|
January 5, 2023 - The RightLine Report
**********************************
NOTES FROM THE EDITOR
**********************************
The Major Market Averages - Which One Really Represents The Market?
***********************************
"QUICK LIST"
***********************************
Stock 01/05 01/05 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
BJRI 27.31 -0.55 26.38 1.97/0.99 2.24
OII 17.23 0.35 17.61 1.68/0.84 1.3
CRT 23.40 -0.01 24.32 22.36 1.96/0.98 2.32
TREE 21.54 -1.19 22.62 20.8 1.82/0.91 2.82
IMXI 22.87 0.27 23.3 2.04/1.02 1.14
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 major US stock averages were lower on Thursday following the release of minutes from the Federal Open Market Commitee's December meeting suggesting that the Central Bank monetary policy will remain aggressive. Economic news included unemployment data pointing towards a tight labor market, with jobless claims lower than anticipated, which seems to be raising market expectations for more interest rate hikes from the Fed. In equities headlines, grocery & snacks firm Conagra (CAG $40) announced strong quarterly profits, beer company Constellation Brands (STZ $209) missed earnings estimates and lowered their outlook, and petro energy provider Exxon Mobil (XOM $109) presented mixed guidance for the fourth quarter. The USD/dollar and oil prices moved higher, treasury yields were mixed and gold declined. Jan 4, 2023 Jan 5, 2023
-------------------- --------------------
Dow 33,269.77 133.40 32,930.08 -339.69
Nasdaq 10,458.76 71.78 10,305.24 -153.52
S&P 500 3,852.97 28.83 3,808.10 -44.87
NYSE Volume 4.43B 3.9B
NYSE Advancers 2,534 1,293
NYSE Decliners 611 1,831
Nasdaq Volume 5.1B 4.79B
Nasdaq Advancers 3,373 1,898
Nasdaq Decliners 1,229 2,715
New Highs/Lows
12/29 12/30 01/02 01/03 01/04 01/05
--------------------------------------------
NYSE New Highs 56 49 0 71 65 64
NYSE New Lows 84 72 0 36 19 37
Nasdaq New Highs 89 101 0 107 102 106
Nasdaq New Lows 209 181 0 94 57 91
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Charles Dow's Three Trends" Charles Dow - who developed the Dow Jones Averages - taught that there are always three "trends" occurring in the stock market at the same time. ~ The first trend is the Primary Trend, which can be either bullish or bearish. These trends tend to last anywhere from a year up to several years, and can sometimes run for much longer. ~ The next trend is the Secondary Trend. These "counter trends" move in the opposite direction to the Primary Trend, and usually last anywhere from a week to a few months. They present themselves as rallies in Bear markets and pullbacks, or corrections in Bull markets. Secondary trends will often retrace between one-third to two-thirds of the most recent prior secondary trend. ~ The third trend is the Minor Trend. These are the very short-term intra and inter day trends that Dow referred to as "Tertiary Movements." Though it may seem like a paradox at first, it's easy to see these three separate trends at work simultaneously when looking at stock charts in monthly, weekly, daily, and intra-day time frames. **************************
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 - 3808.10 January 5, 2023 52-Week High: 4748.83 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 3980.97 Resistance 2: 3903.56 Resistance 1: 3871.53 Pivot: 3826.15 Support 1: 3794.12 Support 2: 3748.74 Support 3: 3671.33 https://www.prorightline.com/rlch/010523SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Friday, January 06, 2023: 06-Jan 8:30 am Nonfarm payrolls 06-Jan 8:30 am Unemployment rate 06-Jan 8:30 am Average hourly earnings 06-Jan 8:30 am Labor force participation rate, ages 25-54 06-Jan 10 am ISM services index 06-Jan 10 am Factory orders 06-Jan 10 am Core equipment orders onday, January 09, 2023: 02-Jan New Year holiday. None scheduled. Tuesday, January 10, 2023: 03-Jan 9:45 am S&P U.S. manufacturing PMI 03-Jan 10 am Construction spending Wednesday, January 04, 2023: 04-Jan 10 am ISM manufacturing index 04-Jan 10 am Job openings 04-Jan 10 am Quits 04-Jan 2 pm FOMC minutes 04-Jan Varies Motor vehicle sales (SAAR) onday, January 09, 2023: 02-Jan New Year holiday. None scheduled. Tuesday, January 10, 2023: 03-Jan 9:45 am S&P U.S. manufacturing PMI 03-Jan 10 am Construction spending 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: "Paid Two Ways" "When it comes to trading the stock market, everyone is paid two ways - in money and experiences. Learn from the experiences first, and the money will follow." ***********************************
STOCKS COVERED IN THIS ISSUE
***********************************
CONSUMER CYCLICAL SECTOR BJ's Restaurants, Inc. (BJRI: Consumer Cyclical/Restaurants) - BEARISH U-TURN. Shares of BJRI have experienced the pain of selling pressure for a while, yet a recent bounce has given shareholders some welcome yet perhaps temporary relief. On Thursday the upward bounce ran into a brick wall at a Moving Average. BJRI now appears ready to head lower again. A continuation of this bearish reversal would signal a retracement of the recent gains, so prepare for SHORT entries at 26.38, using a 1.97 stop. Tighten to 0.99 on a gain of 2.24. Thursday's closing tick was 27.31. Earnings Report Date: Feb 15, 2023. Beta: 1.81. Market-Cap: 638.838M. Optionable. ENERGY SECTOR Oceaneering International, Inc. (OII: Energy/Oil & Gas Equipment & Services) - BULLISH BOUNCE. Up-trending stocks like OII 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 Thursday, OII is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 17.61 if positive price action occurs. As always, follow your entry with a trailing stop. A 1.68 trailer should work well with OII. Tighten it to 0.84 on a 1.3 gainer. Earnings Report Date: Feb 22, 2023. Beta: 2.85. Market-Cap: 1.727B. Optionable. Cross Timbers Royalty Trust (CRT: Energy/Oil & Gas E&P) - SQUEEZE PLAY. Thursday's narrow price range has created a potentially profitable setup in CRT, as sellers and buyers find themselves in a near tie for control of price direction. The next short-term trend could go either way, so prepare for a move out of the draw within the next day or so. Set a BUY entry at 24.32 and a SELL short entry at 22.36. Let CRT's price action determine your long or short entry. Once the order is filled, place a 1.96 trailing stop, and tighten it to 0.98 upon getting a 2.32 gain. CRT closed Thursday at 23.40. Earnings Report Date: N/A. Beta: 0.69. Market-Cap: 140.4M. Not Optionable. FINANCIAL SERVICES SECTOR LendingTree, Inc. (TREE: Financial Services/Financial Conglomerates) - SQUEEZE PLAY. Traders are feeling the pressure as TREE's intra-day price range on Thursday 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 22.62 and a SELL short entry at 20.8. TREE's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.82 trailing stop. Tighten it to 0.91 after you get a 2.82 gain. TREE closed Thursday at 21.54. Earnings Report Date: Feb 23, 2023. Beta: 1.65. Market-Cap: 275.402M. Optionable. TECHNOLOGY SECTOR International Money Express, Inc. (IMXI: Technology/Software-Infrastructure) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, IMXI 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 22.87, plan to buy shares at 23.3 and use a 2.04 trailing stop. Tighten the stop to 1.02 on a 1.14 gain. Earnings Report Date: Mar 06, 2023. Beta: 0.53. Market-Cap: 847.617M. 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 ---------------- ------- -------- ------- ------ ------- 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!
**********
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 1-312-248-4241. |