February 16, 2023 - The RightLine Report
Notes From The Editor
Every experienced trader knows that volatile price movement is a common aspect of trading. Although roller-coaster market action isn't always welcome, it creates plenty of opportunity.
Price movement is a trader's best friend, even though it doesn't always occur in our preferred direction or at our desired pace. Without it there would be no losers, no winners, and no profits. Luckily, every sell-off eventually bounces, and every rally eventually reverses into a decline.
Trading these slopes requires training and experience. State of the art tools and fast broadband connections make the job much easier than just a few years ago. Of course, having the tools and knowing how to use them successfully are two different things.
It takes patience and discipline to gain the necessary education and skills. However, with the right attitude and persistence, just about anyone can improve their personal earnings.
Playing the Trading Game -
A trader's first objective should be to STAY in the game long enough to learn how to PLAY the game. The RightLine Risk Control system let's traders accomplish this by providing a safe trading environment regardless of market conditions.
Another important objective is to eliminate any distracting focus on money. You can overcome the tendency to keep your eyes glued to the cash on the table by seriously reducing the number of shares held in each position.
At some point along the way you realize that money is simply a result of learning to play the game well. To play the game well is to consistently score new points while protecting accumulated points. Traders who learn the needed skills and maintain the mindset always welcome volatile price movement because it allows points to be scored faster.
Trade well,
~ Thomas Sutton, Editor
Stocks Covered Today Stock Splits
Quick List
Stock 02/16 02/16 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
ETD 29.65 -0.16 30.3 1.89/0.95 2.06
IRON 23.86 0.06 24.28 22.31 1.97/0.99 3.34
ANAB 25.95 -0.23 26.71 25 1.71/0.86 2.76
ZIM 21.25 -0.21 21.79 20.46 1.33/0.67 1.76
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 were sharply lower on Thursday after the release of January's Producer Price Index (PPI) showing inflation is higher than anticipated, plus commentary from Fed officials which seemed to indicate further monetary policy tightening may be in the works. The economic calendar included fewer jobless claims than predicted, a surprise decline in Philadelphia manufacturing, along with soft housing construction activity. In equities, Shopify (SHOP $45) and Cisco Systems (CSCO $51) topped profit forecasts, though Shopify offered disappointing revenue guidance, and Paramount fell short of projections. The USD/dollar and treasury yields were higher, oil prices were lower, gold finished near even.
Feb 15, 2023 Feb 16, 2023
-------------------- --------------------
Dow 34,128.05 38.78 33,696.85 -431.20
Nasdaq 12,070.59 110.45 11,855.83 -214.76
S&P 500 4,147.60 11.47 4,090.41 -57.19
NYSE Volume 4.08B 4.15B
NYSE Advancers 1,780 801
NYSE Decliners 1,297 2,264
Nasdaq Volume 5.06B 5.19B
Nasdaq Advancers 2,885 1,498
Nasdaq Decliners 1,658 3,069
New Highs/Lows
02/09 02/10 02/13 02/14 02/15 02/16
--------------------------------------------
NYSE New Highs 87 42 87 102 84 80
NYSE New Lows 10 15 13 12 7 15
Nasdaq New Highs 93 61 82 86 91 96
Nasdaq New Lows 67 82 67 83 63 67
Stocks Covered Today Stock Splits
TRADER'S TIP: "Trading vs. Gambling"
The biggest difference between trading and gambling is that gamblers focus more attention on favorable outcomes while traders focus more attention on losing outcomes. As a result, gamblers end up losing big while traders avoid it.
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 - 4090.41 February 16, 2023
52-Week High: 4637.30
52-Week Low: 3491.58
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 4340.76
Resistance 2: 4225.01
Resistance 1: 4157.73
Pivot: 4109.26
Support 1: 4041.98
Support 2: 3993.51
Support 3: 3877.76
NASDAQ Composite - 11855.83 February 16, 2023
52-Week High: 14646.90
52-Week Low: 10088.83
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 12872.31
Resistance 2: 12352.64
Resistance 1: 12035.38
Pivot: 11832.96
Support 1: 11515.70
Support 2: 11313.28
Support 3: 10793.60
Dow Industrials - 33696.85 February 16, 2023
52-Week High: 35492.22
52-Week Low: 28660.94
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 35225.76
Resistance 2: 34565.18
Resistance 1: 34217.22
Pivot: 33904.60
Support 1: 33556.64
Support 2: 33244.02
Support 3: 32583.44
Stocks Covered Today Stock Splits
Market Calendar
ECONOMIC REPORTS AND EVENTS (all times are Eastern): Friday, February 17, 2023: 17-Feb 8:30 am Import price index 17-Feb 10 am Index of leading economic indicators Monday, February 20, 2023: 13-Feb 11 am NY Fed 1-year inflation expectations 13-Feb 11 am NY Fed 5-year inflation expectations Tuesday, February 21, 2023: 14-Feb 6 am NFIB small-business index 14-Feb 8:30 am Consumer price index 14-Feb 8:30 am Core CPI 14-Feb 8:30 am CPI (year-over-year) 14-Feb 8:30 am Core CPI (year-over-year) Wednesday, February 22, 2023: 15-Feb 8:30 am Retail sales 15-Feb 8:30 am Retail sales excluding motor vehicles 15-Feb 8:30 am Empire state manufacturing index 15-Feb 9:15 am Industrial production index 15-Feb 9:15 am Capacity utilization rate 15-Feb 10 am NAHB home builders' index 15-Feb 10 am Business inventories Thursday, February 23, 2023: 16-Feb 8:30 am Initial jobless claims 16-Feb 8:30 am Continuing jobless claims 16-Feb 8:30 am Producer price index final demand 16-Feb 8:30 am Building permits 16-Feb 8:30 am Housing starts 16-Feb 8:30 am Philadelphia Fed manufacturing survey 16-Feb 11 am Real household debt (SAAR) 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: "More on Bases and Consolidations"
Rule of thumb - the longer the sideways action, the bigger the move when price does finally break out in one direction or the other.
Stocks Covered in This Issue
CONSUMER CYCLICAL SECTOR
Ethan Allen Interiors Inc. (ETD: Consumer Cyclical/Furnishings, Fixtures & Appliances) - BULLISH BOUNCE. Another bullish bouncer, ETD appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Thursday's positive price action near Moving Average support says it's time to BUY shares if ETD reaches our entry trigger set at 30.3. Also place a 1.89 trailing stop which can be narrowed to 0.95 when you reach a 2.06 profit. ETD closed Thursday at 29.65. Earnings Report Date: Apr 26, 2023. Beta: 1.21. Market-Cap: 751.562M. Optionable.
HEALTHCARE SECTOR
Disc Medicine, Inc. (IRON: Healthcare/Biotechnology) - SQUEEZE PLAY. Thursday's trading session left IRON 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 24.28 and your SELL short trigger at 22.31. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.97 trailing stop. Once you have a 3.34 profit, reduce the stop to 0.99. Earnings Report Date: Mar 08, 2023. Beta: N/A. Market-Cap: 415.298M. Optionable.
AnaptysBio, Inc. (ANAB: Healthcare/Biotechnology) - SQUEEZE PLAY. ANAB 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 26.71 and a SELL short entry at 25. Once your trade is filled, enter a 1.71 trailing stop. Tighten it to 0.86 after a 2.76 gain. ANAB closed on Thursday at 25.95. Earnings Report Date: Mar 06, 2023. Beta: -0.15. Market-Cap: 737.8M. Optionable.
INDUSTRIALS SECTOR
ZIM Integrated Shipping Services Ltd. (ZIM: Industrials/Marine Shipping) - SQUEEZE PLAY. The ticker for Thursday's session shows ZIM 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 21.79 and a SELL short trigger at 20.46. When ZIM 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 1.33 trailing stop. Upon reaching a 1.76 profit, resize the stop to 0.67. Earnings Report Date: Mar 07, 2023. Beta: 2.12. Market-Cap: 2.551B. 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
---------------- ------- -------- ------- ------ -------
NOTE: The number of stock split announcments goes up during Bull markets,
and goes down during Bear market cycles. There are currently no upcoming
stock splits that meet RightLine's proprietary criteria for split ratio,
trading volume and price action.
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.
Disclaimer
The RightLine Report is an information service for investors and traders. It is not a solicitation nor a recommendation or offer to buy or sell securities. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. The publishers of The RightLine Report are not brokers or financial advisors, and are not acting in any way to influence the purchase or sale of any security. Stock picks, entry points and exit points should be considered an information resource to assist the trader in developing a trading plan and it is the sole responsibility of the reader to conduct his or her own due diligence before executing a trade. Trading securities should be considered speculative with a high degree of volatility and risk.
The publishers of The RightLine Report recommend that anyone trading securities should do so with caution, exercise prudent trading discipline and have a personal risk management strategy in place before doing so. It is possible at this or some subsequent date, the publishers and staff of The Pro Right Line Corp. may own, buy or sell securities presented. The Pro Right Line Corp. is not a financial advisory service. Its publishers, owners or investors, are not liable for any losses or damages, monetary or otherwise, that result from the content of The RightLine Report. Past RightLine Report performance may not be indicative of future performance.
All subscriptions and/or use of the RightLine.net website are subject to RightLine's "Terms of Use" and "Subscriber Terms & Conditions" which are posted at www.rightline.net.
Any REDISTRIBUTION of the above information, without The RightLine's written consent, is STRICTLY PROHIBITED.
Copyright / The Pro Right Line Corporation - All Rights Reserved
Click Here To Unsubscribe