August 30, 2022 - The RightLine Report
Notes From The Editor
Although most traders spend a lot of time thinking about money, you're much better off to forget about the cash while you're actually trading. Instead, place your attention on maintaining a positive state of mind and making intelligent choices.
You make a decision each time you enter or exit a trade. Every decision you make is an opportunity to grow - IF you give your experiences the value they deserve. On the other hand, if you view your experiences simply as "mistakes" and harshly judge yourself for not always making "perfect" choices, your confidence - and your money - goes down instead of up.
Attitude is important because it affects everything. It flows from beliefs, which in turn create actions. Beliefs are like binoculars and blindfolds. They either help us to see opportunity, or keep us from seeing it at all.
Trading conditions are rarely optimum, so we usually make decisions under less than ideal circumstances. Don't be too hard on yourself. Always steer clear of severe self-criticism, while at the same time taking full responsibility for your actions.
You are on the only person who can set the real value for each trading experience you have. How much are yours worth? Most people tend to underestimate the importance and value of personal experiences.
Give yourself a reappraisal, and don't sell yourself short. Be sure to rate your experiences high enough to adequately support your basic needs along the journey of successful trading.
Make the choice to build your beliefs and improve your esteem by considering every trading experience valuable. Money is just a byproduct of wise choices. Focus on trading intelligently and the money always comes.
Trade well,
- Thomas Sutton, Editor
Stocks Covered Today Stock Splits
Quick List
Stock 08/30 08/30 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
VTYX 20.46 -0.25 21.44 19.58 1.86/0.93 3.16
SWTX 26.83 0.12 27.62 25.43 2.19/1.1 6.3
CVEO 30.27 0.61 30.68 2.45/1.23 2.62
ASLE 19.70 0.09 20.04 1.19/0.6 1.24
PD 26.70 0.49 27.29 25.34 1.95/0.98 2.94
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
US stocks finished the Tuesday session lower despite Consumer Confidence bouncing up from an 18-month low, as economic news confirming a tight labor market raised inflationary concerns. In other news, home prices were up less than expected. In equities, shares of Best Buy (BBY $75) moved higher after the company beat earnings estimates and reaffirmed guidance, while Big Lots (BIG $24) presented a milder loss than predicted but offered little in the way of future outlook. The USD/dollar, oil prices and gold were lower, treasuries were mixed.
Aug 29, 2022 Aug 30, 2022
-------------------- --------------------
Dow 32,098.99 -184.41 31,790.87 -308.12
Nasdaq 12,017.67 -124.04 11,883.14 -134.53
S&P 500 4,030.61 -27.05 3,986.16 -44.45
NYSE Volume 3.47B 3.86B
NYSE Advancers 1,091 671
NYSE Decliners 2,112 2,518
Nasdaq Volume 4.22B 4.64B
Nasdaq Advancers 1,393 1,319
Nasdaq Decliners 3,125 3,198
New Highs/Lows
08/23 08/24 08/25 08/26 08/29 08/30
--------------------------------------------
NYSE New Highs 29 38 43 28 30 12
NYSE New Lows 62 75 34 97 137 147
Nasdaq New Highs 65 54 53 37 24 18
Nasdaq New Lows 175 144 99 172 227 256
Stocks Covered Today Stock Splits
TRADER'S TIP: "Trading With Uncertainty"
Successful traders learn how to be comfortable with uncertainty. It's impossible to be sure that your trade will be profitable before you enter a position. Waiting for all the right "facts" to arrive usually results in missing out on the opportunity. Accept that you can't know in advance whether or not a trade will work. Risk is a constant companion when trading. You can't eliminate it, so learn how to recognize and manage it.
New traders want all the facts before they do a trade and by the time all the facts are out the trading opportunity is gone, then they enter the trade and wonder why it didn't work. If you're about to drive to town and you need every traffic light to turn green before you leave, you'll never get out of the driveway.
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 - 3986.16 August 30, 2022
52-Week High: 4818.62
52-Week Low: 3636.85
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 4396.88
Resistance 2: 4251.50
Resistance 1: 4154.58
Pivot: 4106.12
Support 1: 4009.20
Support 2: 3960.74
Support 3: 3815.35
NASDAQ Composite - 11883.14 August 30, 2022
52-Week High: 16212.23
52-Week Low: 10565.14
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 13341.66
Resistance 2: 12827.34
Resistance 1: 12484.52
Pivot: 12313.02
Support 1: 11970.20
Support 2: 11798.70
Support 3: 11284.38
Dow Industrials - 31790.87 August 30, 2022
52-Week High: 36952.65
52-Week Low: 29653.27
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 35332.80
Resistance 2: 34024.43
Resistance 1: 33153.91
Pivot: 32716.06
Support 1: 31845.54
Support 2: 31407.70
Support 3: 30099.33
Stocks Covered Today Stock Splits
Market Calendar
ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, AUG. 29, 2022: NONE TUESDAY, AUG. 30 9 am S&P Case-Shiller U.S. home price index (year-over-year) 10 am Consumer confidence index 10 am Job openings 10 am Quits 11 am New York Fed President John Williams speaks WEDNESDAY, AUG. 31 8 am Cleveland Fed President Loretta Mester speaks 8:15 am ADP employment report 9:45 am Chicago manufacturing PMI 6:30 pm Altanta Fed President Raphael Bostic speaks THURSDAY, SEPT. 1 8:30 am Initial jobless claims 8:30 am Continuing jobless claims 8:30 am Productivity revision (SAAR) 8:30 am Unit labor costs revision (SAAR) 9:45 am S&P U.S. manufacturing PMI (final) 10 am ISM manufacturing index 10 am Construction spending 3:30 pm Altanta Fed President Raphael Bostic speaks Varies Light motor vehicle sales (SAAR) FRIDAY, SEPT. 2 8:30 am Nonfarm payrolls 8:30 am Unemployment rate 8:30 am Average hourly earnings 8:30 am Labor-force participation rate 10 am Factory orders 10 am Core capital equipment orders revision 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: "Accredited Investor"
This is the SEC term for a person or entity meeting any of the criteria listed below:
"The federal securities laws define the term accredited investor in Rule 501 of Regulation D as:
1) a bank, insurance company, registered investment company, business development company, or small business investment company;
2) an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
3) a charitable organization, corporation, or partnership with assets exceeding $5 million;
4) a director, executive officer, or general partner of the company selling the securities;
5) a business in which all the equity owners are accredited investors;
6) a natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase;
7) a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
8) a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes."
Stocks Covered in This Issue
HEALTHCARE SECTOR
Ventyx Biosciences, Inc. (VTYX: Healthcare/Biotechnology) - SQUEEZE PLAY. Tuesday's narrow price range has created a potentially profitable setup in VTYX, 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 21.44 and a SELL short entry at 19.58. Let VTYX'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 3.16 gain. VTYX closed Tuesday at 20.46. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 1.042B. Not Optionable.
SpringWorks Therapeutics, Inc. (SWTX: Healthcare/Biotechnology) - SQUEEZE PLAY. Tuesday's trading action forced SWTX's daily price range into an abnormally narrow state. This translates into opportunity; for the cyclical nature of price volatility is to shrink extensively, then swell rapidly as shares move in one direction or another. Instead of trying to predict the direction SWTX will take when price volatility begins to increase, we'll set both a BUY (long) and a SELL (short) trigger to get us into the right trade. Be ready to BUY shares at 27.62 if SWTX moves higher, and place your order to SELL short at 25.43 if price declines to that level. As usual follow your entry with a trailing stop, 2.19 should be sufficient. Reduce your stop to 1.1 on a 6.3 gain. SWTX closed Tuesday at 26.83. Earnings Report Date: Nov 02, 2022. Beta: 0.82. Market-Cap: 1.327B. Optionable.
INDUSTRIALS SECTOR
Civeo Corporation (CVEO: Industrials/Specialty Business Services) - NEW HIGH DIP. You know a stock is performing well when it sets a new 52-week high. Such is the case with CVEO, which recently entered new-high territory before dipping lower the past few sessions. A rebound from Moving Average support on Tuesday indicates CVEO may be ready to resume its upward climb. Now sitting at 30.27, a move to 30.68 will trigger a BUY entry. Place a 2.45 trailing stop after entering and tighten it to 1.23 once you've gained 2.62. Earnings Report Date: Oct 26, 2022. Beta: 2.87. Market-Cap: 429.471M. Optionable.
AerSale Corporation (ASLE: Industrials/Airports & Air Services) - BULLISH BOUNCE. Positive price behavior near moving average support on Tuesday qualifies ASLE for a Bullish Bounce setup. After several sessions of declining prices, ASLE should soon begin trading in step with its established weekly uptrend. Tell your broker to BUY shares if ASLE moves up to our entry trigger set at 20.04. You can also enter a 1.19 trailing stop, to be replaced with a 0.6 trailing stop when you obtain a 1.24 profit. ASLE closed Tuesday at 19.70. Earnings Report Date: Nov 07, 2022. Beta: 0.50. Market-Cap: 1.019B. Optionable.
TECHNOLOGY SECTOR
PagerDuty, Inc. (PD: Technology/Software-Application) - SQUEEZE PLAY. A look at PD'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 27.29 and a SELL short trigger at 25.34. Once PD shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.95 and tighten to 0.98 on a 2.94 gain. PD closed Tuesday at 26.70. Earnings Report Date: Sep 01, 2022. Beta: 1.09. Market-Cap: 2.345B. 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
---------------- ------- -------- ------- ------ -------
Nasdaq Inc NDAQ 7/20/2022 8/29/2022 3-for-1 Yes
Tesla TSLA 8/5/2022 8/25/2022 3-for-1 Yes
Palo Alto Net PANW 8/23/22 9/14/22 3-for-1 Yes
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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