|
January 11, 2022 - The RightLine Report
**********************************
NOTES FROM THE EDITOR
**********************************
Writer Sydney Harris says, "An idealist believes the short run doesn't count. A cynic believes the long run doesn't matter. A realist believes that what is done or left undone in the short run determines the long run."
***********************************
"QUICK LIST"
***********************************
Stock 01/11 01/11 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
CLF 22.20 -0.45 22.6 1.67/0.84 1.72
X 24.39 -0.30 24.75 1.99/1 1.68
TX 46.19 -0.21 46.91 3.55/1.78 2.6
MKC 95.21 0.58 96.46 6.07/3.04 3.42
DICE 20.47 0.48 20.99 18.94 2.05/1.03 5.46
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/
*****************************
MARKET SUMMARY
*****************************
The markets moved higher on Tuesday after Federal Reserve Bank Chair Jerome Powell suggested a soft economic landing is likely as the Central Bank reduces its emergency stimulus measures and tightens monetary policy. In other economic news, small business optimism improved more than predicted, while inflation and labor shortages continue to cause investor concerns. On the equities front, Illumina (ILMN $424), CVS Health (CVS $106) and Shake Shack (SHAK $77) all released upbeat guidance. The share price of all three companies advanced higher. Oil prices and gold were noticeably higher, the USD/dollar was lower. Treasuries were mostly higher, with yields on the longer end coming under pressure. Jan 10, 2022 Jan 11, 2022
-------------------- --------------------
Dow 36,068.87 -162.79 36,252.02 183.15
Nasdaq 14,942.83 6.93 15,153.45 210.62
S&P 500 4,670.29 -6.74 4,713.07 42.78
NYSE Volume 4.66B 4.12B
NYSE Advancers 1,219 2,461
NYSE Decliners 2,133 892
Nasdaq Volume 5.47B 4.41B
Nasdaq Advancers 1,598 3,207
Nasdaq Decliners 3,131 1,439
New Highs/Lows
01/05 01/05 01/06 01/07 01/10 01/11
--------------------------------------------
NYSE New Highs 132 112 64 101 95 96
NYSE New Lows 118 38 185 105 205 57
Nasdaq New Highs 123 104 90 103 87 45
Nasdaq New Lows 406 138 612 338 740 172
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Prevent Overtrading - Be Selective" Traders will sometimes say to themselves - "Here I am with money in my trading account, so I'm going to trade SOMETHING today!" Unfortunately what they do next usually qualifies as "over trading." Remember that patience is a major key to success in this business, so always be selective about the trades you take. **************************
THE TECHNICAL ANALYST
**************************
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 - 4713.07 January 11, 2022 52-Week High: 4818.62 52-Week Low: 3694.12 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 5031.22 Resistance 2: 4875.34 Resistance 1: 4776.18 Pivot: 4719.46 Support 1: 4620.30 Support 2: 4563.58 Support 3: 4407.70 https://www.prorightline.com/rlch/011122SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, January 10, 2022: 10-Jan 10 am Wholesale inventories (revision) Tuesday, January 11, 2022: 11-Jan 6 am NFIB small-business index Wednesday, January 12, 2022: 12-Jan 8:30 am Consumer price index 12-Jan 8:30 am Core CPI 12-Jan 2 pm Federal budget 12-Jan 2 pm Beige book Thursday, January 13, 2022: 13-Jan 8:30 am Initial jobless claims (regular state program) 13-Jan 8:30 am Continuing jobless claims (regular state program) 13-Jan 8:30 am Producer price index Friday, January 14, 2022: 14-Jan 8:30 am Retail sales 14-Jan 8:30 am Retail sales excluding autos 14-Jan 8:30 am Import price index 14-Jan 9:15 am Industrial production 14-Jan 9:15 am Capacity utilization 14-Jan 10 am UMich consumer sentiment index (preliminary) 14-Jan 10 am Business inventories 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/
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Using The Gap Open Tactic When Selling Short" The Gap Open Tactic works as well when we sell short as it does when we buy a stock. If the stock gaps down at the open, wait for it to take out its low of the first half-hour then enter 0.25 below that point. For more on the Gap Open Tactic go to:http://www.rightline.net/education/gapopen.html ***********************************
STOCKS COVERED IN THIS ISSUE
***********************************
BASIC MATERIALS SECTOR Cleveland-Cliffs Inc. (CLF: Basic Materials/Steel) - BULLISH BOUNCE. Here is another example of a stock in an established uptrend that has recently experienced a counter-trend drop. The sliding price action has now found support near a moving average zone, bouncing upward during Tuesday's session to close at 22.20. Anticipate the rebound to continue, and be ready to buy CLF at 22.6. Follow your entry with a trailing stop of 1.67 which can be tightened to 0.84 on a 1.72 profit. Earnings Report Date: Feb 23, 2022. Beta: 2.18. Market-Cap: 11.102B. Optionable. United States Steel Corporation (X: Basic Materials/Steel) - BULLISH BOUNCE. Up-trending stocks like X have a tendency to bounce their way skyward rather than travel higher in a straight line. After touching down to a moving average support level on Tuesday, X is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 24.75 if positive price action occurs. As always, follow your entry with a trailing stop. A 1.99 trailer should work well with X. Tighten it to 1 on a 1.68 gainer. Earnings Report Date: Jan 26, 2022. Beta: 2.11. Market-Cap: 6.591B. Optionable. Ternium S.A. (TX: Basic Materials/Steel) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, TX fits the bill. Shares have been in retreat-mode lately, but now this stock is in the process of bouncing from support. Currently priced at 46.19, plan to buy shares at 46.91 and use a 3.55 trailing stop. Tighten the stop to 1.78 on a 2.6 gain. Earnings Report Date: Feb 15, 2022. Beta: 1.58. Market-Cap: 9.067B. Optionable. CONSUMER DEFENSIVE SECTOR McCormick & Company, Incorporated (MKC: Consumer Defensive/Packaged Foods) - NEW HIGH DIP. For a stock, the ladder to the top has rungs made up of 52-week highs. Each step up is followed by profit taking that usually causes a temporary pullback. The New High Dip setup uses these dips for safe entries into strong stocks. MKC is now showing strength, so plan to BUY shares when this winner reaches our trigger at 96.46. Follow your position with a 6.07 trailing stop, which you can tighten to 3.04 when you have gained 3.42 points. MKC last closed at 95.21. Earnings Report Date: Jan 27, 2022. Beta: 0.48. Market-Cap: 25.444B. Optionable. HEALTHCARE SECTOR DICE Therapeutics, Inc. (DICE: Healthcare/Biotechnology) - SQUEEZE PLAY. Tuesday's trading action forced DICE's daily price range into an abnormally narrow state. This translates into opportunity; for the cyclical nature of price volatility is to shrink extensively, then swell rapidly as shares move in one direction or another. Instead of trying to predict the direction DICE will take when price volatility begins to increase, we'll set both a BUY (long) and a SELL (short) trigger to get us into the right trade. Be ready to BUY shares at 20.99 if DICE moves higher, and place your order to SELL short at 18.94 if price declines to that level. As usual follow your entry with a trailing stop, 2.05 should be sufficient. Reduce your stop to 1.03 on a 5.46 gain. DICE closed Tuesday at 20.47. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 782.597M. Not 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
***********************************
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 ---------------- ------- -------- ------- ------ ------- 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 1/10/2022 5-for-1 No Merchants Bancorp MBIN 11/17/2021 1/18/2022 2-for-1 No SMART Global Hold SGH 1/4/2022 2/2/2022 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!
**********
If you prefer to receive this report in html with color and
graphics, or have any questions, send us an email using our contact
form at:https://prorightline.com/index.php/contact-us/
======================================================================
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 To Unsubscribe, send an email to cs@prorightline.com or call 800-737-4518. |