July 30, 2024 - The RightLine Report 

 
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                      NOTES FROM THE EDITOR
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Every successful trader knows the importance of adapting to shifts in the market. One of the best ways to track these changes is to monitor your own trades. This allows you to see emerging trends more quickly, and helps protect you from unexpected twists and turns.

When it comes to monitoring tools, nothing beats a trading journal. In addition to helping you spot market patterns, they also help you track trends in your personal trading and identify which set-ups are most effective in the current trading environment.

A simple spreadsheet is all you need. Each row represents a trade, with the left-most column listing the date the position was entered. Moving right, in each column, you have details such as the ticker, the size of the position, whether you bought or sold short, the price you entered, and the stops that you've used. When the trade is exited, the remaining columns are filled in: date closed, net gain/loss in dollars, and net gain/loss as a percentage. For these final two columns, many traders prefer to color-code: red for losses, green for gains, black for breakeven.

To this basic information, it's a good idea to add some columns that help with monitoring. This might include the stock's sector, the prevailing market trend when you entered the trade, and a column for your general comments and thoughts on the trade.

While this may sound like a lot of information, it's actually quite digestible in spreadsheet format. At a quick glance you'll be able to spot patterns that can be used to increase your profitability. Are your tech sector trades gradually becoming less profitable? Are your short trades yielding larger gains? Is a certain sector consistently outperforming? Use this tool to find out! Your account will thank you.

Here's to profits,

Kent Barton
Senior Analyst 

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                           "QUICK LIST"
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Stock     07/30     07/30      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

AEM       75.16      0.64     76.31                   4.79/2.4      3.22
TYRA      21.57      1.22     21.86                  2.41/1.21      2.56
S         22.55     -0.06     23.37     21.44        1.93/0.97       1.6


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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Major equity markets closed mixed on Tuesday, with small and mid-cap stocks outperforming large-cap stocks. Energy, financial, and real estate sectors led the gains, continuing a trend of broadening market leadership. Technology stocks fell 2.2% as investors awaited key sector earnings announcements this week, contributing to a decline in the tech-heavy Nasdaq.

Bond yields edged lower, with the 10-year Treasury yield around 4.14%. Globally, Asian markets mostly declined, while European markets rose as investors anticipated central-bank decisions in Japan and the U.K. The USD/dollar remained stable against major currencies. In commodities, WTI oil prices decreased due to concerns over Chinese demand, while gold prices increased.

The Federal Reserve's Open Market Committee (FOMC) meeting for July began Tuesday, with the interest rate decision to be announced on Wednesday, followed by a press conference with Fed Chair Jerome Powell. The market anticipates that the Fed will keep the fed funds rate steady at 5.25% - 5.5%, which aligns with our expectations. However, the central bank may indicate that interest rate cuts could become more likely later this year. U.S. inflation has moderated, with the Fed's preferred core personal consumption expenditures (PCE) inflation easing to 2.6% annualized through June.

Additionally, the labor market is gradually cooling, with approximately 8.2 million job openings at the end of June, slightly lower than expected. The unemployment rate has risen to 4.1%, surpassing the Fed's year-end forecast of 4.0%, while wage gains have slowed to below 4.0%. This combination of easing inflation, a Fed poised for potential rate cuts, and positive but cooling economic growth supports the ongoing expansion of the stock market.

The week will conclude with the release of the nonfarm payrolls report on Friday morning. Estimates project an increase of 175,000 jobs in June, down from 206,000 in May. The unemployment rate is expected to remain at 4.1%, and average hourly earnings are forecast to decrease to 3.7% year-over-year from 3.9% last month. The Fed will closely monitor wage growth data, as lower wage gains typically correlate with reduced services inflation. We believe the cooling labor market supports the "soft landing" narrative for the economy and suggests moderating inflation ahead.


                       Jul 29, 2024           Jul 30, 2024   
                  --------------------   --------------------
Dow                 40,539.93   -49.41     40,743.33   203.40
Nasdaq              17,370.20    12.32     17,147.42  -222.78
S&P 500              5,463.54     4.44      5,436.44   -27.10

NYSE Volume                      3.39B                  3.79B
NYSE Advancers                   1,158                  1,728
NYSE Decliners                   1,633                  1,035

Nasdaq Volume                    4.92B                  5.59B
Nasdaq Advancers                 1,454                  1,956
Nasdaq Decliners                 2,761                  2,269

                                 New Highs/Lows

                   07/23  07/24  07/25  07/26  07/29  07/30
                 --------------------------------------------
NYSE New Highs       214    111    178    214    179    218
NYSE New Lows         17     28     29     17     14     25
Nasdaq New Highs     238    167    214    243    162    176
Nasdaq New Lows       89    117    108     69     91    140

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                              TRADER'S TIP:  
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TRADER'S TIP: "When Your Indicators Contradict The Trend"

Due to their overly sensitive nature, some technical indicators will turn in one direction while the price trend remains in the other. A rule of thumb - whenever a price trend and indicators are in conflict, always go with price until the trend is broken. 
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                         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/ 
https://www.prorightline.com/rlch/073024SPX.jpg





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                             MARKET CALENDAR
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--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
MONDAY, JULY 29	
None scheduled
				
TUESDAY, JULY 30					
9:00 am	S&P Case-Shiller home price index
10:00 am	Consumer confidence	
10:00 am	Job openings

WEDNESDAY, JULY 31					
8:15 am	ADP employment	
8:30 am	Employment cost index	
9:45 am	Chicago Business Barometer (PMI)	
10:00 am	Pending home sales			
2:00 pm	FOMC interest-rate decision				
2:30 pm	Fed Chair Powell press conference
				
THURSDAY, AUG 1					
8:30 am	Initial jobless claims	
8:30 am	U.S. productivity	
9:45 am	S&P U.S. manufacturing PMI	
10:00 am	ISM manufacturing	
10:00 am	Construction spending	

FRIDAY, AUG. 2					
8:30 am	U.S. employment report	
8:30 am	U.S. unemployment rate	
8:30 am	U.S. hourly wages	
8:30 am	Hourly wages year over year		
10:00 am	Factory orders

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: "Let The Trade Come To You"

It rarely pays to chase a stock, so don't chase it - let the trade come to you. You have two options when you realize a move is already underway. Either forget the trade and look for another one, or wait for the price to move back to support or resistance THEN enter on the rebound. Waiting for a pullback usually provides a relatively low risk entry - because you can place a tight stop just beyond the support or resistance level. Remember - don't worry if you miss a trade, there is always another. 

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                      STOCKS COVERED IN THIS ISSUE    
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BASIC MATERIALS SECTOR

Agnico Eagle Mines Limited (AEM: Basic Materials/Gold) - BULLISH BOUNCE. This trader-friendly setup turns repetitive stock behavior into real profits. Based on the tendency for up-trending stocks to drop briefly and then resume the up-trend, the Bullish Bounce places traders into excellent stocks when conditions are primed for more skyward movement. AEM's current price action near moving average support signals a potential BUY entry at 76.31, followed by a 4.79 trailing stop which can be tightened to 2.4 upon earning 3.22. AEM closed Tuesday at 75.16. Earnings Report Date: Jul 31, 2024. Beta: 1.05. Market-Cap: 37.504B. Optionable.

HEALTHCARE SECTOR

Tyra Biosciences, Inc. (TYRA: Healthcare/Biotechnology) - BULLISH BOUNCE. TYRA has charted an upward weekly trend until recently when sellers showed up to push prices lower. On Tuesday the selling ran into solid support. A potential bounce up from this level should attract buyers and likely return TYRA to the previously established uptrend. The Bullish Bounce set-up is the basis for our BUY entry, so be ready to go long on a rise to our trigger at 21.86. Set a trailing stop of 2.41, tightening to 1.21 on a 2.56 profit. TYRA closed at 21.57 on Tuesday. Earnings Report Date: Aug 8, 2024. Beta: 1.01. Market-Cap: 1.133B. Optionable.

TECHNOLOGY SECTOR

SentinelOne, Inc. (S: Technology/Software - Infrastructure) - SQUEEZE PLAY. Trader indecision has put S squarely in the center of a Bull versus Bear standoff. This tight spot should soon give way to a clear winner in the short-term, and we want to be in position for the move. To do that we've set a BUY entry at 23.37 and a SELL short entry at 21.44. Now it's up to S to show us which entry will be filled. Once the trade is underway place a 1.93 trailing stop, which can be tightened to 0.97 after you achieve a 1.6 profit. S closed on Tuesday at 22.55. Earnings Report Date: Aug 29, 2024. Beta: 0.66. Market-Cap: 7.055B. 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/ 

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                           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/ 
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Best of luck and have a Great Week!
 
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