March 23, 2023 - The RightLine Report


Notes From The Editor

"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 them 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. While the majority still view trading stocks as a form of gambling, their lack of understanding usually keeps them from the most valuable profit-producing "tool" available anywhere - trading!

Trading is an extremely valuable resource for any student of the market. Why? Because it's such an efficient teacher. There's no better way to compact as much usable experience into such a short period of time.

Once you've learned the art of trading, you can apply it to any time frame - from minutes to years.

The repetition of strategic planning, entering positions under live conditions, implementing risk control and managing trades will improve your skills more effectively than anything else you could ever do.

Just remember to be patient. As with any skilled vocation, learning this craft requires several years to reach a high level of consistent performance - even if you are a fast learner!

Final thought for the day: "Any structure is only as solid as its foundation." One important block in the foundation of successful trading is the simple act of position sizing. We mention it often, but that's because it deserves the extra attention. This humble procedure inherently protects against serious account damage while allowing profits to accumulate - even during the most uncertain market conditions.

Trade well,

~ Thomas Sutton, Editor

Editor's Note: For more on reducing risk with Position Sizing, go to

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

Quick List

Stock     03/23     03/23      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

PTLO      21.03      0.32     21.64     20.18        1.46/0.73      2.34
PBT       23.42      0.44     23.81     22.42         1.39/0.7       1.7
PTGX      21.01     -0.03     21.69     19.77        1.92/0.96      2.72
RVMD      21.11      0.21     21.64        20        1.64/0.82      2.96

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 more on controlling risk go to the RightLine Risk Control System

For a glossary of terms unique to The RightLine Report go to: Glossary

Questions? Send us an email using our Contact Form.

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

Market Summary

The top US stock indices were mixed but near even on Thursday as traders contemplated a possible end to the Federal Bank's rate-hiking cycle with a backdrop of concerns regarding the actual state of the banking sector and broader economy. On the economic front, new home sales lower due to mortgage rate worries, while the number of initial jobless claims suggests that the job market is still strong despite pressure from the Fed's tightening campaign. In equities, the energy sector felt the heat as crude oil futures dropped below $70 a barrel, financials and consumer staples also slid down the hill. On the plus side, technology and communications stocks finished the session higher. Gold set a new 52-week high, treasury yields were down, and the USD/dollar closed near even.

                        Mar 22, 2023           Mar 23, 2023   
                  --------------------   --------------------
Dow                 32,030.11  -530.49     32,105.25    75.14
Nasdaq              11,669.96  -190.15     11,787.40   117.44
S&P 500              3,936.97   -65.90      3,948.72    11.75

NYSE Volume                      4.55B                  5.01B
NYSE Advancers                     767                  1,080
NYSE Decliners                   2,249                  1,932

Nasdaq Volume                       5B                  4.94B
Nasdaq Advancers                 1,265                  2,091
Nasdaq Decliners                 3,243                  2,349

                                 New Highs/Lows

                   03/16  03/17  03/20  03/21  03/22  03/23
NYSE New Highs        16     13     21     25     28     31
NYSE New Lows        177    199    134     44    102    212
Nasdaq New Highs      54     35     39     60     49     57
Nasdaq New Lows      284    340    314    127    190    314

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

TRADER'S TIP: "Selling & Shorting"

"It is one thing to take profits on a long position but quite another to go short. Shorting requires a much higher level of proof that the trend has turned. When your indicators tell you that a stock is too high, there is nothing wrong with taking profits. You need to set much more exacting parameters for shorting, making sure that a stock has in fact turned down, permitting you to short. Use the same approach at the bottoms - decide in advance what price action will confirm an upside trend reversal, permitting you to buy."

~ Alex Elder, Trader and Author

The Technical Analyst

SPX Daily Chart

For help with this chart, be sure to read "Understanding The Importance Of Support And Resistance"
and "Improve Your Trading With Moving Averages".

S&P 500 - 3948.72 March 23, 2023

52-Week High: 4637.30
52-Week Low: 3491.58
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 2897.32
Resistance 2: 2774.72
Resistance 1: 1387.36
Pivot: 2652.12
Support 1: 1264.76
Support 2: 2529.52
Support 3: 2406.92

NASDAQ Composite - 11787.40 March 23, 2023

52-Week High: 14646.90
52-Week Low: 10088.83
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 8781.49
Resistance 2: 8318.19
Resistance 1: 4159.09
Pivot: 7854.89
Support 1: 3695.79
Support 2: 7391.59
Support 3: 6928.29
Dow Industrials - 32105.25 March 23, 2023

52-Week High: 35492.22
52-Week Low: 28660.94
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 23336.51
Resistance 2: 22439.36
Resistance 1: 11219.68
Pivot: 21542.21
Support 1: 10322.53
Support 2: 20645.06
Support 3: 19747.91

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

Market Calendar

ECONOMIC REPORTS AND EVENTS (all times are Eastern):    

8:30 am	Durable goods	Feb.	
9:45 am	S&P Global flash U.S. services PMI	March
9.45 am	S&P Global flash U.S. manufacturing PMI

For a chart of typical Up or Down market reactions to specific major US economic reports 
go to:  Economic Indicator Effects

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
Stocks Covered Today    Stock Splits     

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.

Stocks Covered in This Issue


Portillo's Inc. (PTLO: Consumer Cyclical/Restaurants) - SQUEEZE PLAY. PTLO traders on both sides of the fence are now locked in a head-to-head shootout. Thursday's price range was the narrowest in over a week, as neither Bears or Bulls have been able to clearly gain the upper hand. This gives us an opportunity to catch the next directional move with little risk of loss. To do this we'll place both a long and a short trigger with a BUY at 21.64 and a SELL short trigger at 20.18. When one of the orders is filled, cancel the remaining order and enter a 1.46 trailing stop. When you've reached a 2.34 paper profit, tighten the stop to 0.73. PTLO closed at 21.03 on Thursday. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 1.145B. Optionable.


Permian Basin Royalty Trust (PBT: Energy/Oil & Gas Midstream) - SQUEEZE PLAY. PBT shareholders know what it feels like to be squeezed. Thursday's slim price range reveals uncertainty on both sides of the table, a situation which often resolves itself by either Bears or Bulls quickly gaining a clear advantage. The question is "who will win?" Near-term market action tell us whether we should sell short or we should buy shares instead. PBT closed Thursday at 23.42. The plan is to enter in the right direction by placing a BUY trigger at 23.81 and a SELL short trigger at 22.42. Once PBT establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.39. After you've collected a 1.7 profit, tighten the stop to 0.7. Earnings Report Date: N/A. Beta: 0.89. Market-Cap: 1.092B. Optionable.


Protagonist Therapeutics, Inc. (PTGX: Healthcare/Biotechnology) - SQUEEZE PLAY. In certain stocks a tightly constricted price range is a sign that neither bulls nor bears are confident of winning in the near term. This often means that the side that gives up first causes a quick move in the opposite direction. In these fear dominated skirmishes, opposing traders always benefit from the retreat. In the Squeeze Play setup you can actually play both sides of the inevitable surge. PTGX traders reached this state of stand-off on Thursday with the tightest range of the past seven days. You can take advantage of their efforts by placing a low risk BUY trigger at 21.69 and a SELL short trigger at 19.77. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.92 which can be tightened to 0.96 on a 2.72 gain. PTGX closed Thursday at 21.01. Earnings Report Date: May 02, 2023. Beta: 2.00. Market-Cap: 1.077B. Optionable.

Revolution Medicines, Inc. (RVMD: Healthcare/Biotechnology) - SQUEEZE PLAY. Sometimes when Bulls and Bears face off in the market arena for a typical day-long battle, there is no clear winner. This is evident when the daily price range contracts to an unusually narrow state. RVMD found itself in this condition on Thursday when neither buyers or sellers were able to push ahead. This setup provides traders a chance to hop on board the next breakout - whether it's to the upside or down - with little risk of loss. To do this place a BUY order at 21.64 and a SELL short trigger at 20. When RVMD moves outside of Thursday's range, one of the orders will be filled. Once you hold a position of shares, cancel the unfilled order and place a 1.64 trailing stop. After you've got a 2.96 profit, tighten the stop to 0.82. RVMD closed at 21.11 on Thursday. Earnings Report Date: May 08, 2023. Beta: 1.49. Market-Cap: 2.241B. 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.

Editorial    Quick List    Market Summary    Technical Analyst    Market Calendar   
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  
---------------- -------     --------    -------     ------  -------   

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.      

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.

RightLine Risk Control Calculator A simple yet powerful tool, the Risk Control Calculator helps you manage risk by recommending a maximum number of shares to purchase. Available in the RightLine Member's Area.


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