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December 6, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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Zeroing In: Fine-Tuning with Smaller Chart Intervals
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"QUICK LIST"
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Stock 12/06 12/06 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
VERV 21.07 -0.35 21.66 20.07 1.59/0.8 5.34
OM 21.40 -0.02 21.78 20.19 1.59/0.8 3.14
SEM 24.27 -0.03 24.82 23.28 1.54/0.77 2.62
CMBM 22.53 0.22 22.85 21.31 1.54/0.77 2.48
CNP 30.82 0.36 31.26 1.83/0.92 1.26
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 fell for a second day, as traders showed caution over inflation concerns and how aggressive the Fed Bank will be when setting interest rates in the near term. A light economic calendar presented only one notable report, which showed that the trade deficit increased less predicted. In equities, AutoZone (AZO $2,457) topped quarterly earnings estimates, while shares of Meta Platforms (META $114) dropped after the Wall Street Journal reported that European Union regulators said that META should not require users to agree to personalized ads based on their online activity. Oil and treasury yields were lower, the USD/dollar and gold advanced higher. Dec 5, 2022 Dec 6, 2022
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Dow 33,947.10 -482.78 33,596.34 -350.76
Nasdaq 11,239.94 -221.56 11,014.89 -225.05
S&P 500 3,998.84 -72.86 3,941.26 -57.58
NYSE Volume 4.29B 4.38B
NYSE Advancers 480 906
NYSE Decliners 2,693 2,231
Nasdaq Volume 4.52B 4.74B
Nasdaq Advancers 1,186 1,388
Nasdaq Decliners 3,476 3,226
New Highs/Lows
11/29 11/30 12/01 12/02 12/05 12/06
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NYSE New Highs 46 82 104 89 62 37
NYSE New Lows 68 66 25 44 55 114
Nasdaq New Highs 85 134 126 98 108 68
Nasdaq New Lows 189 218 107 128 169 312
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TRADER'S TIP:
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TRADER'S TIP: "Free Advice From TV Talking Heads" When it comes to financial advice, always remember that the brokerage firms who pay the advisors make most of their money from commissions on stock sales. It may only be a few bucks for each transaction, but it adds up to hundreds of billions of dollars. Though many analysts are well intended, a major purpose of their stock picks is to attract customers and generate order flow. Whether the recommendations are profitable or not really isn't that important - the companies make money whenever someone buys or sells shares. **************************
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 - 3941.26 December 6, 2022 52-Week High: 4818.62 52-Week Low: 3491.58 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4362.33 Resistance 2: 4199.47 Resistance 1: 4135.59 Pivot: 4036.62 Support 1: 3972.73 Support 2: 3873.76 Support 3: 3710.90 https://www.prorightline.com/rlch/120622SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, December 05, 2022: 05-Dec 9:45 am 05-Dec 10 am ISM services index 05-Dec 10 am Factory orders Tuesday, December 06, 2022: 06-Dec 8:30 am Trade deficit Wednesday, December 07, 2022: 07-Dec 8:30 am Productivity (SAAR) revision 07-Dec 8:30 am Unit labor costs (SAAR) revision 07-Dec 3 pm Consumer credit (level change) Thursday, December 08, 2022: 08-Dec 8:30 am Initial jobless claims 08-Dec 8:30 am Continuing jobless claims Friday, December 09, 2022: 09-Dec 8:30 am Producer price index final demand 09-Dec 10 am UMich consumer sentiment index (early) 09-Dec 10 am UMich 5-year inflation expectations (early) 09-Dec 10 am Wholesale inventories revision 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: "A Trader's Mind: Beliefs" "You experience what you believe, unless you believe you won't, in which case you don't, which means you did." - Harry Palmer ***********************************
STOCKS COVERED IN THIS ISSUE
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HEALTHCARE SECTOR Verve Therapeutics, Inc. (VERV: Healthcare/Biotechnology) - SQUEEZE PLAY. The ticker for Tuesday's session shows VERV 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 21.66 and a SELL short trigger at 20.07. When VERV 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 1.59 trailing stop. Upon reaching a 5.34 profit, resize the stop to 0.8. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 1.298B. Optionable. Outset Medical, Inc. (OM: Healthcare/Medical Devices) - SQUEEZE PLAY. Tuesday's trading session left OM 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 21.78 and your SELL short trigger at 20.19. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.59 trailing stop. Once you have a 3.14 profit, reduce the stop to 0.8. Earnings Report Date: Feb 14, 2023. Beta: 1.79. Market-Cap: 1.034B. Optionable. Select Medical Holdings Corporation (SEM: Healthcare/Medical Care Facilities) - SQUEEZE PLAY. Traders are feeling the pressure as SEM'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 24.82 and a SELL short entry at 23.28. SEM's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.54 trailing stop. Tighten it to 0.77 after you get a 2.62 gain. SEM closed Tuesday at 24.27. Earnings Report Date: Feb 22, 2023. Beta: 1.36. Market-Cap: 3.082B. Optionable. TECHNOLOGY SECTOR Cambium Networks Corporation (CMBM: Technology/Communication Equipment) - SQUEEZE PLAY. CMBM 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 22.85 and a SELL short entry at 21.31. Once your trade is filled, enter a 1.54 trailing stop. Tighten it to 0.77 after a 2.48 gain. CMBM closed on Tuesday at 22.53. Earnings Report Date: Feb 15, 2023. Beta: 0.89. Market-Cap: 629.583M. Optionable. UTILITIES SECTOR CenterPoint Energy, Inc. (CNP: Utilities/Utilities-Regulated Electric) - BULLISH BOUNCE. Entering a position in the early stages of a bounce is great way to get on board an up-trending stock. The "Bullish Bounce" setup identifies probable candidates by evaluating the trading action that takes place near support levels. CNP's behavior on Tuesday could very well be a sign that a new bounce is underway. Place a BUY trigger at 31.26. In the event your trigger is met, also place a 1.83 trailing stop which can be trimmed down to 0.92 when you have a 1.26 profit. CNP closed Tuesday at 30.82. Earnings Report Date: Feb 20, 2023. Beta: 0.87. Market-Cap: 19.402B. 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 ---------------- ------- -------- ------- ------ ------- Copart CPRT 11/4/2022 11/4/2022 2-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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