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February 16, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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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.
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"QUICK LIST"
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Stock 02/16 02/16 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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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" 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 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
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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
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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
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TRADER'S TIP:
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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
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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 - 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 https://www.prorightline.com/rlch/021623SPX.jpg--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" 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: "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
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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 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 ---------------- ------- -------- ------- ------ ------- 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. 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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