figures don't add up, stop putting money at risk until you know why.

9) Invest in your trading education. The victory goes to the prepared, so prepare for success. Get good training and instruction. As the saying goes, "If you think education is expensive, try ignorance . . ."

Trade well!

Thomas Sutton, Editor

Quick List

    
Stock     04/30     04/30      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

NTLA      21.40     -0.58               20.65        1.61/0.81      1.60
AVTE      20.01     -0.54     20.96     19.05        1.91/0.96      1.85
BEAM      21.22     -0.83      22.2     20.44        1.76/0.88      1.78
LBPH      21.30      0.07     22.11     20.25        1.86/0.93      1.65
DNTH      21.35     -0.55     22.48     20.45        2.03/1.02      1.85

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 major stock market indices plummeted by more than 1.5% on Tuesday, erasing Monday's gains and denting last week's robust rally, which marked the strongest weekly performance in five months. Global markets also faltered, with European stocks leading the downturn following a higher-than-expected eurozone core inflation report. Both oil and gold prices took a hit, with gold experiencing notable downward pressure, down approximately 5% from mid-April highs. Meanwhile, the U.S. dollar continued its ascent, bolstered by stronger economic growth and firmer inflation compared to European and Asian counterparts.

Tuesday's market action was largely influenced by a higher-than-anticipated reading on the first-quarter employment cost index (ECI), fueling concerns about renewed inflationary pressures and dampening investor sentiment. This sentiment shift was evidenced by the underperformance of cyclical investments such as small-caps, energy, consumer discretionary, and industrials.

Interest rates climbed higher as the Federal Reserve's meeting approached, with the benchmark 10-year Treasury yield hovering just above 4.65%, slightly below last week's peak of 4.7%, the highest since November. The rise in rates was triggered by the release of first-quarter ECI data, indicating a slight uptick in wage growth. While this bodes well for consumer spending, it raises concerns about inflation, a focal point of the Fed's policy meeting scheduled for Wednesday.

Market expectations for rate cuts have shifted significantly in recent weeks, from anticipation of six cuts at the beginning of the year to pricing in just one. Attention will be on Chair Powell's press conference for insights into the Fed's stance on inflation and the potential timing of future rate adjustments.

In addition to the Fed meeting, this week is packed with crucial data releases. Wednesday will feature manufacturing and ADP private-payrolls data, while Thursday brings first-quarter labor productivity figures, which are increasingly important for understanding GDP growth and inflation dynamics. The week culminates with the eagerly awaited April employment report on Friday.

                        Apr 29, 2024           Apr 30, 2024   
                  --------------------   --------------------
Dow                 38,386.09   146.43      37815.92  -570.17
Nasdaq              15,983.08    55.18      15657.82  -325.26
S&P 500              5,116.17    16.21       5035.69   -80.48

NYSE Volume                       3.4B                  4.08B
NYSE Advancers                   1,997                    495
NYSE Decliners                     811                  2,333

Nasdaq Volume                    4.97B                  5.22B
Nasdaq Advancers                 2,614                  1,181
Nasdaq Decliners                 1,602                  3,029

                                 New Highs/Lows

                   04/23  04/24  04/25  04/26  04/29  04/30
                 --------------------------------------------
NYSE New Highs        64     58     44     79     79     64
NYSE New Lows         15     30     48     22      9     36
Nasdaq New Highs      59     61     40     58     86     56
Nasdaq New Lows       87    121    206     92     71    123
   

TRADER'S TIP: "Sometimes You Gotta ..."

The fear of "missing out" can cloud a trader's judgment, so be sure to base all buy or sell decisions on careful planning instead of emotional reactions. The market is full of opportunities - there's plenty for everyone. Rushing in can lead to problems, so remember the old saying "sometimes you gotta slow down to go fast!"

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".

Market Calendar

ECONOMIC REPORTS AND EVENTS (all times are Eastern):    

MONDAY, APRIL 29					
None scheduled				
TUESDAY, APRIL 30					
8:30 am	Employment cost index	
9:00 am	S&P Case-Shiller home price index 
9:45 am	Chicago Business Barometer (PMI)	
10:00 am	Consumer confidence	

WEDNESDAY, MAY 1					
8:15 am	ADP employment	
10:00 am	Construction spending	
10:00 am	ISM manufacturing	
10:00 am	Job openings	
2:00 pm	FOMC interest-rate decision				
2:30 pm	Fed Chair Powell press conference				
5:30 pm	Auto sales	

THURSDAY, MAY 2					
8:30 am	Initial jobless claims	
8:30 am	U.S. trade deficit	
8:30 am	U.S. productivity	
8:30 am	U.S. unit-labor costs	
10:00 am	Factory orders	

FRIDAY, MAY 3					
8:30 am	U.S. employment report	
8:30 am	U.S. unemployment rate	
8:30 am	U.S. hourly wages	
8:30 am	Hourly wages year over year			
10:00 am	ISM services		
7:45 pm	Chicago Fed President Austan Goolsbee speech				
8:15 pm	New York Fed President John Williams speech

For a chart of typical Up or Down market reactions to specific major US economic reports 
go to:  Economic Indicator Effects

TRADER'S TIP: "Reversals"

When it comes to reversals on daily charts, the closing price is the key price. Also, it's a good idea to give any reversal from support or resistance at least one day to confirm itself.

Stocks Covered in This Issue

Intellia Therapeutics, Inc. (NTLA) - BEARISH U-TURN. NTLA's weekly downtrend was recently interrupted by a bullish counter-trend rebound. Unfortunately for Bulls this uphill bounce reversed on Tuesday after running into resistance. NTLA is now at risk of dropping even lower. On a continued pullback, short entries can be taken at 20.65. Manage your position with a 1.61 stop, pulling it up to 0.81 on a gain of 1.60. NTLA closed at 21.40 on Tuesday. Earnings Report Date: May 2, 2024. Beta: 1.80. Market-Cap: 2.057B. Not Optionable.

Aerovate Therapeutics, Inc. (AVTE) - SQUEEZE PLAY. AVTE 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 20.96 and a SELL short entry at 19.05. Once your trade is filled, enter a 1.91 trailing stop. Tighten it to 0.96 after a 1.85 gain. AVTE closed on Tuesday at 20.01. Earnings Report Date: May 13, 2024. Beta: 1.23. Market-Cap: 575.035M. Not Optionable.

Beam Therapeutics Inc. (BEAM) - SQUEEZE PLAY. Traders are feeling the pressure as BEAM's intra-day price range on Tuesday 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 22.2 and a SELL short entry at 20.44. BEAM's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.76 trailing stop. Tighten it to 0.88 after you get a 1.78 gain. BEAM closed Tuesday at 21.22. Earnings Report Date: May 8, 2024. Beta: 1.77. Market-Cap: 1.747B. Not Optionable.

Longboard Pharmaceuticals, Inc. (LBPH) - SQUEEZE PLAY. Tuesday's narrow price range has created a potentially profitable setup in LBPH, 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 22.11 and a SELL short entry at 20.25. Let LBPH's price action determine your long or short entry. Once the order is filled, place a 1.86 trailing stop, and tighten it to 0.93 upon getting a 1.65 gain. LBPH closed Tuesday at 21.30. Earnings Report Date: May 7, 2024. Beta: 1.25. Market-Cap: 828.106M. Not Optionable.

Dianthus Therapeutics, Inc. (DNTH) - SQUEEZE PLAY. A look at DNTH'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 22.48 and a SELL short trigger at 20.45. Once DNTH shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 2.03 and tighten to 1.02 on a 1.85 gain. DNTH closed Tuesday at 21.35. Earnings Report Date: May 13, 2024. Beta: --. Market-Cap: 626.593M. Not 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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