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December 30, 2021 - The RightLine Report
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NOTES FROM THE EDITOR
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The Market ... Up or Down?
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"QUICK LIST"
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Stock 12/30 12/30 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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XPOF 20.33 0.18 21.04 19.39 1.65/0.83 3.58
PFE 58.41 0.82 59.51 3.72/1.86 4.52
ACAD 23.54 -0.42 24.52 22.8 1.72/0.86 2.5
KRON 14.30 0.17 14.87 13.58 1.29/0.65 2.14
RELY 20.70 0.26 21.19 19.46 1.73/0.87 3.44
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 were slightly lower on Thursday, with the S&P 500 just short of a new record high for the 71st time in 2021. In the background, the market continues to deal with the Fed's recent decision to tighten its monetary campaign despite ongoing inflation pressure. Economic headlines featured a drop in new unemployment claims as continuing claims reached a post-pandemic low, and Chicago manufacturing activity accelerated more than predicted. In equities, Micron Technology (MU $94) share prices dipped after the company warned of production disruptions due to lockdowns in China, while Biogen (BIIB $240) shares also fell after Samsung denied reports that it was in talks to buy the drug manufacturer. Oil, the USD/dollar, treasuries and gold prices all advanced higher. Dec 29, 2021 Dec 30, 2021
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Dow 36,488.63 90.42 36,398.08 -90.55
Nasdaq 15,766.22 -15.51 15,741.56 -24.65
S&P 500 4,793.06 6.71 4,778.73 -14.33
NYSE Volume 3B 3.15B
NYSE Advancers 1,875 1,857
NYSE Decliners 1,481 1,490
Nasdaq Volume 3.71B 3.74B
Nasdaq Advancers 1,915 2,754
Nasdaq Decliners 2,727 1,904
New Highs/Lows
12/23 12/23 12/27 12/28 12/29 12/30
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NYSE New Highs 102 101 134 167 157 164
NYSE New Lows 28 28 43 62 89 55
Nasdaq New Highs 80 80 130 157 126 108
Nasdaq New Lows 122 121 198 319 447 179
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TRADER'S TIP:
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TRADER'S TIP: "Try a Few Diamonds and Spiders!" If you are new to shorting, a good place to start is with index "stocks" like QQQ (NASDAQ 100 Trust), DIA (Dow Diamonds), or SPY (Spiders). While they aren't actually "stocks," these popular instruments are widely traded in virtually the same fashion. However, there is one distinct advantage. Unlike individual stocks, each index "stock" represents a broad list of securities. The DIA includes 30 stocks, the QQQ contains 100, and the SPY consists of 500. As a result, trading this type of index security lowers the risk associated with holding positions in specific companies. **************************
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 - 4778.73 December 30, 2021 52-Week High: 4808.93 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/123021SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 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 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: "Hurry, Hurry, Step Right Up!" Don't pay much attention to all the hype from brokerage analysts or the business media. Brokerage firms usually have more than just a casual interest in stocks they tout, and many times so does the media. ***********************************
STOCKS COVERED IN THIS ISSUE
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CONSUMER CYCLICAL SECTOR Xponential Fitness, Inc. (XPOF: Consumer Cyclical/Leisure) - SQUEEZE PLAY. XPOF 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. XPOF closed Thursday at 20.33. The plan is to enter in the right direction by placing a BUY trigger at 21.04 and a SELL short trigger at 19.39. Once XPOF establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.65. After you've collected a 3.58 profit, tighten the stop to 0.83. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 485.846M. Optionable. HEALTHCARE SECTOR Pfizer Inc. (PFE: Healthcare/Drug Manufacturers-General) - BULLISH BOUNCE. Some people hear of a stock that's performing nicely and then buy it without any regard for timing the entry. This approach usually leaves money on the table, money that could just as well be added to profits. The Bullish Bounce setup provides a well timed entry and reduces exposure to risk by placing both the entry trigger and exit stop near the bottom of the bounce. We have an opportunity to use this approach with PFE which met our setup criteria on Thursday. The BUY trigger for this trade is at 59.51, and the trailing stop is sized at 3.72. Resize the stop to 1.86 upon collecting a 4.52 point gain. PFE closed Thursday at 58.41. Earnings Report Date: Feb 08, 2022. Beta: 0.62. Market-Cap: 327.848B. Optionable. ACADIA Pharmaceuticals Inc. (ACAD: Healthcare/Biotechnology) - SQUEEZE PLAY. Thursday's trading session left ACAD 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 24.52 and your SELL short trigger at 22.8. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.72 trailing stop. Once you have a 2.5 profit, reduce the stop to 0.86. Earnings Report Date: Feb 22, 2022. Beta: 0.57. Market-Cap: 3.784B. Optionable. Kronos Bio, Inc. (KRON: Healthcare/Biotechnology) - SQUEEZE PLAY. KRON 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 14.87 and a SELL short entry at 13.58. Once your trade is filled, enter a 1.29 trailing stop. Tighten it to 0.65 after a 2.14 gain. KRON closed on Thursday at 14.30. Earnings Report Date: Mar 21, 2022. Beta: N/A. Market-Cap: 805.766M. Optionable. TECHNOLOGY SECTOR Remitly Global, Inc. (RELY: Technology/Software-Infrastructure) - SQUEEZE PLAY. The ticker for Thursday's session shows RELY 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 21.19 and a SELL short trigger at 19.46. When RELY 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 1.73 trailing stop. Upon reaching a 3.44 profit, resize the stop to 0.87. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 3.397B. 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 ---------------- ------- -------- ------- ------ ------- 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/ ======================================================================
Best of luck and have a Great Week!
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