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August 16, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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The ability to think and trade objectively is one of the most important skills you can acquire as a trader. With it you can view both the market and your individual trades without distortion caused by unrealistic expectations.
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"QUICK LIST"
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Stock 08/16 08/16 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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TRQ 23.47 0.17 23.98 1.67/0.84 1.6
GOOS 21.69 -0.17 22.15 1.65/0.83 1.58
NOTV 25.60 -0.13 26.63 24.55 2.08/1.04 2.66
SWTX 30.15 -0.37 31.03 28.2 2.83/1.42 4.06
DV 27.35 0.02 27.9 26.02 1.88/0.94 1.98
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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US stocks were mixed on Tuesday following news that housing starts declined more than expected, while building permits, industrial production and capacity utilization increased more than predicted. In equities news, the share prices of Walmart (WMT $139) and Home Depot (HD $327) both rallied after the two companies topped quarterly earnings estimates. Oil prices, gold and the USD/dollar were lower, treasuries were mostly lower, lifting yields. Aug 15, 2022 Aug 16, 2022
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Dow 33,912.44 151.39 34,152.01 239.57
Nasdaq 13,128.05 80.87 13,102.55 -25.50
S&P 500 4,297.14 16.99 4,305.20 8.06
NYSE Volume 3.77B 4.38B
NYSE Advancers 1,625 1,723
NYSE Decliners 1,583 1,475
Nasdaq Volume 4.48B 5.03B
Nasdaq Advancers 2,671 2,077
Nasdaq Decliners 1,932 2,496
New Highs/Lows
08/09 08/10 08/11 08/12 08/15 08/16
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NYSE New Highs 26 61 57 56 61 64
NYSE New Lows 58 23 28 24 19 21
Nasdaq New Highs 47 69 84 96 90 91
Nasdaq New Lows 96 78 47 61 52 61
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TRADER'S TIP:
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TRADER'S TIP: "Earnings Conference Calls" Since the SEC implemented the Fair Disclosure laws, most companies have begun allowing individual shareholders to listen in on earnings conference calls that were previously limited to analysts only. If you are tracking a stock as it approaches its scheduled earnings announcement, always look for the related conference call and mark it on your calendar. The behavior of the stock during the call can telegraph early reaction to management's explanation of earnings related events. If you can't find any mention of the call, give the firm's Investor Relations department a ring and ask when or if a call will be held. **************************
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 - 4305.20 August 16, 2022 52-Week High: 4818.62 52-Week Low: 3636.85 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4560.99 Resistance 2: 4392.61 Resistance 1: 4336.38 Pivot: 4224.23 Support 1: 4168.00 Support 2: 4055.85 Support 3: 3887.47 https://www.prorightline.com/rlch/081622SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Wednesday, August 17, 2022: 17-Aug 8:30 am Retail sales 17-Aug 8:30 am Retail sales ex-motor vehicles 17-Aug 8:30 am Real retail sales 17-Aug 10 am Business inventories Thursday, August 18, 2022: 18-Aug 8:30 am Initial jobless claims 18-Aug 8:30 am Continuing jobless claims 18-Aug 8:30 am Philadelphia Fed manufacturing index 18-Aug 10 am Existing home sales (SAAR) 18-Aug 10 am Leading economic indicators Friday, August 19, 2022: 19-Aug 10 am Advance report on services 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: "Earnings Season - Playing the Pre-Earnings Run" Every few months there are companies that pre-announce BETTER-than- expected upcoming earnings. Consequently their stock tends to ramp up as the announcement date approaches. Traders can take advantage of these pre-earnings runs by looking at earnings history and a company's record for beating Wall Street estimates. Combine this with current sentiments on the specific sector as well as recent news on "sympathy stocks," and this type of information provides some insight as to where pre-earnings runs may develop. Just remember that very often a key part of playing the run is to exit prior to the actual announcement, locking in profits BEFORE the Street has a chance to react to the numbers. Oftentimes, shares turn sharply lower immediately following the announcement - regardless of the numbers - as traders rush to take profits. ***********************************
STOCKS COVERED IN THIS ISSUE
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BASIC MATERIALS SECTOR Turquoise Hill Resources Ltd. (TRQ: Basic Materials/Copper) - BULLISH BOUNCE. Positive price behavior near moving average support on Tuesday qualifies TRQ for a Bullish Bounce setup. After several sessions of declining prices, TRQ should soon begin trading in step with its established weekly uptrend. Tell your broker to BUY shares if TRQ moves up to our entry trigger set at 23.98. You can also enter a 1.67 trailing stop, to be replaced with a 0.84 trailing stop when you obtain a 1.6 profit. TRQ closed Tuesday at 23.47. Earnings Report Date: Oct 31, 2022. Beta: 1.70. Market-Cap: 4.727B. Optionable. CONSUMER CYCLICAL SECTOR Canada Goose Holdings Inc. (GOOS: Consumer Cyclical/Apparel Manufacturing) - BULLISH BOUNCE. Another bullish bouncer, GOOS appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Tuesday's positive price action near Moving Average support says it's time to BUY shares if GOOS reaches our entry trigger set at 22.15. Also place a 1.65 trailing stop which can be narrowed to 0.83 when you reach a 1.58 profit. GOOS closed Tuesday at 21.69. Earnings Report Date: Nov 03, 2022. Beta: 1.42. Market-Cap: 2.306B. Optionable. HEALTHCARE SECTOR Inotiv, Inc. (NOTV: Healthcare/Diagnostics & Research) - SQUEEZE PLAY. NOTV 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 26.63 and a SELL short entry at 24.55. Once your trade is filled, enter a 2.08 trailing stop. Tighten it to 1.04 after a 2.66 gain. NOTV closed on Tuesday at 25.60. Earnings Report Date: N/A. Beta: 2.77. Market-Cap: 653.204M. Optionable. SpringWorks Therapeutics, Inc. (SWTX: Healthcare/Biotechnology) - SQUEEZE PLAY. Tuesday's narrow price range has created a potentially profitable setup in SWTX, 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 31.03 and a SELL short entry at 28.2. Let SWTX's price action determine your long or short entry. Once the order is filled, place a 2.83 trailing stop, and tighten it to 1.42 upon getting a 4.06 gain. SWTX closed Tuesday at 30.15. Earnings Report Date: Nov 02, 2022. Beta: 0.82. Market-Cap: 1.491B. Optionable. TECHNOLOGY SECTOR DoubleVerify Holdings, Inc. (DV: Technology/Software-Application) - SQUEEZE PLAY. Traders are feeling the pressure as DV'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 27.9 and a SELL short entry at 26.02. DV's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.88 trailing stop. Tighten it to 0.94 after you get a 1.98 gain. DV closed Tuesday at 27.35. Earnings Report Date: Nov 07, 2022. Beta: N/A. Market-Cap: 4.486B. 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 ---------------- ------- -------- ------- ------ ------- Gamestop GME 7/7/2022 7/22/2022 4-for-1 Yes Alphabet GOOG 2/1/2022 7/18/2022 20-for-1 Yes Nasdaq Inc NDAQ 7/20/2022 8/29/2022 3-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!
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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. |