August 4, 2022 - The RightLine Report


Notes From The Editor

What's the best trading strategy around? While there are basic guidelines for profitable trading - effective risk management, for example - there is no one-size-fits-all blueprint for success in the market. This is because each individual trader is unique.

How often should you trade? What should you trade? How long should you hold positions? These are fundamental questions that only you can answer.

A lot depends on your own tolerance for risk and volatility. If you're the more conservative type, it would make sense to take longer-term positions in stocks that tend to be less volatile. Similarly, those who are willing to ramp up the risk/reward ratio may want to take shorter- term trades in stocks that see larger intraday swings.

Your approach to trading also depends on your lifestyle. Are you an early riser who's ready to tackle the market at the opening bell? Or would you prefer to make your trading decisions after the market closes, lining up entry and exit points after-hours? Does your schedule allow you to stick with the market throughout the trading session, moving in and out of positions during the day? Or are you otherwise occupied, and unable to watch stocks on an intra-session basis?

If you have a desire to trade, but find yourself struggling to integrate trading into your life, ask yourself these questions. By custom-tailoring a strategy that fits with you, you'll find yourself in a much better position to squeeze profits out of stocks.

No matter what unique approach you choose, solid risk management and stock selection can greatly boost your chances of success. But those odds will move even more in your favor if you align your trading strategy with your schedule and your life. Remember: the market will always be there. Make it work for you on your terms.

Here's to profits,

Kent Barton
Senior Analyst

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

Quick List

Stock     08/04     08/04      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

CLAR      20.32     -0.32     21.01     19.22         1.79/0.9      2.18
BLNK      22.50      0.43     22.97     21.35        1.62/0.81      2.48
CVEO      27.33     -0.33      28.2     26.42        1.78/0.89      1.98
BMBL      35.81      0.22     36.74     33.92        2.82/1.41      4.12
SIX       23.98      0.11     24.44     22.78        1.66/0.83      2.48

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.

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

Market Summary

Stocks closed mixed on Thursday, as the Dow Jones Industrial Average and the S&P 500 Index finished lower, while the Nasdaq Composite was higher. Earnings annuncements continued to pour in, with Kellogg (K $74) topping quarterly forecasts and delivering upbeat guidance, while Eli Lilly (LLY $306) fell short of expectations and lowered its outlook. The economic calendar reported jobless claims are moving higher ahead of Friday's labor report, while the US trade deficit shrunk by more than expected. The USD/dollar and oil prices were lower, gold and treasuries were higher, putting downward pressure on yields.

                        Aug 3, 2022            Aug 4, 2022    
                  --------------------   --------------------
Dow                 32,812.50   416.33     32,726.82   -85.68
Nasdaq              12,668.16   319.40     12,720.58    52.42
S&P 500              4,155.17    63.98      4,151.94    -3.23

NYSE Volume                      4.42B                  4.33B
NYSE Advancers                   2,242                  1,521
NYSE Decliners                     973                  1,673

Nasdaq Volume                    5.68B                  5.42B
Nasdaq Advancers                 3,373                  2,655
Nasdaq Decliners                 1,302                  1,906

                                 New Highs/Lows

                   07/28  07/29  08/01  08/02  08/03  08/04
NYSE New Highs        44     42     41     35     25     29
NYSE New Lows         50     46     48     32     36     37
Nasdaq New Highs      84     91     80     52     54     68
Nasdaq New Lows      131    121    118     95     57     51

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

TRADER'S TIP: "Moving Averages and the Law of Attraction"

All significant Daily Moving Averages - like the 50, 100 and 200 - act as magnets. Watch out when price begins to gain momentum toward a well known DMA. Once the action moves within a Moving Average's "gravitational field," just leave it up to the laws of physics - contact is almost inevitable.

The Technical Analyst

SPX Daily Chart

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 - 4151.94 August 4, 2022

52-Week High: 4818.62
52-Week Low: 3636.85
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 4519.21
Resistance 2: 4289.80
Resistance 1: 4210.04
Pivot: 4060.39
Support 1: 3980.63
Support 2: 3830.98
Support 3: 3601.57

NASDAQ Composite - 12720.58 August 4, 2022

52-Week High: 16212.23
52-Week Low: 10565.14
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 13902.55
Resistance 2: 13009.66
Resistance 1: 12700.17
Pivot: 12116.77
Support 1: 11807.28
Support 2: 11223.88
Support 3: 10330.99
Dow Industrials - 32726.82 August 4, 2022

52-Week High: 36952.65
52-Week Low: 29653.27
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 34896.53
Resistance 2: 33691.71
Resistance 1: 33268.42
Pivot: 32486.89
Support 1: 32063.60
Support 2: 31282.07
Support 3: 30077.25

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

Market Calendar

ECONOMIC REPORTS AND EVENTS (all times are Eastern):    

Wednesday, August 03, 2022:
03-Aug  9:45 am   
03-Aug  10 am   ISM services index
03-Aug  10 am   Factory orders
03-Aug  10 am   Core capital equipment orders (revision)
03-Aug  10 am   Rental vacancy rate
03-Aug  10 am   Homeowner vacancy rate

Thursday, August 04, 2022:
04-Aug  8:30 am   Initial jobless claims
04-Aug  8:30 am   Continuing jobless claims
04-Aug  8:30 am   Trade deficit

Friday, August 05, 2022:
05-Aug  8:30 am   Nonfarm payrolls
05-Aug  8:30 am   Unemployment rate
05-Aug  8:30 am   Average hourly earnings
05-Aug  8:30 am   Labor-force participation rate, ages 25-54

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

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

TRADER'S TIP: "The Market Weather"

The market is much like the weather - we all know that it's pointless to try and change it. On the other hand, we can always adjust our sails to take advantage of the prevailing winds.

Stocks Covered in This Issue


Clarus Corporation (CLAR: Consumer Cyclical/Leisure) - SQUEEZE PLAY. Sometimes when Bulls and Bears face off in the market arena for a typical day-long battle, there is no clear winner. This is evident when the daily price range contracts to an unusually narrow state. CLAR found itself in this condition on Thursday when neither buyers or sellers were able to push ahead. This setup provides traders a chance to hop on board the next breakout - whether it's to the upside or down - with little risk of loss. To do this place a BUY order at 21.01 and a SELL short trigger at 19.22. When CLAR moves outside of Thursday's range, one of the orders will be filled. Once you hold a position of shares, cancel the unfilled order and place a 1.79 trailing stop. After you've got a 2.18 profit, tighten the stop to 0.9. CLAR closed at 20.32 on Thursday. Earnings Report Date: N/A. Beta: 0.95. Market-Cap: 769.303M. Optionable.


Blink Charging Co. (BLNK: Industrials/Engineering & Construction) - SQUEEZE PLAY. BLNK shareholders know what it feels like to be squeezed. Thursday's slim price range reveals uncertainty on both sides of the table, a situation which often resolves itself by either Bears or Bulls quickly gaining a clear advantage. The question is "who will win?" Near-term market action tell us whether we should sell short or we should buy shares instead. BLNK closed Thursday at 22.50. The plan is to enter in the right direction by placing a BUY trigger at 22.97 and a SELL short trigger at 21.35. Once BLNK establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.62. After you've collected a 2.48 profit, tighten the stop to 0.81. Earnings Report Date: Aug 08, 2022. Beta: 3.76. Market-Cap: 1.129B. Optionable.

Civeo Corporation (CVEO: Industrials/Specialty Business Services) - SQUEEZE PLAY. Thursday's trading session left CVEO 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 28.2 and your SELL short trigger at 26.42. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.78 trailing stop. Once you have a 1.98 profit, reduce the stop to 0.89. Earnings Report Date: Oct 26, 2022. Beta: 2.93. Market-Cap: 387.116M. Optionable.


Bumble Inc. (BMBL: Technology/Software-Application) - SQUEEZE PLAY. BMBL 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 36.74 and a SELL short entry at 33.92. Once your trade is filled, enter a 2.82 trailing stop. Tighten it to 1.41 after a 4.12 gain. BMBL closed on Thursday at 35.81. Earnings Report Date: Aug 10, 2022. Beta: N/A. Market-Cap: 6.611B. Optionable.


Six Flags Entertainment Corporation (SIX: N/A/N/A) - SQUEEZE PLAY. The ticker for Thursday's session shows SIX 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 24.44 and a SELL short trigger at 22.78. When SIX 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 1.66 trailing stop. Upon reaching a 2.48 profit, resize the stop to 0.83. Earnings Report Date: Aug 11, 2022. Beta: 2.21. Market-Cap: 2.073B. 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.

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
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  
---------------- -------     --------    -------     ------  -------   
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    

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.

RightLine Risk Control Calculator 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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