December 28, 2021 - The RightLine Report 

 
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                      NOTES FROM THE EDITOR
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Say Hello To Your Perspective

There's a strong tendency for each one of us to believe that the way WE view the world is the way everyone else views the world, or perhaps SHOULD view it. We don't really think about this, we just assume it. The inclination to feel that our perspective is the only one that matters begins in early childhood. Once in place, it strongly influences all of our actions.

Unfortunately this typically limits awareness by filtering out other significant points of view. However if we're lucky we eventually become aware of two important things:

1) We have our own unique perspective

2) We can change our perspective if we choose.

The Early Days ...

Think about how a ten-month old child views the world. If they see something they want, they reach for it. If mom or dad says "no, that's not good for you," the baby ignores them and reaches for it anyway. That's because the baby doesn't have enough experience to know what's good and what isn't. Mom and Dad do know because they have much more experience.

After a certain amount of pain and suffering a young toddler begins to accept the parent's point of view. However since the parent's perspective is just too complex for a child, the youngster thinks much of it is just unnecessary noise. As a result, the child's programming is a mix of baby and parent perspective. Attitudes and actions are created around this perspective. Years later the young person has grown up to be an adult trader. However, deep down inside, many of the child's attitudes still exist.

Not only do these attitudes exist in memory, they have a powerful affect on the adult's behavior. It's often said, "the boy is the father of the man." The child has been around much longer than the adult trader. So guess who usually wins if there is a conflict between self-destructive babyish attitudes and a mature trader mind-set?

"Give it to me!"

The kid in us just wants the money ... or candy ... now! The mature trader says "hang on, there are some things we need to do in order to get the money." Let's hope that patience prevails, because putting too much attention on the money is the WORST thing a trader can do.

If you sometimes struggle with excessive thoughts of money, you can relax ... that's normal for a time. However, to be truly successful you'll have to change the way you think about wealth.

Most people begin their trading journey by focusing way too much on the potential financial gains. Though it's the most common way to start, it isn't the best way. You can bet that the carrot-on-the-stick holding our attention will always be just beyond our reach until we change our perspective.

Bottom Line: The ability to choose our perspective is a powerful skill that opens doors to better opportunities. When we choose how we view things, we can choose the best view. It's like choosing the best seat at a sporting event instead of being stuck with whatever place we're given.

That's enough trader talk for now, in the near future we'll take a look at two of the most important resources we have ... our attitudes and our actions.

Trade well,

- Thomas Sutton, Editor 

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                           "QUICK LIST"
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Stock     12/28     12/28      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

TBBK      25.05     -0.34     25.91     24.27        1.64/0.82      2.64
TRHC      14.23      0.13     14.64                  1.32/0.66      2.32
RPTX      21.48     -0.02               20.75        2.18/1.09      4.68
FDMT      21.54     -0.26               20.78        2.01/1.01      2.84
ALKT      20.03      0.01     20.58     19.27        1.31/0.66         0


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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The major US stock indices were mixed on Tuesday as the S&P 500 and Dow set new intra-day highs, while the Nasdaq Comp finished the session lower. A light economic calendar showed housing prices moved higher during October, and the Richmond Fed Manufacturing Survey topped forecasts. Oil prices and the USD/dollar advanced upward, gold dipped modestly, treasuries were mixed.


                       Dec 27, 2021           Dec 28, 2021   
                  --------------------   --------------------
Dow                 36,302.38   351.82     36,398.21    95.83
Nasdaq              15,871.26   217.89     15,781.72   -89.54
S&P 500              4,791.19    65.40      4,786.35    -4.84

NYSE Volume                      2.88B                  2.73B
NYSE Advancers                   2,283                  1,610
NYSE Decliners                   1,084                  1,744

Nasdaq Volume                    3.74B                  3.62B
Nasdaq Advancers                 2,462                  1,612
Nasdaq Decliners                 2,252                  3,064

                                 New Highs/Lows

                   12/21  12/22  12/23  12/23  12/27  12/28
                 --------------------------------------------
NYSE New Highs        43     59    102    101    134    167
NYSE New Lows         61     56     28     28     43     62
Nasdaq New Highs      42     58     80     80    130    157
Nasdaq New Lows      168    137    122    121    198    319

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                              TRADER'S TIP:  
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TRADER'S TIP: "Trading Twenty-four Seven?"

Smart traders pick their spots. You don't have to trade continuously, nor should you. Being prepared for an opportunity means knowing about it in advance, which means staying informed - even when you aren't holding a position. 
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                         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 - 4786.35 December 28, 2021

52-Week High: 4807.02
52-Week Low: 3662.71
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 5085.22
Resistance 2: 4875.55
Resistance 1: 4800.66
Pivot: 4665.88
Support 1: 4590.99
Support 2: 4456.21
Support 3: 4246.54
https://www.prorightline.com/rlch/122821SPX.jpg

NASDAQ Composite - 15781.72 December 28, 2021

52-Week High: 16212.23
52-Week Low: 12397.05
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 17079.67
Resistance 2: 16241.73
Resistance 1: 15947.54
Pivot: 15403.79
Support 1: 15109.60
Support 2: 14565.85
Support 3: 13727.91


Dow Industrials - 36398.21 December 28, 2021

52-Week High: 36565.73
52-Week Low: 29856.30
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 38349.99
Resistance 2: 36954.50
Resistance 1: 36452.53
Pivot: 35559.01
Support 1: 35057.04
Support 2: 34163.53
Support 3: 32768.04


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                             MARKET CALENDAR
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--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
Monday, December 27, 2021:
27-Dec          None scheduled

Tuesday, December 28, 2021:
28-Dec   9 am   

Wednesday, December 29, 2021:
29-Dec  8:30 am   Trade in goods, advance report
29-Dec  10 am   Pending home sales index

Thursday, December 30, 2021:
30-Dec  8:30 am   Initial jobless claims (regular state program)
30-Dec  8:30 am   Continuing jobless claims (regular state program)
30-Dec  9:45 am   Chicago PMI

Friday, December 31, 2021:
31-Dec          New Year's holiday. 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: "Mistakes"

"The greatest mistake you can make in life is to be continually fearing you will make one."

~ Elbert Hubbard 

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                      STOCKS COVERED IN THIS ISSUE    
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FINANCIAL SERVICES SECTOR

The Bancorp, Inc. (TBBK: Financial Services/Banks-Regional) - 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. TBBK found itself in this condition on Tuesday 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 25.91 and a SELL short trigger at 24.27. When TBBK moves outside of Tuesday's range, one of the orders will be filled. Once you hold a position of shares, cancel the unfilled order and place a 1.64 trailing stop. After you've got a 2.64 profit, tighten the stop to 0.82. TBBK closed at 25.05 on Tuesday. Earnings Report Date: Jan 26, 2022. Beta: 1.47. Market-Cap: 1.427B. Optionable.

HEALTHCARE SECTOR

Tabula Rasa HealthCare, Inc. (TRHC: Healthcare/Health Information Services) - BULLISH BOUNCE. Everyone familiar with price charts knows that a stock tends to bounce its way higher rather than move in a straight line. The lower levels of these short-term rebounds offer a safe and often early entry into stocks that are in the process of establishing longer-term uptrends. TRHC's reaction to support on Tuesday created a Bullish Bounce setup with a BUY entry trigger at 14.64. Use a 1.32 trailing stop, which should work well with TRHC's typical daily range. Tighten it to 0.66 on a 2.32 profit. TRHC closed at 14.23 on Tuesday. Earnings Report Date: Feb 21, 2022. Beta: 0.98. Market-Cap: 365.977M. Optionable.

Repare Therapeutics Inc. (RPTX: Healthcare/Biotechnology) - BEARISH U-TURN. A quick look at the charts for RPTX show that despite the upward pressure caused by recent buying, the weekly downtrend is still in place. Tuesday's chart shows a potential return to that downtrend is in the works. This Bearish U-Turn set-up offers a potential entry point for a SHORT play. Set your trigger to SELL shares at 20.75, and follow your entry with a trailing stop of 2.18. Tighten the stop to 1.09 after reaching a 4.68 profit. RPTX ended the latest session at 21.48. Earnings Report Date: Mar 02, 2022. Beta: N/A. Market-Cap: 896.47M. Optionable.

4D Molecular Therapeutics, Inc. (FDMT: Healthcare/Biotechnology) - BEARISH U-TURN. This short setup turns common stock behavior into profits. Grounded in the tendency for down-trending stocks to bounce briefly and then return to the familiar down-trend, the Bearish U-Turn points traders to weak stocks when conditions are calling for more downward price action. FDMT's behavior on Tuesday near moving average support signals a potential SELL short entry at 20.78, followed by a 2.01 trailing stop which can be tightened to 1.01 upon earning 2.84. FDMT closed Tuesday at 21.54. Earnings Report Date: Mar 23, 2022. Beta: N/A. Market-Cap: 692.27M. Optionable.

TECHNOLOGY SECTOR

Alkami Technology, Inc. (ALKT: Technology/Software-Application) - SQUEEZE PLAY. ALKT traders on both sides of the fence are now locked in a head-to-head shootout. Tuesday's price range was the narrowest in over a week, as neither Bears or Bulls have been able to clearly gain the upper hand. This gives us an opportunity to catch the next directional move with little risk of loss. To do this we'll place both a long and a short trigger with a BUY at 20.58 and a SELL short trigger at 19.27. When one of the orders is filled, cancel the remaining order and enter a 1.31 trailing stop. When you've reached a 0 paper profit, tighten the stop to 0.66. ALKT closed at 20.03 on Tuesday. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 1.766B. 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/ 

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                           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  
---------------- -------     --------    -------     ------  -------   
Arista Networks   ANET      11/1/2021   11/18/2021  4-for-1   Yes
ePlus             PLUS      11/9/2021   12/14/2021  2-for-1   Yes
NAPCO Security    NSSC      12/8/2021   1/5/2022    2-for-1   Yes
AeroCentury Corp  ACY       12/17/2021  1/10/2021   5-for-1   No 
Merchants Bancorp MBIN      11/17/2021  1/18/2022   2-for-1   No

For a closer look at the different stages of a Stock Split go to: https://prorightline.com/index.php/trading-stock-splits-stages/ 
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Best of luck and have a Great Week!
 
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