April 6, 2023 - The RightLine Report
Notes From The Editor
When it comes to making a buck, few things are more satisfying than executing a successful trade. There's a unique feeling one gets from planning a set-up, pulling the trigger, and exiting with a profit. Of course, the monetary gain is nice too.
One of the keys to keeping a healthy mindset is reward yourself for winning trades - not necessarily the "eek out a few dollars" positions, but those that move you appreciably closer to your goals.
But wait ... isn't the money its own reward? Absolutely! But these gains aren't tangible; they grow your trading account, which is vital, but they don't immediately translate into something that enriches your life. Without any sense of material benefit, the whole pursuit of trading can begin to feel a bit like a game.
To stay focused on what really matters - the things you want to accomplish with your winnings from trading - remember to occasionally give yourself a pat on the back for a profitable position. Do something nice for yourself. Give yourself a day of rest and relaxation. Even consider taking a small portion of your winnings out of your account, and use that money to buy something you've had your eye on.
While this sounds like common-sense stuff, it's easy to overlook; we humans have a psychological need for positive reinforcement. This can be lacking if "paper gains" are all you realize from winning trades. So the next time you have a winner on your hands, don't hesitate to reward yourself for your victory. Once you get the ball rolling with a healthy mindset, you'll find your long term goals are closer and closer with each passing month.
Here's to profits,
Kent Barton
Senior Analyst
The US stock markets are closed Friday April 7th in honor of Good Friday and Easter weekend celebrating the Resurrection of Jesus Christ, the King of Kings. RightLine will publish the next Report on Tuesday April 11th. Peace & Blessings!
Stocks Covered Today Stock Splits
Quick List
Stock 04/06 04/06 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
KSS 22.66 0.05 23.07 21.27 1.8/0.9 2.5
SFM 34.64 0.29 35.19 2.57/1.29 1.82
CYRX 21.08 -0.01 21.74 20.12 1.62/0.81 3.2
SLG 23.55 -0.10 24.42 22.56 1.86/0.93 4.02
JNPR 33.69 -0.62 34.19 1.95/0.98 1.3
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.
Stocks Covered Today Stock Splits
Market Summary
Tech stocks led the S&P 500 into a bullish close on Thursday as the market ended a Good Friday Holiday shortened trading week on a high note despite signs of a weakening labor market. It was a volatile session, with the latest weekly unemployment claims coming in higher than expected, adding to recent data that indicates job growth is slowing. In addition, job cuts have surged almost five times so far in 2023 compared to the same period a year ago. During the last few months, traders have cheered signs of economic cooling on the hope that it would convince the Federal Reserve Bank to change course on its agressive interest rate hiking campaign. But now many are wondering if the central bank has gone too far in its attempt to curb inflation, and as a result forced the economy into a recession. In equities, AMC Entertainment (AMC $5) gained 25% in its latest round of volatile trading. Gold and oil were lower, the yeild on a 10-year treasury note was higher. Bitcoin was lower, closing at $28,038.
Apr 5, 2023 Apr 6, 2023
-------------------- --------------------
Dow 33,482.72 80.34 33,485.29 2.57
Nasdaq 11,996.86 -129.47 12,087.96 91.09
S&P 500 4,090.38 -10.22 4,105.02 14.64
NYSE Volume 3.97B 3.49B
NYSE Advancers 1,125 1,625
NYSE Decliners 1,872 1,350
Nasdaq Volume 4.39B 3.88B
Nasdaq Advancers 1,474 2,528
Nasdaq Decliners 2,961 1,898
New Highs/Lows
03/30 03/31 04/03 04/04 04/05 04/06
--------------------------------------------
NYSE New Highs 44 65 58 48 27 34
NYSE New Lows 16 19 11 39 51 39
Nasdaq New Highs 75 95 96 82 55 59
Nasdaq New Lows 153 142 131 233 272 175
Stocks Covered Today Stock Splits
TRADER'S TIP: "The Market In The Mirror"
Ever notice how the stock market seems to have a mind of its own, and does whatever it pleases with little regard for what any of us think? This seemingly unpredictable and somewhat mysterious aspect of the market perpetuates the idea that Wall Street is beyond comprehension - maybe even beyond the laws of nature! Be assured that there is nothing magical going on behind the curtain. The market is made up entirely of human beings - just like you.
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".
S&P 500 - 4105.02 April 6, 2023
52-Week High: 4521.16
52-Week Low: 3491.58
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 4375.63
Resistance 2: 4216.41
Resistance 1: 4162.86
Pivot: 4057.19
Support 1: 4003.64
Support 2: 3897.97
Support 3: 3738.75
NASDAQ Composite - 12087.96 April 6, 2023
52-Week High: 13978.25
52-Week Low: 10088.83
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 13214.08
Resistance 2: 12621.18
Resistance 1: 12421.54
Pivot: 12028.29
Support 1: 11828.64
Support 2: 11435.39
Support 3: 10842.49
Dow Industrials - 33485.29 April 6, 2023
52-Week High: 35492.22
52-Week Low: 28660.94
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 34975.85
Resistance 2: 33961.57
Resistance 1: 33617.86
Pivot: 32947.29
Support 1: 32603.58
Support 2: 31933.01
Support 3: 30918.73
Stocks Covered Today Stock Splits
Market Calendar
ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, April 3 8:30 am St. Louis Fed President Bullard speaks 9:45 am S&P final U.S. manufacturing PMI 10:00 am ISM manufacturing 10:00 am Construction spending 4:15 pm Fed Gov. Cook speaks TUESDAY, April 4 10.00 am Factory orders 10:00 am Job openings 6:00 pm Cleveland Fed President Mester speaks WEDNESDAY, April 5 8:15 am ADP employment 8:30 am U.S. trade balance 9:45 am S&P final U.S. services PMI 10:00 am ISM services THURSDAY, April 6 8:30 am Initial jobless claims 8:30 am Continuing jobless claims 10:00 am St. Louis Fed President Bullard speaks FRIDAY, April 7 The US stock markets are closed for Good Friday holiday 8:30 am U.S. employment report 8:30 am U.S. unemployment rate 8:30 am Average hourly wages 8:30 am Average hourly wages (year over year) 3:00 pm Consumer credit MONDAY, April 10 10:00 am Wholesale inventories TUESDAY, APRIL 11 6:00 am NFIB optimism index 1:30 pm Chicago Fed President Goolsbee speaks 7:30 pm Minneapolis Fed President Kashkari speaks For a chart of typical Up or Down market reactions to specific major US economic reports go to: Economic Indicator Effects
Stocks Covered Today Stock Splits
TRADER'S TIP: "Successful Traders Are Usually Risk-Averse"
Unlike the public perception that stock traders are wild and free gamblers who love to take risks, most successful professionals are just the opposite. A good example of a successful trader is Bernard Oppetit, Global Head of Equity Derivatives at Paribas, part of the international wholesale bank Groupe Paribas with assets of over $250 Billion. Here's what he has to say about risk in an interview with trader and author Alpesh Patel.
"I am very risk-averse. I would definitely take the certainty of making $10,000 than the 10% chance of making $100,000."
"The important thing is to look at risk in a rational way."
"Even though I know I will get out after a certain loss, I consider the amount I have risked as the whole amount invested. Also, I look to see what percentage probability there is of a certain percentage rise and I compare that to the risk I am taking. I would look at some kind of distribution of possible outcomes, such as a 50% chance of doing something special, or a 50% chance of doing nothing in particular, or a 50% chance of a small loss against a 50% chance of a great gain. There has to be some idea of the distribution of outcomes."
"There is a joke about an economics professor who is walking in New York with a friend. His friend notices a $100 bill on the sidewalk and points to the bill and says, "Look professor, a $100 bill." The economics professor replies, "No that can not be so, if that was a $100 bill somebody would have picked it up already." Still I believe there are opportunities to make money with very little risk."
Stocks Covered in This Issue
CONSUMER CYCLICAL SECTOR
Kohl's Corporation (KSS: Consumer Cyclical/Department Stores) - SQUEEZE PLAY. Thursday's trading session left KSS 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 23.07 and your SELL short trigger at 21.27. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.8 trailing stop. Once you have a 2.5 profit, reduce the stop to 0.9. Earnings Report Date: May 17, 2023. Beta: 1.72. Market-Cap: 2.666B. Optionable.
CONSUMER DEFENSIVE SECTOR
Sprouts Farmers Market, Inc. (SFM: Consumer Defensive/Grocery Stores) - BULLISH BOUNCE. SFM 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 SFM 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 35.19. Set a trailing stop of 2.57, tightening to 1.29 on a 1.82 profit. SFM closed at 34.64 on Thursday. Earnings Report Date: May 01, 2023. Beta: 0.39. Market-Cap: 3.699B. Optionable.
INDUSTRIALS SECTOR
Cryoport, Inc. (CYRX: Industrials/Integrated Freight & Logistics) - SQUEEZE PLAY. The ticker for Thursday's session shows CYRX 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 21.74 and a SELL short trigger at 20.12. When CYRX 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 1.62 trailing stop. Upon reaching a 3.2 profit, resize the stop to 0.81. Earnings Report Date: May 03, 2023. Beta: 1.33. Market-Cap: 1.099B. Optionable.
REAL ESTATE SECTOR
SL Green Realty Corp. (SLG: Real Estate/REIT-Office) - SQUEEZE PLAY. SLG 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 24.42 and a SELL short entry at 22.56. Once your trade is filled, enter a 1.86 trailing stop. Tighten it to 0.93 after a 4.02 gain. SLG closed on Thursday at 23.55. Earnings Report Date: Apr 19, 2023. Beta: 1.50. Market-Cap: 1.516B. Optionable.
TECHNOLOGY SECTOR
Juniper Networks, Inc. (JNPR: Technology/Communication Equipment) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, JNPR 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 33.69, plan to buy shares at 34.19 and use a 1.95 trailing stop. Tighten the stop to 0.98 on a 1.3 gain. Earnings Report Date: Apr 25, 2023. Beta: 0.94. Market-Cap: 10.826B. 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.
Stocks Covered Today Stock Splits
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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