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March 17, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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Global news is constantly making headlines. Regardless of what happens as a result of volatile world events, there are always opportunities to make profits. With this in mind, here is a brief review of a few basic rules about trading in a news-driven environment:
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"QUICK LIST"
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Stock 03/17 03/17 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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BKR 34.98 1.32 35.67 2.77/1.39 2.5
VTOL 37.94 1.38 38.62 3.1/1.55 2.14
HP 40.43 1.83 41.57 4.33/2.17 3.12
VET 20.58 0.79 21.23 19.72 1.51/0.76 1.64
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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US stocks were significantly higher on Thursday as the markets chalked up a third consecutive session of gains despite ongoing geopolitical concerns. Leading headlines included the Federal Reserve Bank raising its target fed funds rate on Wednesday by 25 basis points to a range of 0.25% to 0.50%, its first rate hike since 2018. A loaded economic calendar revealed initial jobless claims are declining and housing starts surprising have increased, while industrial production met expectations and the Philly Fed Manufacturing Business Outlook accelerated further into the expansion zone. In equities, retailer Dollar General (DG $222) met earnings expectations, while kitchen and home specialty retailer Williams-Sonoma (WSM $161) reported stellar results. Shares of both companies finished higher. Gold and oil prices were sharply higher, treasuries were mixed, and the USD/dollar slipped lower. Mar 16, 2022 Mar 17, 2022
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Dow 34,063.10 518.76 34,480.76 417.66
Nasdaq 13,436.55 487.93 13,614.78 178.23
S&P 500 4,357.86 95.41 4,411.67 53.81
NYSE Volume 6.32B 5B
NYSE Advancers 2,664 2,624
NYSE Decliners 698 719
Nasdaq Volume 6.48B 5.55B
Nasdaq Advancers 3,734 3,503
Nasdaq Decliners 976 1,195
New Highs/Lows
03/10 03/11 03/14 03/15 03/16 03/17
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NYSE New Highs 44 58 32 27 44 52
NYSE New Lows 241 338 724 390 174 67
Nasdaq New Highs 26 51 36 28 34 57
Nasdaq New Lows 313 446 921 562 254 114
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TRADER'S TIP:
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TRADER'S TIP: "Three Possibilities" As traders and investors we've learned not to spend too much time speculating on market direction, but to focus on careful planning and trade management. It's far better to prepare and have a specific plan ready for any possible price action than to become so devoted to our expectations that we fail to plan for the opposite of what we expect to happen. The market, and our chosen stocks can really only do three simple things that affect price; (1) move up, (2) move down, or (3) stay the same. Unless our trading plan includes specific instructions on what we will do in the event any one of these three scenarios occur, the plan is incomplete. **************************
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 - 4411.67 March 17, 2022 52-Week High: 4818.62 52-Week Low: 3853.50 Daily Trend: UP Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4568.01 Resistance 2: 4398.87 Resistance 1: 4301.59 Pivot: 4229.73 Support 1: 4132.45 Support 2: 4060.59 Support 3: 3891.45 https://www.prorightline.com/rlch/031722SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Thursday, March 17, 2022: 17-Mar 8:30 am Initial jobless claims 17-Mar 8:30 am Continuing jobless claims 17-Mar 8:30 am Building permits (SAAR) 17-Mar 8:30 am Housing starts (SAAR) 17-Mar 8:30 am Philadelphia Fed manufacturing survey 17-Mar 9:15 am Industrial production index 17-Mar 9:15 am Capacity utilization rate Friday, March 18, 2022: 18-Mar 10 am Existing home sales (SAAR) 18-Mar 10 am Index of 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: "Is Genius A Requirement?" You don't have to be "gifted" to trade intelligently. Though the skills needed to trade successfully can certainly take several years to acquire, trading isn't rocket science. While a high IQ isn't required, persistence and discipline are. Fortunately these two qualities are available to anyone who really wants them. ***********************************
STOCKS COVERED IN THIS ISSUE
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ENERGY SECTOR Baker Hughes Company (BKR: Energy/Oil & Gas Equipment & Services) - BULLISH BOUNCE. Looking a bit frayed after sliding downhill in recent sessions, on Thursday BKR seemed intent on initiating a rebound. With moving average support nearby, BKR is at a logical place for Bulls to regroup and extend the familiar uptrend that shareholders have become accustomed to. On continued buying, plan on taking long entries with a BUY at 35.67. Manage risk with a 2.77 stop. Tighten your stop to 1.39 when you have a 2.5 profit. BKR ended the day at 34.98. Earnings Report Date: Apr 19, 2022. Beta: 1.45. Market-Cap: 38.796B. Optionable. Bristow Group Inc. (VTOL: Energy/Oil & Gas Equipment & Services) - BULLISH BOUNCE. Here is another example of a stock in an established uptrend that has recently experienced a counter-trend drop. The sliding price action has now found support near a moving average zone, bouncing upward during Thursday's session to close at 37.94. Anticipate the rebound to continue, and be ready to buy VTOL at 38.62. Follow your entry with a trailing stop of 3.1 which can be tightened to 1.55 on a 2.14 profit. Earnings Report Date: May 24, 2022. Beta: N/A. Market-Cap: 1.118B. Optionable. Helmerich & Payne, Inc. (HP: Energy/Oil & Gas Drilling) - BULLISH BOUNCE. Up-trending stocks like HP have a tendency to bounce their way skyward rather than travel higher in a straight line. After touching down to a moving average support level on Thursday, HP is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 41.57 if positive price action occurs. As always, follow your entry with a trailing stop. A 4.33 trailer should work well with HP. Tighten it to 2.17 on a 3.12 gainer. Earnings Report Date: Apr 27, 2022. Beta: 1.91. Market-Cap: 4.554B. Optionable. Vermilion Energy Inc. (VET: Energy/Oil & Gas E&P) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in VET's narrowest trading range of the past seven sessions. With neither group able to take complete control on Thursday, the stock's short term destiny is up for grabs. You can capitalize on this unusually tight condition by placing both a BUY order at 21.23 and a SELL order at 19.72. Regardless of which order is triggered, cancel the other one and follow your entry with a 1.51 trailing stop. Tighten the stop to 0.76 once you have a 1.64 gain. VET closed Thursday at 20.58. Earnings Report Date: Apr 26, 2022. Beta: 3.54. Market-Cap: 3.74B. 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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