June 14, 2022 - The RightLine Report 

 
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                      NOTES FROM THE EDITOR
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"Think education is expensive? Try ignorance." RightLine took this bit of wisdom to heart in 1997 and turned it into a company trademark.

Since then we have emphasized a personal trading education as a gateway to financial improvement. Being students of the market, we're always learning. Every day presents new challenges, and within the challenges we find new opportunities. Granted, it does take effort to get an education, yet as the saying goes, it's much less expensive than ignorance.

Unfortunately most investors do "try ignorance" - although unknowingly.

And while some uninformed folks view trading stocks as a type of gambling, their lack of understanding usually keeps them from accessing the most valuable profit-producing tools and training available anywhere.

Trading is an extremely valuable resource for any student of the market, because teaches profit skills efficiently. I know of no better way to compact as much usable experience into such a short period of time.

Once you've learned how to trade, you can apply your skills to any time frame - from minutes to years.

The repetition of strategic planning, entering positions under live conditions, implementing risk control, and managing trades sharpens your abilities faster than most people would ever imagine.

Just remember to be patient with yourself. Learning this craft requires several years to reach a high level of consistent performance - even if you are a fast learner.

Regardless of the way anyone chooses to learn or how they perceive the rise and fall of stock prices, we can be certain that market cycles will continue to repeat themselves. There will be varying degrees of increase and decline between the reversal levels, but the up and down cycles are sure to continue in all time frames.

And since they always do, it follows that if we want to make money in the market, the best role to assume is that of a student. Why? Because this point of view allows us to use the knowledge we accumulate to improve our skills. Students are willing to accept mistakes as part of the learning process and make adjustments along the way.

The knowledge gained in the student role is powerful. It allows us to assign significant value to the experience of the journey as well as the destination. The benefits of doing that are real, and once prepared you can literally name your own price.

Trade well!

Thomas Sutton, Editor 

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                           "QUICK LIST"
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Stock     06/14     06/14      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

CCXI      23.37      0.17     24.09     22.05        2.04/1.02         3
RCMT      23.10      0.86     23.89     21.58        2.31/1.16      4.54
BEKE      15.27      0.86     15.64                  1.83/0.92       1.9
LSPD      20.31      0.18     20.99     19.03        1.96/0.98      4.46
YOU       21.02     -0.49     22.09     20.03        2.06/1.03      5.52


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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The major US stock averages were mixed Tuesday after the recent sharp selloff that resulted from last week's much hotter than expected consumer price inflation report. The Dow and S&P 500 were both lower, while the Nasdaq made a small gain. Inflation worries have raised expectations of a more aggressive Federal Reserve Bank, which in turn has fostered recession concerns. In other economic news, small business optimism declined as inflation concerns continue to weigh on sentiment. Equities headlines feaured news from FedEx (FDX $230) who announced a dividend increase, while Oracle (ORCL $71) beat earnings expectations on strong cloud revenues. Gold, oil prices and treasuries were all lower, the USD/moved higher.


                       Jun 13, 2022           Jun 14, 2022   
                  --------------------   --------------------
Dow                 30,516.74  -876.05     30,364.83  -151.91
Nasdaq              10,809.23  -530.80     10,828.35    19.12
S&P 500              3,749.63  -151.23      3,735.48   -14.15

NYSE Volume                       5.7B                  5.26B
NYSE Advancers                     183                  1,242
NYSE Decliners                   3,166                  2,071

Nasdaq Volume                    5.94B                  4.85B
Nasdaq Advancers                   584                  2,015
Nasdaq Decliners                 4,240                  2,715

                                 New Highs/Lows

                   06/07  06/08  06/09  06/10  06/13  06/14
                 --------------------------------------------
NYSE New Highs        98     91     12      4      1      4
NYSE New Lows         66     51    111    251    801    850
Nasdaq New Highs      55     50     25     23     22     15
Nasdaq New Lows      180    124    177    464  1,138  1,020

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                              TRADER'S TIP:  
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TRADER'S TIP: "Squeeze Plays"

Price squeezed into a much smaller-than-average range causes a dramatic drop in volatility. Due to the cyclical and explosive nature of volatility, powerful price moves tend to occur soon after these narrow range setups. But there's no reason to jump in too fast. Be patient, let the market show its hand first, and you'll get a low risk entry with the potential for high reward! 
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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/ 
S&P 500 - 3735.48 June 14, 2022

52-Week High: 4818.62
52-Week Low: 3705.68
Daily Trend: DOWN
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 4527.17
Resistance 2: 4258.55
Resistance 1: 4079.70
Pivot: 3989.93
Support 1: 3811.08
Support 2: 3721.31
Support 3: 3452.69
https://www.prorightline.com/rlch/061422SPX.jpg

NASDAQ Composite - 10828.35 June 14, 2022

52-Week High: 16212.23
52-Week Low: 10733.04
Daily Trend: DOWN
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 13472.15
Resistance 2: 12555.02
Resistance 1: 11947.52
Pivot: 11637.89
Support 1: 11030.39
Support 2: 10720.76
Support 3: 9803.63


Dow Industrials - 30364.83 June 14, 2022

52-Week High: 36952.65
52-Week Low: 30144.23
Daily Trend: DOWN
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 35700.39
Resistance 2: 33852.86
Resistance 1: 32622.82
Pivot: 32005.33
Support 1: 30775.29
Support 2: 30157.80
Support 3: 28310.27


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                             MARKET CALENDAR
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--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
Monday, June 13, 2022:
13-Jun  11 am   NY Fed 1-year inflation expectations
13-Jun  11 am   NY Fed 3-year inflation expectations

Tuesday, June 14, 2022:
14-Jun   6 am   NFIB small-business index
14-Jun  8:30 am   Producer price index final demand

Wednesday, June 15, 2022:
15-Jun  8:30 am   Retail sales
15-Jun  8:30 am   Retail sales excluding vehicles
15-Jun  8:30 am   Import price index
15-Jun  8:30 am   Empire state manufacturing index
15-Jun  10 am   NAHB home builders index
15-Jun  10 am   Business inventories
15-Jun   2 pm   FOMC statement
15-Jun   2 pm   FOMC projections
15-Jun   2 pm   Fed Chair Jerome Powell news conference

Thursday, June 16, 2022:
16-Jun  8:30 am   Initial jobless claims
16-Jun  8:30 am   Continuing jobless claims
16-Jun  8:30 am   Building permits (SAAR)
16-Jun  8:30 am   Housing starts (SAAR)
16-Jun  8:30 am   Philadelphia Fed manufacturing index

Friday, June 17, 2022:
17-Jun  9:15 am   Industrial production index
17-Jun  9:15 am   Capacity utilization
17-Jun  10 am   Leading economic indicators

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: "Trading Ranges"

When a stock is in a "trading range" you can draw relatively horizontal parallel lines that enclose most of the highs and lows. As time passes, these lines can provide potential resistance - on top - and support - on bottom - for the stock. When it breaks through these lines and disrupts the trading range, a new pattern can begin as long as the stock does not quickly return to its previous range. When the stock breaks out, the previous top - resistance - can become the bottom - support - of a new trading range. 

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                      STOCKS COVERED IN THIS ISSUE    
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HEALTHCARE SECTOR

ChemoCentryx, Inc. (CCXI: Healthcare/Biotechnology) - SQUEEZE PLAY. One interesting trait of price volatility is that it cycles back and forth through periods of expansion and contraction. Stocks that have recently seen their daily price range shift from an average or wide range to an extremely contracted state are ideal candidates for expansive price moves. In many cases the next move is relatively fast and covers a sizable amount of territory. To take advantage of these trades we use both a BUY and a SELL entry. This allows us to enter in whichever direction the breakout takes. In CCXI's case we will enter a BUY should it reach the 24.09 level, or a SELL short trade if it drops to 22.05. As usual a trailing stop is essential, 2.04 which should be tightened to 1.02 on a 3 gain. CCXI closed Tuesday at 23.37. Earnings Report Date: Aug 08, 2022. Beta: 1.94. Market-Cap: 1.664B. Optionable.

INDUSTRIALS SECTOR

RCM Technologies, Inc. (RCMT: Industrials/Engineering & Construction) - SQUEEZE PLAY. When a stock's daily price range contracts to an unusually low point, you can safely assume that in most cases a breakout from that range will result in a nice price move. To capture a portion of this potential movement we have set both a long and a short entry into RCMT. A move to the upside will trigger our BUY entry at 23.89, while a drop to 21.58 will trigger our SELL short entry. Follow your position with a 2.31 trailing stop. Tighten the stop to 1.16 once you have a 4.54 gain. RCMT closed Tuesday at 23.10. Earnings Report Date: Aug 08, 2022. Beta: 1.01. Market-Cap: 260.219M. Optionable.

REAL ESTATE SECTOR

KE Holdings Inc. (BEKE: Real Estate/Real Estate Services) - BULLISH BOUNCE. The charts for BEKE show that despite the downward pressure from sellers recently, the weekly uptrend is still going strong. Buyers showed up again on Tuesday, resulting in the early stages of a rebound that started near moving average support. The resulting Bullish Bounce set-up offers a potential entry point for a long play. Set your trigger to BUY shares at 15.64, and follow your entry with a trailing stop of 1.83. Tighten it to 0.92 when a 1.9 profit is reached. BEKE ended the latest session at 15.27. Earnings Report Date: Aug 09, 2022. Beta: N/A. Market-Cap: 19.331B. Optionable.

TECHNOLOGY SECTOR

Lightspeed Commerce Inc. (LSPD: Technology/Software-Application) - SQUEEZE PLAY. Tuesday's trading action forced LSPD'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 LSPD 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 LSPD moves higher, and place your order to SELL short at 19.03 if price declines to that level. As usual follow your entry with a trailing stop, 1.96 should be sufficient. Reduce your stop to 0.98 on a 4.46 gain. LSPD closed Tuesday at 20.31. Earnings Report Date: Aug 03, 2022. Beta: 3.19. Market-Cap: 3.045B. Optionable.

Clear Secure, Inc. (YOU: Technology/Software-Application) - SQUEEZE PLAY. YOU is caught in a dilemma. The stock's compressed price range on Tuesday has resulted in a condition comparable to a wound up rubber band. We anticipate that this undecided equity will take off soon, but with the direction still in question we'll let upcoming market action tell us whether to buy shares or sell short. YOU is now at 21.02. We can capture price action either way by placing a BUY trigger at 22.09 and a SELL short trigger at 20.03. Once YOU reveals its direction, enter your triggered order and disregard the other one. As soon as your position is in place, follow up with a trailing stop of 2.06. When you acquire a 5.52 profit, tighten the stop to 1.03. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 3.15B. 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  
---------------- -------     --------    -------     ------  -------   
Amazon            AMZN       3/9/2022   6/6/2022   20-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/ 
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