June 25, 2020 - The RightLine Report
Notes From The Editor
Trading Rule #1 - Take Full Responsibility
Even though the dictionary has a different meaning for the word "responsibility," I like to think of it as the ability to respond appropriately to any challenge or situation. Awareness of our "Responsibility" leads to massive improvement in our "Response Ability." Enhanced response-ability lets us make effective changes in the way we approach the stock market. All it takes is a little practice and a lot of humility ...
Many years ago I told a friend that a well-known broker in Chicago was managing my investment account. I also told him that after only three months my account was down more than 30-percent. He said, "Wow Thomas, at that rate all your money will be gone in six months!"
I replied, "Yes, I know! What do you think should I do?" He scratched his head, thought for a few seconds and said, "I'm not much of an investor, but I'm sure I can beat your Chicago broker." Then with a mischievous grin he said, "You give me the rest of the money in your account, and I guarantee it will take at least SEVEN months before it's all gone!"
Of course he was kidding, and believe me I got the point. My friend was trying to wake me up to the fact that I needed to take responsibility for how my account was managed. Now I'm grateful that he was willing to say what he did, for it helped me to snap out of my investor-hypnotic trance and get serious about a real financial education.
Someone please tell me why the average investor spends virtually zero time learning how to trade, yet still expects to make money in stocks?
By the way, there are some good brokers out there. A few even use the RightLine Reports to help guide their clients in a positive direction. In fact, our Reports make it easier for brokers to explain why it is so important for individuals to take full responsibility for their financial outcome.
And in my humble opinion, deciding to take full responsibility is the most important step any trader can take.
- Thomas Sutton, Editor
Stocks Covered Today...Stock Splits...
Quick List
Stock 06/25 06/25 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
HUYA 18.54 0.56 18.95 1.45/0.72 1.82
UONE 22.00 -2.87 24.32 20.98 3.34/1.67 0.48
CWH 25.86 0.45 26.76 2.47/1.24 4.54
IMMU 35.12 0.21 35.59 2.77/1.39 3.28
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" and always use the RightLine Risk Control Calculator before entering any position. For access to the Risk Calculator, go to http://www.rightline.net and login to the Member's area.
For more on controlling risk go to the RightLine Risk Control System
For a glossary of terms unique to The RightLine Report go to: Glossary
Problems? If you have any difficulty viewing this report in your email go to this page where you will find a list of items that may affect normal viewing within your email client.
Questions? Send us an email using our contact form at: http://www.rightline.net/home/contact.html
Stocks Covered Today...Stock Splits...
Market Summary
Stocks closed higher on Thursday following a truckload of new economic data. On the plus side, durable goods orders were up more than expected for May and regional manufacturing activity surged back up into positive territory. On the downside, unemployment claims remain elevated, trade and wholesale inventory data fell short of forecasts, and GDP for the first quarter was unrevised at a 5% contraction rate. In equities, Darden Restaurants (DRI $75) reported an adjusted loss that was smaller than predicted, Disney (DIS $111) shares were under pressure after the company announced a delay in the reopening of Disneyland Resort in California, and KB Home (KBH $29) posted a mostly disappointing earning announcement. Gold, oil and the USD/dollar all finished higher, treasury yields were down.
Jun 24, 2020 Jun 25, 2020
-------------------- --------------------
Dow 25,446 -710.16 25,746 +299.66
Nasdaq 9,909 -222.20 10,017 +107.84
S&P 500 3,050 -80.96 3,084 +33.43
NYSE Volume 5.64B 4.87B
NYSE Advancers 350 1920
NYSE Decliners 2635 1042
Nasdaq Volume 5.53B 4.62B
Nasdaq Advancers 605 2224
Nasdaq Decliners 2781 1102
New Highs/Lows
06/18 06/19 06/22 06/23 06/24 06/25
--------------------------------------------
NYSE New Highs 38 68 64 63 15 25
NYSE New Lows 4 6 6 3 12 16
Nasdaq New Highs 109 167 150 200 54 74
Nasdaq New Lows 5 8 15 9 12 15
Stocks Covered Today...Stock Splits...
TRADER'S TIP: "Too Many Strategies? Pick One"
Many traders get caught up in the "next new thing" syndrome, and like a lumberjack on a river full of logs they are always hopping from one trading strategy to another. Too many distractions often lead to confusion, and ultimately frustration. Just remember that the real market battle doesn't take place on Wall Street. It goes on between your ears, inside your head. Instead of sabotaging success, learn to stick with one thing until you know it inside and out. Only then should you move on to the "next new thing" - if you're so inclined.
The Technical Analyst
For help with this chart, be sure to read "Understanding The Importance Of Support And Resistance"
and "Boost Your Profits With Moving Averages".
S&P 500 - 3083.76 June 25, 2020
52-Week High: 3393.52
52-Week Low: 2191.86
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 3452.71
Resistance 2: 3262.84
Resistance 1: 3180.29
Pivot: 3072.97
Support 1: 2990.42
Support 2: 2883.10
Support 3: 2693.23
NASDAQ Composite - 10017.00 June 25, 2020
52-Week High: 10221.85
52-Week Low: 6631.42
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 11102.83
Resistance 2: 10451.92
Resistance 1: 10199.02
Pivot: 9801.01
Support 1: 9548.11
Support 2: 9150.10
Support 3: 8499.19
Dow Industrials - 25745.60 June 25, 2020
52-Week High: 29568.57
52-Week Low: 18213.65
Daily Trend: DOWN
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 29310.92
Resistance 2: 27543.07
Resistance 1: 26707.26
Pivot: 25775.22
Support 1: 24939.41
Support 2: 24007.37
Support 3: 22239.52
Stocks Covered Today...Stock Splits...
Market Calendar
ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, June 22, 2020: 22-Jun 8:30 am Chicago Fed national activity index 22-Jun 10 am Existing home sales Tuesday, June 23, 2020: 23-Jun 9:45 am Markit manufacturing index (flash) 23-Jun 9:45 am Markit services index (flash) 23-Jun 10 am New home sales Wednesday, June 24, 2020: 24-Jun 9 am FHFA home price index (year-over-year change) Thursday, June 25, 2020: 25-Jun 8:30 am Initial jobless claims (regular state program, SA) 25-Jun 8:30 am Continuing jobless claims 25-Jun 8:30 am GDP (revision) 25-Jun 8:30 am Durable goods orders 25-Jun 8:30 am Core capital goods orders 25-Jun 8:30 am Trade in goods (advance report) Friday, June 26, 2020: 26-Jun 8:30 am Personal income 26-Jun 8:30 am Consumer spending 26-Jun 8:30 am Core inflation 26-Jun 10 am Consumer sentiment index (final) For a chart of typical Up or Down market reactions to specific major US economic reports go to: Economic Indicator Effects
Stocks Covered Today...Stock Splits...
TRADER'S TIP: "Slippage"
"Price slippage" is the difference in the price of the stock that appears on the ticker at the time you place a trade, and the price at which your order is actually filled. "Transaction slippage" is the difference between estimated and actual transaction costs. To control slippage, always trade liquid stocks, avoid low volume issues, and use limit orders whenever possible.
Stocks Covered in This Issue
COMMUNICATION SERVICES SECTOR
HUYA Inc. (HUYA: Communication Services/Entertainment) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, HUYA 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 18.54, plan to buy shares at 18.95 and use a 1.45 trailing stop. Tighten the stop to 0.72 on a 1.82 gain. Earnings Report Date: N/A. Beta: 0.83. Market-Cap: 4.069B. Optionable.
Urban One, Inc. (UONE: Communication Services/Broadcasting) - SQUEEZE PLAY. The ticker for Thursday's session shows UONE is now stuck in a tight price band. With the cyclical contraction and expansion nature of volatility in force, we should see a new period of price expansion in the days ahead. To improve the odds of catching the next directional wave, place a BUY trigger at 24.32 and a SELL short trigger at 20.98. When UONE starts moving out of its narrow range, your order will be triggered. Once you're in the trade, cancel the opposing trigger and set a 3.34 trailing stop. Upon reaching a 0.48 profit, resize the stop to 1.67. Earnings Report Date: N/A. Beta: 0.84. Market-Cap: 253.015M. Not Optionable.
CONSUMER CYCLICAL SECTOR
Camping World Holdings, Inc. (CWH: Consumer Cyclical/Recreational Vehicles) - NEW HIGH DIP. Another high-flyer, CWH just recently set a new 12-month max price. Having dipped since then, CWH's bullish response to an encounter with moving average support on Thursday shows that the stock may be ready for another move skyward. Now at 25.86, an upward push to 26.76 will signal a BUY entry. Once in the trade, place a 2.47 trailing stop which can be tightened to 1.24 once you've gained 4.54. Earnings Report Date: N/A. Beta: 4.07. Market-Cap: 2.282B. Optionable.
HEALTHCARE SECTOR
Immunomedics, Inc. (IMMU: Healthcare/Biotechnology) - NEW HIGH DIP. Confident in its ability to continue trending skyward, IMMU's pullback from a new 52-week high sets the stage for a return to that peak. Price activity on Thursday provided a setup, with the BUY trigger ready at 35.59 should IMMU reach that level. Follow up your entry with a 2.77 trailing stop. Tighten it to 1.39 when you have a 3.28-point gain. IMMU closed Thursday at 35.12. Earnings Report Date: Aug 05, 2020. Beta: 3.36. Market-Cap: 8.11B. Optionable.
IMPORTANT: Before entering any positions, always use the Risk Control System to determine the level of acceptable risk and the maximum number of shares to buy. Use Gap Adjusted Entries to reset the Entry Price for stocks that gap beyond recommended entry levels.
Stocks Covered Today...Stock Splits...
Stock Splits
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 (Effective 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
---------------- ------- -------- ------- ------ -------
Currently there are no upcoming stock splits on the major US exchanges.
Split details are also available online at the RightLine Online Stock Split Calendar. For a detailed look at the different stages of a Stock Split, Click Here.
A simple yet powerful tool, the Risk Control Calculator helps you manage risk by recommending a maximum number of shares to purchase. Available to all RightLine subscribers. For access, go to http://www.rightline.net and login to the Member's area.
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
Click Here To Unsubscribe