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March 10, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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Everyone knows how impulsive the market is at times, and we've all felt the g-forces present when stocks choose to mimic roller coasters. The unpredictable up-and-down gyrations can be a challenge, so here are a few suggestions that will help you stay on track no matter what route the market decides to take!
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"QUICK LIST"
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Stock 03/10 03/10 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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SRI 18.29 -0.21 18.6 1.45/0.73 1.54
FLNG 21.44 -0.16 21.87 20.28 1.59/0.8 2.32
AORT 20.55 -0.18 20.88 1.47/0.74 1.62
POWL 21.99 -0.33 22.36 20.98 1.38/0.69 2.36
IRT 25.96 -0.18 26.41 1.76/0.88 1.42
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 stock averages declined on Thursday after talks between Russia and Ukraine ended with no positive announcements. Economic data offered zero assistance to bulls, as the February inflation show more increases over already inflated consumer prices, while unemployment claims also expanded. In equities, CrowdStrike (CRWD $191) reported stellar earnings and issued upbeat guidance, as Amazon (AMZN $2,936) announced a new $10 billion share repurchase plan and a 20-for-1 stock split. Treasuries and oil prices were lower, the USD/dollar and gold finished the session higher. Mar 9, 2022 Mar 10, 2022
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Dow 33,286.25 653.61 33,174.07 -112.18
Nasdaq 13,255.55 459.99 13,129.96 -125.58
S&P 500 4,277.88 107.18 4,259.52 -18.36
NYSE Volume 5.69B 5.01B
NYSE Advancers 2,498 1,358
NYSE Decliners 834 1,935
Nasdaq Volume 5.4B 5.04B
Nasdaq Advancers 3,680 1,696
Nasdaq Decliners 1,019 2,891
New Highs/Lows
03/03 03/04 03/07 03/08 03/09 03/10
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NYSE New Highs 104 137 186 108 18 44
NYSE New Lows 126 275 486 500 97 241
Nasdaq New Highs 59 64 75 52 39 26
Nasdaq New Lows 315 542 805 793 167 313
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TRADER'S TIP:
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TRADER'S TIP: "Trading Frequency" "If a strategy is profitable, the more it trades the more money we should make. I apologize for stating what should be obvious but you would be surprised at how often I hear discussions about selecting systems with the highest level of "expectancy" or highest "profit factor" without relating these measurements to the system's trading frequency. Simply stated, our goal should be to show the most profit with the least amount of risk, and trading frequency plays a critical role in maximizing profitability and controlling our risk." ~Chuck Lebeau, Trader and author **************************
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 - 4259.52 March 10, 2022 52-Week High: 4818.62 52-Week Low: 3853.50 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4616.20 Resistance 2: 4478.96 Resistance 1: 4403.91 Pivot: 4341.72 Support 1: 4266.67 Support 2: 4204.49 Support 3: 4067.25 https://www.prorightline.com/rlch/031022SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, March 07, 2022: 07-Mar 3 pm Consumer credit Tuesday, March 08, 2022: 08-Mar 6 am NFIB small-business index 08-Mar 8:30 am Foreign trade deficit 08-Mar 10 am Wholesale inventories (revision) Wednesday, March 09, 2022: 09-Mar 10 am Job openings 09-Mar 10 am Quits Thursday, March 10, 2022: 10-Mar 8:30 am Initial jobless claims 10-Mar 8:30 am Continuing jobless claims 10-Mar 8:30 am Consumer price index 10-Mar 8:30 am Core CPI 10-Mar 8:30 am CPI (year-over-year 10-Mar 8:30 am Core CPI (year-over-year) 10-Mar 1 pm Real domestic nonfinancial debt (SAAR) 10-Mar 1 pm Real household wealth (SAAR) 10-Mar 2 pm Federal budget deficit Friday, March 11, 2022: 11-Mar 10 am UMich consumer sentiment index (preliminary) 11-Mar 10 am Five-year inflation expectations (preliminary) 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: "Narrow Range Breakouts" Stock prices will often become trapped inside of a narrowing price range. This powerful pattern results from a series of lower-highs and higher-lows, which squeeze prices into an ever-tightening pattern. Similar to pressure building up inside of a bottle, the increasing tension between buyers and sellers shifts the price dynamics into "breakout mode." The resulting price move can be very fast and powerful. Once price enters breakout mode, we can reasonably predict that there will soon be an expansion in price volatility - but we can't always predict which direction to enter the potential trade. To solve this dilemma, we prepare both a buy and a sell-short entry, and then let the inevitable price movement "pull" us into the trade. ***********************************
STOCKS COVERED IN THIS ISSUE
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CONSUMER CYCLICAL SECTOR Stoneridge, Inc. (SRI: Consumer Cyclical/Auto Parts) - BULLISH BOUNCE. Everyone familiar with price charts knows that a stock tends to bounce its way higher rather than move in a straight line. The lower levels of these short-term rebounds offer a safe and often early entry into stocks that are in the process of establishing longer-term uptrends. SRI's reaction to support on Thursday created a Bullish Bounce setup with a BUY entry trigger at 18.6. Use a 1.45 trailing stop, which should work well with SRI's typical daily range. Tighten it to 0.73 on a 1.54 profit. SRI closed at 18.29 on Thursday. Earnings Report Date: Apr 26, 2022. Beta: 1.25. Market-Cap: 497.38M. Optionable. ENERGY SECTOR FLEX LNG Ltd. (FLNG: Energy/Oil & Gas Midstream) - SQUEEZE PLAY. A look at FLNG'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 21.87 and a SELL short trigger at 20.28. Once FLNG shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.59 and tighten to 0.8 on a 2.32 gain. FLNG closed Thursday at 21.44. Earnings Report Date: N/A. Beta: 0.36. Market-Cap: 1.171B. Optionable. HEALTHCARE SECTOR Artivion, Inc. (AORT: Healthcare/Medical Devices) - 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. AORT's current price action near moving average support signals a potential BUY entry at 20.88, followed by a 1.47 trailing stop which can be tightened to 0.74 upon earning 1.62. AORT closed Thursday at 20.55. Earnings Report Date: Apr 27, 2022. Beta: 1.53. Market-Cap: 824.374M. Optionable. INDUSTRIALS SECTOR Powell Industries, Inc. (POWL: Industrials/Electrical Equipment & Parts) - SQUEEZE PLAY. Thursday's trading action forced POWL'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 POWL 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 22.36 if POWL moves higher, and place your order to SELL short at 20.98 if price declines to that level. As usual follow your entry with a trailing stop, 1.38 should be sufficient. Reduce your stop to 0.69 on a 2.36 gain. POWL closed Thursday at 21.99. Earnings Report Date: May 02, 2022. Beta: 1.32. Market-Cap: 258.686M. Optionable. REAL ESTATE SECTOR Independence Realty Trust, Inc. (IRT: Real Estate/REIT-Residential) - BULLISH BOUNCE. Among other strengths, the Bullish Bounce protects traders from buying a stock "at the top" of its current cycle. The entry into this setup always takes place in upward-moving stocks that have retreated a bit under normal conditions. Now sitting at 25.96, IRT is on our radar for a BUY entry at 26.41. If you purchase shares of IRT, be sure to also place a trailing stop of 1.76. Snug it up to 0.88 on a 1.42 gain. Earnings Report Date: Apr 26, 2022. Beta: 0.94. Market-Cap: 5.754B. 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
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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 ---------------- ------- -------- ------- ------ ------- ACM Research ACMR 3/4/2022 3/24/2022 3-for-1 Yes PAM Transport PTSI 3/9/2022 3/30/2022 2-for-1 Yes 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/ ======================================================================
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 800-737-4518. |