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February 28, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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"I think I'll remove my stop and give this trade some more room ..."
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"QUICK LIST"
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Stock 02/28 02/28 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
MSB 25.48 0.97 26.34 3.19/1.6 2.48
LAC 23.59 -0.18 24.23 22.74 1.49/0.75 2.44
ACRV 20.32 1.31 21 18.23 2.77/1.39 4.86
ISEE 20.78 0.23 21.28 19.89 1.39/0.7 2.02
TCX 23.12 -0.27 24.13 22.21 1.92/0.96 3.56
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 lower on Tuesday following the release of mixed economic reports that included a wider than expected trade deficit, a drop in home prices compared to the previous month, and an unexpected decline in wholesale inventories. In addition, Additionally, manufacturing activity in the Chicago region and consumer confidence unexpectedly declined. In equities, Zoom Video Communications (ZM $75) beat profit forecasts but announced mixed guidance, while Target (TGT $168) topped estimates but offered a disappointing outlook. Gold, oil prices and the USD/dollar finished the session higher, treasury yields were near even. Feb 27, 2023 Feb 28, 2023
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Dow 32,889.09 72.17 32,656.70 -232.39
Nasdaq 11,466.98 72.04 11,455.54 -11.44
S&P 500 3,982.24 12.20 3,970.15 -12.09
NYSE Volume 3.85B 5.12B
NYSE Advancers 1,844 1,454
NYSE Decliners 1,240 1,568
Nasdaq Volume 4.52B 5.41B
Nasdaq Advancers 2,647 2,243
Nasdaq Decliners 1,892 2,213
New Highs/Lows
02/21 02/22 02/23 02/24 02/27 02/28
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NYSE New Highs 38 32 57 44 72 80
NYSE New Lows 29 34 28 47 25 36
Nasdaq New Highs 50 46 83 60 100 104
Nasdaq New Lows 131 122 130 169 102 102
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TRADER'S TIP:
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TRADER'S TIP: "Earnings Season Just Ahead - Playing the Pre-Earnings Run" Every few months there are companies that pre-announce BETTER-than expected upcoming earnings, and consequently their stock tends to ramp up as the announcement date approaches. Traders can take advantage of these pre-earnings runs by looking at earnings history and a company's record for beating Wall Street estimates. Combine this with current sentiments on the specific sector as well as recent news on "sympathy stocks," and this type of information provides some insight as to where pre-earnings runs may develop. Just remember that very often a key part of playing the run is to exit prior to the actual announcement, locking in profits BEFORE the Street has a chance to react to the numbers. Oftentimes, shares turn sharply lower immediately following the announcement, regardless of the numbers, as traders rush to take profits. **************************
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 - 3970.15 February 28, 2023 52-Week High: 4637.30 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 4275.23 Resistance 2: 4136.73 Resistance 1: 4053.38 Pivot: 3998.23 Support 1: 3914.88 Support 2: 3859.73 Support 3: 3721.23 https://www.prorightline.com/rlch/022823SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, February 27, 2023: 27-Feb 8:30 am Durable goods orders 27-Feb 8:30 am Core orders 27-Feb 10 am Pending home sales Tuesday, February 28, 2023: 28-Feb 8:30 am Advanced U.S. trade balance 28-Feb 8:30 am Advanced retail inventories 28-Feb 8:30 am Advanced wholesale inventories 28-Feb 9:45 am Chicago Business Barometer 28-Feb 10 am Consumer Confidence 28-Feb WEDNESDAY, MARCH 1 Wednesday, March 01, 2023: 01-Mar 10 am ISM manufacturing 01-Mar 10 am Construction spending 01-Mar Auto sales 01-Mar THURSDAY, MARCH 2 Thursday, March 02, 2023: 02-Mar 8:30 am Initial jobless claims 02-Mar 8:30 am Productivity (revision) 02-Mar FRIDAY, MARCH 3 Friday, March 03, 2023: 03-Mar 10 am ISM services 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: "Skepticism Getting In The Way Of Opportunity?" There is a joke about an economics professor who is walking in New York with a friend. His friend notices a $100 bill on the sidewalk and points to the bill and says, "Look professor, a $100 bill." The professor replies, "No, that can not be so. If that was a $100 bill somebody would have picked it up already." ***********************************
STOCKS COVERED IN THIS ISSUE
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BASIC MATERIALS SECTOR Mesabi Trust (MSB: Basic Materials/Steel) - BULLISH BOUNCE. Another bullish bouncer, MSB appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Tuesday's positive price action near Moving Average support says it's time to BUY shares if MSB reaches our entry trigger set at 26.34. Also place a 3.19 trailing stop which can be narrowed to 1.6 when you reach a 2.48 profit. MSB closed Tuesday at 25.48. Earnings Report Date: Apr 25, 2023. Beta: 0.98. Market-Cap: 334.298M. Optionable. Lithium Americas Corp. (LAC: Basic Materials/Other Industrial Metals & Mining) - SQUEEZE PLAY. LAC 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 24.23 and a SELL short entry at 22.74. Once your trade is filled, enter a 1.49 trailing stop. Tighten it to 0.75 after a 2.44 gain. LAC closed on Tuesday at 23.59. Earnings Report Date: Mar 15, 2023. Beta: 1.60. Market-Cap: 3.564B. Optionable. HEALTHCARE SECTOR Acrivon Therapeutics, Inc. (ACRV: Healthcare/Biotechnology) - SQUEEZE PLAY. ACRV shareholders know what it feels like to be squeezed. Tuesday'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. ACRV closed Tuesday at 20.32. The plan is to enter in the right direction by placing a BUY trigger at 21 and a SELL short trigger at 18.23. Once ACRV establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 2.77. After you've collected a 4.86 profit, tighten the stop to 1.39. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 424.381M. Not Optionable. IVERIC bio, Inc. (ISEE: Healthcare/Biotechnology) - SQUEEZE PLAY. The ticker for Tuesday's session shows ISEE 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 21.28 and a SELL short trigger at 19.89. When ISEE 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 1.39 trailing stop. Upon reaching a 2.02 profit, resize the stop to 0.7. Earnings Report Date: Mar 01, 2023. Beta: 1.10. Market-Cap: 2.786B. Optionable. TECHNOLOGY SECTOR Tucows Inc. (TCX: Technology/Software-Infrastructure) - SQUEEZE PLAY. Tuesday's trading session left TCX 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 24.13 and your SELL short trigger at 22.21. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.92 trailing stop. Once you have a 3.56 profit, reduce the stop to 0.96. Earnings Report Date: N/A. Beta: 0.76. Market-Cap: 250.274M. 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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