March 26, 2022 - The RightLine Report 

 
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                      NOTES FROM THE EDITOR
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Want to improve your trading results? Most traders say that they do. If you're really serious about it then get ready to change the formula that is producing those results. This means making some important changes in your perceptions, your attitudes, and your actions.

There's an almost magical aspect in each of us that determines the outcome of our efforts. Finding that optimum place is one of the most rewarding journeys you'll ever make. Many traders discover along the way just how extremely valuable they are as a person. Others give up when faced with changing their own deeply rooted negative opinions of themselves.

This trek requires commitment, patience, and belief in the process. And like most worthwhile expeditions there are plenty of obstacles along the way to challenge even the most determined among us.

- Want To Make Big Bucks? First Learn How to make Small Change

One attribute of all great traders is the ability to adapt. That's just another way of saying they have learned how to recognize the changes they need to make, and have developed the ability to make those changes.

This sounds simple enough, but anyone who has ever attempted to overcome a bad habit knows how frustrating change can be. Fortunately the process of change is an excellent teacher that provides exactly what we need, exactly when we need it.

The secret to applying this insight is learning how to recognize what we really need, and then genuinely accept it ... even if it isn't what we necessarily want at that moment.

The first step toward improving your trading has nothing to do with money management, stocks, brokers, or strategies. Though most of our training at RightLine focuses on those areas, the process of change is much more personal.

Let's look at three of the most valuable assets you have ... your perspective, your attitudes, and your actions.

- Say Hello To Your Perspective ...

There's a strong tendency for each one of us to believe that the way WE view the world is the way everyone else views the world. We don't really think about it, we just assume it. This inclination to feel that our perspective is the only one that matters begins in early childhood. Once in place, it creates our results in life until we become aware of two important things:

1) We have our own unique perspective

2) We can change our perspective if we choose.

The Early Days ... Think about how a ten-month old child views the world. If they see something they want, they reach for it. If mom or dad says "no, that's not good for you," the baby ignores them and reaches for it anyway. Mom and Dad have experience, the baby doesn't.

After a certain amount of pain and suffering a young toddler begins to accept the parent's point of view. However since the parent perspective is just too complex for a child, the youngster views most of it as just unnecessary noise.

As a result, the child gets a mix of baby and parent perspective. Attitudes and actions are created around this perspective. Years later the young person has grown up to be an adult trader. However, deep down inside are many of the attitudes of the child.

It's often said, "the boy is the father of the man." The child has been around much longer than the adult trader. So guess who usually wins if there is a conflict between self-destructive babyish attitudes and a mature trader mind-set?

"Give it to me!"

The kid in us just wants the money ... or candy ... now! The mature trader says "hang on, there are some things we need to do in order to get the money." Let's hope that patience prevails, because putting too much attention on the money is the WORST thing a trader can do.

If you struggle with being consumed by thoughts of money, you can relax .. that's normal for a time. However, to be truly successful you'll have to change the way you think about wealth.

Most people begin their trading journey by focusing way too much on the potential financial gains. Though it's the most common way to start, it isn't the best way. You can bet that the carrot-on-the-stick holding our attention will always be just beyond our reach, UNTIL we change our perspective.

Bottom Line: The ability to choose our perspective is a powerful skill that opens doors to better opportunities. When we choose how we view things, we can choose the best view. It's like choosing the best seat at a sporting event instead of being stuck with whatever place we're given.

Enjoy the weekend,

- Thomas Sutton, Editor 

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                           "QUICK LIST"
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Stock     03/25     03/25      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

GES       22.01      0.22     22.45     20.95         1.5/0.75      2.86
FULC      20.50      1.10     20.89     18.99         1.9/0.95      2.22
VERA      22.72      1.11     23.42        21        2.42/1.21      3.74
NLSN      22.28     -0.07     22.94      21.4        1.54/0.77      2.64
ACMR      21.75     -0.06     22.29     20.15        2.14/1.07      4.24


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 US stock indices were mixed on Friday as traders continued to focus on global events along with rising commodity and energy prices. Adding to the sentiment are concerns over how aggressive the Fed will be in rasing interest rates in the weeks ahead. In economic news, consumer sentiment softened and pending home sales dropped more than predicted. Oil prices moved higher, gold and treasuries finishedlower, while the USD/dollar declined.


                     Friday                 On The Week      
                  --------------------   --------------------
Dow                 34,861.24   153.30      +106.31     0.31%
Nasdaq              14,169.30   -22.54      +275.46     1.98%
S&P 500              4,543.06    22.90       +79.94     1.79%

NYSE Volume                      4.34B                       
NYSE Advancers                   1,700                       
NYSE Decliners                   1,607                       

Nasdaq Volume                     5.6B                       
Nasdaq Advancers                 1,948                       
Nasdaq Decliners                 2,730                       

                                 New Highs/Lows

                   03/18  03/21  03/22  03/23  03/24  03/25
                 --------------------------------------------
NYSE New Highs        59    118     82     82     95    169
NYSE New Lows         57     61     74     80     98    187
Nasdaq New Highs      60     67     82     65     77     91
Nasdaq New Lows       78    126    130    114    103    168

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                              TRADER'S TIP:  
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TRADER'S TIP: "Profits Improve With Technical Timing"

Regardless of the reasons you decide to buy a stock, Technical Analysis is always helpful when it comes to timing entries. Support and resistance on the charts may be unfamiliar to most investors, but they have a huge impact on stock price movement. 
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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 - 4543.06 March 25, 2022

52-Week High: 4818.62
52-Week Low: 3917.12
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 4747.92
Resistance 2: 4626.19
Resistance 1: 4584.62
Pivot: 4504.46
Support 1: 4462.89
Support 2: 4382.73
Support 3: 4261.00
https://www.prorightline.com/rlch/032522SPX.jpg

NASDAQ Composite - 14169.30 March 25, 2022

52-Week High: 16212.23
52-Week Low: 12555.35
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 15095.95
Resistance 2: 14559.74
Resistance 1: 14364.52
Pivot: 14023.53
Support 1: 13828.31
Support 2: 13487.32
Support 3: 12951.11


Dow Industrials - 34861.24 March 25, 2022

52-Week High: 36952.65
52-Week Low: 32071.41
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 35917.03
Resistance 2: 35316.14
Resistance 1: 35088.69
Pivot: 34715.25
Support 1: 34487.80
Support 2: 34114.36
Support 3: 33513.47


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                             MARKET CALENDAR
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--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
Monday, March 28, 2022:
28-Mar  8:30 am   Trade in goods, advance report

Tuesday, March 29, 2022:
29-Mar   9 am   Case-Shiller national house price index (year-on-year)
29-Mar   9 am   FHFA national house price index (year-on-year)
29-Mar  10 am   Consumer confidence index
29-Mar  10 am   Job openings
29-Mar  10 am   Quits

Wednesday, March 30, 2022:
30-Mar  8:15 am   ADP employment report
30-Mar  8:30 am   GDP revision (SAAR)
30-Mar  8:30 am   Gross domestic income (SAAR)
30-Mar  8:30 am   Corporate profits (year-on-year)

Thursday, March 31, 2022:
31-Mar  8:30 am   Initial jobless claims
31-Mar  8:30 am   Continuing jobless claims
31-Mar  8:30 am   Nominal personal income
31-Mar  8:30 am   Nominal consumer spending
31-Mar  8:30 am   PCE price index
31-Mar  8:30 am   Core PCE price index
31-Mar  8:30 am   PCE price index (year-on-year)
31-Mar  8:30 am   Core PCE price index (year-on-year)
31-Mar  8:30 am   Real disposable income
31-Mar  8:30 am   Real consumer spending
31-Mar  9:45 am   Chicago PMI

Friday, April 01, 2022:
01-Apr  8:30 am   Nonfarm payrolls
01-Apr  8:30 am   Unemployment rate
01-Apr  8:30 am   Average hourly earnings
01-Apr  8:30 am   Labor-force participation rate, ages 25-54
01-Apr  9:45 am   Markit manufacturing PMI (final)
01-Apr  10 am   ISM manufacturing index
01-Apr  10 am   Construction spending
01-Apr  Varies   Motor vehicle sales

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: "Paid Two Ways"

"When it comes to trading the stock market, everyone is paid two ways - in money and experiences. Learn from the experiences first, and the money will follow." 

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                      STOCKS COVERED IN THIS ISSUE    
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CONSUMER CYCLICAL SECTOR

Guess', Inc. (GES: Consumer Cyclical/Apparel Retail) - SQUEEZE PLAY. One interesting trait of price volatility is that it cycles back and forth through periods of expansion and contraction. Stocks that have recently seen their daily price range shift from an average or wide range to an extremely contracted state are ideal candidates for expansive price moves. In many cases the next move is relatively fast and covers a sizable amount of territory. To take advantage of these trades we use both a BUY and a SELL entry. This allows us to enter in whichever direction the breakout takes. In GES's case we will enter a BUY should it reach the 22.45 level, or a SELL short trade if it drops to 20.95. As usual a trailing stop is essential, 1.5 which should be tightened to 0.75 on a 2.86 gain. GES closed Friday at 22.01. Earnings Report Date: May 25, 2022. Beta: 2.10. Market-Cap: 1.43B. Optionable.

HEALTHCARE SECTOR

Fulcrum Therapeutics, Inc. (FULC: Healthcare/Biotechnology) - SQUEEZE PLAY. FULC is caught in a dilemma. The stock's compressed price range on Friday 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. FULC is now at 20.50. We can capture price action either way by placing a BUY trigger at 20.89 and a SELL short trigger at 18.99. Once FULC 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 1.9. When you acquire a 2.22 profit, tighten the stop to 0.95. Earnings Report Date: May 04, 2022. Beta: 1.68. Market-Cap: 833.063M. Optionable.

Vera Therapeutics, Inc. (VERA: Healthcare/Biotechnology) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in VERA's narrowest trading range of the past seven sessions. With neither group able to take complete control on Friday, 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 23.42 and a SELL order at 21. Regardless of which order is triggered, cancel the other one and follow your entry with a 2.42 trailing stop. Tighten the stop to 1.21 once you have a 3.74 gain. VERA closed Friday at 22.72. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 613.885M. Not Optionable.

INDUSTRIALS SECTOR

Nielsen Holdings plc (NLSN: Industrials/Consulting Services) - SQUEEZE PLAY. Trader indecision has put NLSN squarely in the center of a Bull versus Bear standoff. This tight spot should soon give way to a clear winner in the short-term, and we want to be in position for the move. To do that we've set a BUY entry at 22.94 and a SELL short entry at 21.4. Now it's up to NLSN to show us which entry will be filled. Once the trade is underway place a 1.54 trailing stop, which can be tightened to 0.77 after you achieve a 2.64 profit. NLSN closed on Friday at 22.28. Earnings Report Date: May 04, 2022. Beta: 1.41. Market-Cap: 8.009B. Optionable.

TECHNOLOGY SECTOR

ACM Research, Inc. (ACMR: Technology/Semiconductor Equipment & Materials) - 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 ACMR. A move to the upside will trigger our BUY entry at 22.29, while a drop to 20.15 will trigger our SELL short entry. Follow your position with a 2.14 trailing stop. Tighten the stop to 1.07 once you have a 4.24 gain. ACMR closed Friday at 21.75. Earnings Report Date: May 04, 2022. Beta: 0.62. Market-Cap: 1.278B. 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  
---------------- -------     --------    -------     ------  -------   
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/ 

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                           TRADER'S CORNER
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"Proactive Trading"

Every trading plan should include proactive features to make sure that the trader behind the plan isn't over-reacting to market noise - a term used to describe any news or price and volume fluctuations, which do not provide meaningful information about the market's direction. We've all seen stocks go up on "negative" news and down on "positive news." This flies in the face of common sense, which says there should always be a relationship between the news as we perceive it and price movement. However, the market is a fickle machine, and often moves in the opposite direction most people would expect.

As daunting as it may seem sometimes, filtering out the "noise" is a relatively simple task, but it requires that we know how to recognize the scrambled message in the market's daily broadcast. Keep in mind that the message isn't hidden in some secret, mysterious way, but that it merely gets lost in the glut of information generated by the industry. The US stock market is the largest in the world, and everyone associated with it has an agenda. Institutional traders, market makers, analysts, retail investors, and the news media all have a vested interest, and those who are the most vocal or control the broadest audience don't necessarily provide the best information when it comes to YOUR profits.

Unlike most traders and investors who just react to the loudest market voice in a knee jerk fashion, proactive traders anticipate possible market direction and devise a plan of action for each - up, down, or sideways. Proactive trading revolves around having a detailed, predetermined plan, which includes elements that prompt us to take intelligent action at the proper time. To do this successfully we need to know what the market is saying.

You've probably heard experienced traders say it's best to "let the market tell you what to do, then react to it." This sort of reaction is positive. It involves reading and anticipating the market's potential price movement at pivotal levels, then responding to the initial phase of the move without bias for any particular direction. It's neither bearish nor bullish, and doesn't allow trader "denial" or team loyalty to blind us to market reality.

One common approach to filtering noise is to use technical indicators to analyze the markets. However, almost all technical indicators are based on historical price and volume data, so regardless of which ones we use, the very nature of these tools encourages most traders to be reactive instead of pro-active. While there is certainly a positive benefit derived from using indicators, we should be careful that they don't cause us to become too reactive when trading.

No matter what strategy you prefer to trade, consider using moving averages innovatively as part of your trading plan. Even though they do qualify as "lagging" indicators, they can be used in a number of ways to help us anticipate opportunity. Since moving averages have such a close relationship to price movement, future price will eventually come in contact with the moving average. Because this contact is inevitable, traders can project what price is likely to do at the point of contact.

Usually price backs away in the short term after contact with a selected moving average, and many times the moving average serves as a pivotal reversal point for longer-term reversals as well. On daily charts you can usually see relationships between price and the 13, 22, 50, and 100 bar exponential moving averages along with the 200 simple moving average.

The best way to find the optimum moving average for your preferred trading time frame is to put a number of different moving averages on the screen, and then find those with the most consistent price relationships. In other words, locate the moving averages that the stock price reacts to as support and resistance, and then use them for live trading.

Take note that just because price is approaching an important moving average level, a change in direction isn't automatic. It just means that buyers and sellers are likely to enter at these levels, which increases the odds of either a reversal, or accelerated price movement in the original direction if a turnaround doesn't occur.

Bottom Line: While this sort of moving average technical analysis isn't intended to be a complete strategy, it does provide a solid framework to help predetermine likely price action and gives us plenty of time for planning ahead. Just remember that using our tools to trade proactively allows us to anticipate and respond to likely market action instead of blindly reacting to it! 
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Best of luck and have a Great Week!
 
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