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August 15, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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When it comes to shopping, everybody wants a good deal. It's no surprise that the same thing is true with stocks. Even the common investment advice to "buy low and sell high" is frequently interpreted as "buy cheap." Many investors seem to forget that more often than not there is a good reason why cheap stocks are so cheap!
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"QUICK LIST"
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Stock 08/15 08/15 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
IEP 23.74 -0.42 24.62 22.93 1.69/0.85 2.3
VIST 25.25 -0.24 25.84 24.31 1.53/0.77 2.26
BLTE 22.17 -0.93 22.86 20.91 1.95/0.98 3.76
ARVN 24.62 -0.48 25.26 23.56 1.7/0.85 1.98
EH 20.48 -0.68 21.43 19.4 2.03/1.02 2.82
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 wrapped up Tuesday on a downward note, as investor confidence took a hit from news that Fitch Ratings is considering potential credit downgrades for US banks, and that economic activity in China is below par. This cast a shadow over an otherwise positive retail-sales report, contributing to the slight decline in equities during August. Meanwhile, the 10-year Treasury yield experienced another uptick, surpassing 4.2% and reaching a new peak for 2023, coming close to the previous high observed last October. Additionally, concerns about Chinese economic growth prompted oil prices to drop by over 1.5%. Following the steady stock market rally from March through July, the resurgence of uneasiness isn't unexpected as economic data fails to consistently exceed expectations. However, there doesn't appear to be a drastic shift in the fundamental backdrop. A closer look at retail sales reveals that consumer spending remains robust, even amidst the headwinds of the Federal Reserve Bank's tightening policy. Overall, retail sales experienced a 0.7% boost in July compared to June, surpassing consensus forecasts. When considering less volatile categories, control-group sales demonstrated an even stronger 1.0% month-over-month increase, indicating an acceleration from the pace seen in June. Upon further examination, we notice that sales of automobiles, furniture, electronics, and appliances dipped, which suggests consumers are reallocating spending from larger purchases to services and leisure activities. Notably, there was a substantial rise in spending at bars and restaurants. Overall, this confirms that consumers aren't on the brink of scaling back spending, but underlying trends suggest that household consumption might soften as we move forward, particularly if wage growth continues to moderate. Aug 14, 2023 Aug 15, 2023
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Dow 35,307.63 26.23 34,946.39 -361.24
Nasdaq 13,788.33 143.48 13,631.05 -157.28
S&P 500 4,489.72 25.67 4,437.86 -51.86
NYSE Volume 3.9B 3.84B
NYSE Advancers 1,207 477
NYSE Decliners 1,706 2,453
Nasdaq Volume 4.28B 4.48B
Nasdaq Advancers 1,830 1,233
Nasdaq Decliners 2,517 3,128
New Highs/Lows
08/08 08/09 08/10 08/11 08/14 08/15
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NYSE New Highs 64 77 72 40 47 34
NYSE New Lows 65 37 31 37 55 80
Nasdaq New Highs 62 78 79 59 56 66
Nasdaq New Lows 204 188 181 177 205 224
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TRADER'S TIP:
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TRADER'S TIP: "Oh Well" Taking a planned loss is a calculated part of doing business. Don't let it bother you - just shrug it off and go forward. Not taking a loss as planned can cause damage to both your trading account and your morale. Remember that many traders are incredibly successful with less than a 50% winning trade ratio. It's not that you have a loser; it's how you manage the trade that is important. Another good reason to plan your trade and stick with it! **************************
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 - 4437.86 August 15, 2023 52-Week High: 4607.07 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 4645.24 Resistance 2: 4561.85 Resistance 1: 4512.95 Pivot: 4478.46 Support 1: 4429.56 Support 2: 4395.07 Support 3: 4311.68 https://www.prorightline.com/rlch/081523SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, August 14, 2023: 14-Aug None scheduled Tuesday, August 15, 2023: 15-Aug 8:30 am U.S. retail sales 15-Aug 8:30 am Retail sales minus autos 15-Aug 8:30 am Import price index 15-Aug 8:30 am Import price index minus fuel 15-Aug 8:30 am Empire State manufacturing survey 15-Aug 10:00 am Business inventories Wednesday, August 16, 2023: 16-Aug 8:30 am Housing starts 16-Aug 9:15 am Industrial production 16-Aug 9:15 am Capacity utilization 16-Aug 2:00 pm FOMC minutes of July meeting Thursday, August 17, 2023: 17-Aug 8:30 am Initial jobless claims 17-Aug 8:30 am Philadelphia Fed manufacturing survey 17-Aug 10:00 am U.S. leading economic indicators Friday, August 18, 2023: 18-Aug None scheduled 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: "Using The Market Map" While Charting and Technical Analysis gives us a map of the market by revealing the price levels where trading decisions need to be made, it doesn't make those decisions for us. It's our job as traders to begin the journey by entering positions and taking the right exits along the way! ***********************************
STOCKS COVERED IN THIS ISSUE
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ENERGY SECTOR Icahn Enterprises L.P. (IEP: Energy/Oil & Gas Refining & Marketing) - SQUEEZE PLAY. When a stock's daily price range contracts to an unusually low point, you can safely assume that in most cases a breakout from that range will result in a nice price move. To capture a portion of this potential movement we have set both a long and a short entry into IEP. A move to the upside will trigger our BUY entry at 24.62, while a drop to 22.93 will trigger our SELL short entry. Follow your position with a 1.69 trailing stop. Tighten the stop to 0.85 once you have a 2.3 gain. IEP closed Tuesday at 23.74. Earnings Report Date: Nov 01, 2023. Beta: 0.83. Market-Cap: 8.765B. Optionable. Vista Energy, S.A.B. de C.V. (VIST: Energy/Oil & Gas E&P) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in VIST'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 25.84 and a SELL order at 24.31. 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 2.26 gain. VIST closed Tuesday at 25.25. Earnings Report Date: N/A. Beta: 0.22. Market-Cap: 2.4B. Optionable. HEALTHCARE SECTOR Belite Bio, Inc (BLTE: 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 BLTE's case we will enter a BUY should it reach the 22.86 level, or a SELL short trade if it drops to 20.91. As usual a trailing stop is essential, 1.95 which should be tightened to 0.98 on a 3.76 gain. BLTE closed Tuesday at 22.17. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 603.607M. Not Optionable. Arvinas, Inc. (ARVN: Healthcare/Biotechnology) - SQUEEZE PLAY. Trader indecision has put ARVN squarely in the center of a Bull versus Bear standoff. This tight spot should soon give way to a clear winner in the short-term, and we want to be in position for the move. To do that we've set a BUY entry at 25.26 and a SELL short entry at 23.56. Now it's up to ARVN to show us which entry will be filled. Once the trade is underway place a 1.7 trailing stop, which can be tightened to 0.85 after you achieve a 1.98 profit. ARVN closed on Tuesday at 24.62. Earnings Report Date: Nov 06, 2023. Beta: 1.74. Market-Cap: 1.315B. Optionable. INDUSTRIALS SECTOR EHang Holdings Limited (EH: Industrials/Aerospace & Defense) - SQUEEZE PLAY. EH is caught in a dilemma. The stock's compressed price range on Tuesday has resulted in a condition comparable to a wound up rubber band. We anticipate that this undecided equity will take off soon, but with the direction still in question we'll let upcoming market action tell us whether to buy shares or sell short. EH is now at 20.48. We can capture price action either way by placing a BUY trigger at 21.43 and a SELL short trigger at 19.4. Once EH reveals its direction, enter your triggered order and disregard the other one. As soon as your position is in place, follow up with a trailing stop of 2.03. When you acquire a 2.82 profit, tighten the stop to 1.02. Earnings Report Date: Aug 17, 2023. Beta: 0.79. Market-Cap: 1.237B. 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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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. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. The publishers of The RightLine Report are not brokers or financial advisors, and are not acting in any way to influence the purchase or sale of any security. Stock picks, entry points and exit points should be considered an information resource to assist the trader in developing a trading plan and it is the sole responsibility of the reader to conduct his or her own due diligence before executing a trade. Trading securities should be considered speculative with a high degree of volatility and risk. The publishers of The RightLine Report recommend that anyone trading securities should do so with caution, exercise prudent trading discipline and have a personal risk management strategy in place before doing so. It is possible at this or some subsequent date, the publishers and staff of The Pro Right Line Corp. may own, buy or sell securities presented. The Pro Right Line Corp. is not a financial advisory service. Its publishers, owners or investors, are not liable for any losses or damages, monetary or otherwise, that result from the content of The RightLine Report. Past RightLine Report performance may not be indicative of future performance. All subscriptions and/or use of the RightLine.net website are subject to RightLine's "Terms of Use" and "Subscriber Terms & Conditions" which are posted at www.rightline.net. Any REDISTRIBUTION of the above information, without The RightLine's written consent, is STRICTLY PROHIBITED. Copyright / The Pro Right Line Corporation - All Rights Reserved To Unsubscribe, send an email to cs@prorightline.com or call 1-312-248-4241. |