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June 15, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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Simplifying a Complex Market
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"QUICK LIST"
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Stock 06/15 06/15 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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IPI 21.77 0.44 22.21 20.71 1.5/0.75 1.54
SCHW 55.51 1.15 56.33 4.02/2.01 2.6
AROW 21.85 0.35 / 0
VKTX 22.46 0.06 23.08 21.29 1.79/0.9 3.42
SSTI 21.20 -0.10 21.74 20.4 1.34/0.67 2.58
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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After a slow start on Thursday, markets finished sharply higher after digesting Wednesday's Fed meeting in which the central bank held rates steady while signaling more rate hikes may lie ahead. After a healthy rally over the last few months, the latest Fed commentary did little to drain enthusiasm, with Thursday's gain reflecting the view that the Fed will not ultimately tighten to the point at which the economy suffers a dramatic downturn. This was corroborated by equity performance, which featured a mixture of leadership from technology and communication services, as well as financials and cyclical industrials. Elsewhere, global stocks traded largely to the upside, while the USD/dollar and oil prices were also higher. Following an initial move higher that led the 10-year Treasury yield back above 3.8%, rates reversed course after the release of a batch of economic data that reflected slowing hiring, spending, and factory activity, sending yields lower on the day. As for the latest Fed announcement, we think it's wise for the Fed to err on the side of caution when it comes to the fight against inflation, though we're not fully convinced multiple additional rate hikes are set in stone.
Jun 14, 2023 Jun 15, 2023
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Dow 33,979.33 -232.79 34,408.06 428.73
Nasdaq 13,626.48 53.16 13,782.82 156.34
S&P 500 4,372.59 3.58 4,425.84 53.25
NYSE Volume 4.26B 4.19B
NYSE Advancers 1,172 2,237
NYSE Decliners 1,793 726
Nasdaq Volume 5.79B 5.69B
Nasdaq Advancers 1,697 2,926
Nasdaq Decliners 2,736 1,491
New Highs/Lows
06/08 06/09 06/12 06/13 06/14 06/15
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NYSE New Highs 83 70 98 137 118 104
NYSE New Lows 18 17 12 8 18 22
Nasdaq New Highs 87 117 162 223 185 189
Nasdaq New Lows 62 73 83 71 89 84
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TRADER'S TIP:
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TRADER'S TIP: "Computer Based Trading" Computer technology helps us trade more effectively, but only if our methodology is reliable. "Reliable" doesn't necessarily mean complex. In fact most reliable short-term trading methods are fairly simple. However, every method should include some type of technical analysis to time entries and exits, along with a risk management component to prevent account damage.
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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 - 4425.84 June 15, 2023 52-Week High: 4439.20 52-Week Low: 3491.58 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4417.28 Resistance 2: 4355.73 Resistance 1: 4327.29 Pivot: 4294.18 Support 1: 4265.74 Support 2: 4232.63 Support 3: 4171.08 https://www.prorightline.com/rlch/061523SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, June 19, 2023: 12-Jun MONDAY, JUNE 12 12-Jun None scheduled 12-Jun TUESDAY, JUNE 13 Tuesday, June 20, 2023: 13-Jun 6:00 am NFIB optimism index 13-Jun 8:30 am Consumer price index 13-Jun 8"30 am Core CPI 13-Jun 8:30 am CPI year over year 13-Jun 8:30 am Core CPI year over year 13-Jun WEDNESDAY, JUNE 14 Wednesday, June 21, 2023: 14-Jun 8:30 am Producer price index 14-Jun 8"30 am Core PPI 14-Jun 8:30 am PPI year over year 14-Jun 8:30 am Core PPI year over year 14-Jun 2:00 pm Fed decision on interest-rate policy 14-Jun 2:30 pm Fed Chairman Powell press conference 14-Jun THURSDAY, JUNE 15 Thursday, June 22, 2023: 15-Jun 8:30 am Initial jobless claims 15-Jun 8:30 am U.S. retail sales 15-Jun 8:30 am Retail sales minus autos 15-Jun 8:30 am Import price index 15-Jun 8:30 am Import price index minus fuel 15-Jun 8:30 am Empire State manufacturing survey 15-Jun 8:30 am Philadelphia Fed manufacturing survey 15-Jun 9:15 am Industrial production 15-Jun 9:15 am Capacity utilization 15-Jun 10:00 am Business inventories 15-Jun FRIDAY, JUNE 16 Friday, June 16, 2023: 16-Jun 10:00 am Consumer sentiment 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: "Margin Trading" Always use extreme caution when trading on margin. The majority of traders who max out their margin limits wind up getting margin calls that result in big losses. Some brokers require margin be used to pay for half of every purchase of shares. If this is the case, be extremely careful that you always have enough cash on hand to offset any margined positions.
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STOCKS COVERED IN THIS ISSUE
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BASIC MATERIALS SECTOR Intrepid Potash, Inc. (IPI: Basic Materials/Agricultural Inputs) - SQUEEZE PLAY. Thursday's trading action forced IPI'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 IPI 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 22.21 if IPI moves higher, and place your order to SELL short at 20.71 if price declines to that level. As usual follow your entry with a trailing stop, 1.5 should be sufficient. Reduce your stop to 0.75 on a 1.54 gain. IPI closed Thursday at 21.77. Earnings Report Date: Aug 02, 2023. Beta: 2.04. Market-Cap: 286.463M. Optionable. FINANCIAL SERVICES SECTOR The Charles Schwab Corporation (SCHW: Financial Services/Capital Markets) - BULLISH BOUNCE. Another bullish bouncer, SCHW appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Thursday's positive price action near Moving Average support says it's time to BUY shares if SCHW reaches our entry trigger set at 56.33. Also place a 4.02 trailing stop which can be narrowed to 2.01 when you reach a 2.6 profit. SCHW closed Thursday at 55.51. Earnings Report Date: Jul 17, 2023. Beta: 0.88. Market-Cap: 101.03B. Optionable. Arrow Financial Corporation (AROW: Financial Services/Banks-Regional) - SQUEEZE PLAY. AROW is caught in a dilemma. The stock's compressed price range on Thursday 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. AROW is now at 21.85. We can capture price action either way by placing a BUY trigger at and a SELL short trigger at . Once AROW 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 . When you acquire a 0 profit, tighten the stop to . Earnings Report Date: Jun 15, 2023. Beta: 0.66. Market-Cap: 361.652M. Optionable. HEALTHCARE SECTOR Viking Therapeutics, Inc. (VKTX: Healthcare/Biotechnology) - 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 VKTX. A move to the upside will trigger our BUY entry at 23.08, while a drop to 21.29 will trigger our SELL short entry. Follow your position with a 1.79 trailing stop. Tighten the stop to 0.9 once you have a 3.42 gain. VKTX closed Thursday at 22.46. Earnings Report Date: Jul 25, 2023. Beta: 0.67. Market-Cap: 2.242B. Optionable. TECHNOLOGY SECTOR SoundThinking, Inc. (SSTI: Technology/Software-Application) - SQUEEZE PLAY. A look at SSTI's daily chart shows what a price squeeze is all about. The constricted high-low daily trading range has produced a setup similar to a tightly coiled spring. Expect price to move sharply soon, with the direction yet to be determined. Let the upcoming market action resolve whether you will buy shares or sell short. To capture a move either way, place a BUY trigger at 21.74 and a SELL short trigger at 20.4. Once SSTI shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.34 and tighten to 0.67 on a 2.58 gain. SSTI closed Thursday at 21.20. Earnings Report Date: Aug 07, 2023. Beta: 1.48. Market-Cap: 259.6M. 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
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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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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. |