March 28, 2023 - The RightLine Report ********************************** NOTES FROM THE EDITOR **********************************
Greed, Fear and the VIX
*********************************** "QUICK LIST" *********************************** Stock 03/28 03/28 Buy Short Trailing Stops Gain Symbol Price +/- Entry Entry Initial/Tighten Amount ------ -------- -------- -------- -------- --------------- -------- CMCL 15.54 0.57 15.83 1.61/0.81 1.24 BBW 22.73 0.85 23.16 1.97/0.99 2.3 BLBD 20.34 0.23 20.8 19.4 1.4/0.7 2.18 BOOM 21.16 -0.08 21.89 20.37 1.52/0.76 3.02 SHLS 21.36 0.56 21.66 20.17 1.49/0.75 2.84 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/ ***************************** MARKET SUMMARY ***************************** The top US stock averages closed lower on Tuesday as the session focus shifted away from the distressed banking sector onto the financial weakness of companies. Now that big banks appear to have avoided a systemic meltdown thanks to government assistance on a couple of levels, other rate-sensitive aspects of the market are facing uncertainty. Tech sector equitites under selling pressure included Google parent Alphabet (GOOGL), Facebook parent Meta (META), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and computer chip-designer NVIDIA (NVDA). Oil prices and the yield on a 10-year treasury note were up slightly, gold and the USD/dollar closed near even. Mar 27, 2023 Mar 28, 2023 -------------------- -------------------- Dow 32,432.08 194.55 32,394.25 -37.83 Nasdaq 11,768.84 -55.12 11,716.08 -52.76 S&P 500 3,977.53 6.54 3,971.27 -6.26 NYSE Volume 4.25B 4.03B NYSE Advancers 2,235 1,792 NYSE Decliners 787 1,200 Nasdaq Volume 4.34B 4.06B Nasdaq Advancers 2,644 1,959 Nasdaq Decliners 1,845 2,505 New Highs/Lows 03/21 03/22 03/23 03/24 03/27 03/28 -------------------------------------------- NYSE New Highs 25 28 31 23 34 27 NYSE New Lows 44 102 212 260 34 50 Nasdaq New Highs 60 49 57 42 63 43 Nasdaq New Lows 127 190 314 333 147 147 *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "Consistent Profits Are No Accident" Successful trading doesn't just happen by chance. It requires an open mind, willingness to learn, discipline, skillful execution, and the ability to forgive self inflicted damage. As with all things of quality, it is the "wise choice of many alternatives." ************************** THE TECHNICAL ANALYST ************************** 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 - 3971.27 March 28, 2023 52-Week High: 4637.30 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4233.87 Resistance 2: 4103.54 Resistance 1: 4037.26 Pivot: 3973.21 Support 1: 3906.93 Support 2: 3842.88 Support 3: 3712.55 https://www.prorightline.com/rlch/032823SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, MARCH 27 5:00 pm Fed Gov. Jefferson speaks TUESDAY, MARCH 28 8:30 am Advanced U.S. trade balance in goods 8:30 am Advanced retail inventories Feb. 8:30 am Advanced wholesale inventories 9:00 am S&P Case-Shiller home price index (20 cities) 9:00 am FHFA home price index 10:00 am U.S. consumer confidence 10:00 am Fed Gov. Barr testifies to Senate on banks WEDNESDAY, MARCH 29 10:00 am Pending U.S. home sales 10:00 am Fed Gov. Barr testifies to House on banks THURSDAY, MARCH 30 8:30 am GDP (2nd revision) 8:30 am Initial jobless claims 8:30 am Continuing jobless claims 12:45 pm Boston Fed President Collins speaks FRIDAY, MARCH 31 8:30 am Personal income (nominal) 8:30 am Personal spending (nominal) 8:30 am PCE index] 8:30 am Core PCE index 8:30 am PCE (year-over-year) 8:30 am Core PCE (year-over-year) 9:45 am Chicago Business Barometer 10:00 am Consumer sentiment (final) 10:00 pm Fed Gov. Waller speaks 3:05 pm New York Fed President Williams speaks 5:45 pm Fed Gov. Cook speaks 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/ *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "A Mythological Metaphor" Just as Odysseus in ancient Greek mythology bound himself to the ship's mast to prevent the wail of Sirens from luring the seafarer on to dangerous rocks, traders can find safety and prosperity by securing themselves with a few important standards. 1) Don't let the crowd determine your perspective. Although many investors indulge in false group security by mimicking everyone else, successful traders listen to others but think for themselves. Instead of marching with lemmings, stay focused on locating opportunity - there's plenty of it. 2) Avoid overtrading. There are two ways to over trade - trading too often, or taking on positions that are too large. To prevent the latter, always calculate the appropriate number of shares for your personal account size. And for the former, remember there's no reason to trade in a frenzy. Instead of grabbing every setup that comes along, concentrate on each trade you make. Thoughtfully pace yourself by taking on smaller trades to stay in tune, and then load up the wagons when the time is right. 3) Cut your losses and let your winners run. This means setting stops and executing them as planned. Don't dwell on the losers, just learn and go on. Manage your winners intelligently - give them enough room to grow, but don't neglect them and let profits disappear. 4) Even though trading is supposed to be serious business, the best traders know how to laugh - especially at themselves! Relax, and give yourself regular fun breaks to clear your head. You deserve it. 5) Thinking like a winner makes you a winner. The sum of our thoughts has an interesting way of showing up in our lives. Think of yourself as successful, and you are likely to be a success. *********************************** STOCKS COVERED IN THIS ISSUE *********************************** BASIC MATERIALS SECTOR Caledonia Mining Corporation Plc (CMCL: Basic Materials/Gold) - BULLISH BOUNCE. Positive price behavior near moving average support on Tuesday qualifies CMCL for a Bullish Bounce setup. After several sessions of declining prices, CMCL should soon begin trading in step with its established weekly uptrend. Tell your broker to BUY shares if CMCL moves up to our entry trigger set at 15.83. You can also enter a 1.61 trailing stop, to be replaced with a 0.81 trailing stop when you obtain a 1.24 profit. CMCL closed Tuesday at 15.54. Earnings Report Date: N/A. Beta: 0.77. Market-Cap: 268.582M. Optionable. CONSUMER CYCLICAL SECTOR Build-A-Bear Workshop, Inc. (BBW: Consumer Cyclical/Specialty Retail) - BULLISH BOUNCE. BBW's positive weekly uptrend is still intact despite recent selling that has driven share prices lower. Price action on Tuesday shows that traders are aware of the moving average support zone now in play, and they are ready to consider buying again. A shift up from this point will attract even more buyers. The new buying should move BBW back in step with the bullish weekly trend, so our BUY entry trigger is set at 23.16. Once you hold a position, trail a stop of 1.97. Tighten it to 0.99 on a 2.3 gain. BBW closed at 22.73 on Tuesday. Earnings Report Date: May 23, 2023. Beta: 1.91. Market-Cap: 335.277M. Optionable. Blue Bird Corporation (BLBD: Consumer Cyclical/Auto Manufacturers) - SQUEEZE PLAY. Traders are feeling the pressure as BLBD's intra-day price range on Tuesday shrunk to the narrowest spread in over a week. The tension between buyers and sellers should provide enough pent-up engergy for a breakout move in the days ahead, so get ready to trade with the new trend. To achieve that, place a BUY entry at 20.8 and a SELL short entry at 19.4. BLBD's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.4 trailing stop. Tighten it to 0.7 after you get a 2.18 gain. BLBD closed Tuesday at 20.34. Earnings Report Date: May 10, 2023. Beta: 1.36. Market-Cap: 651.533M. Optionable. ENERGY SECTOR DMC Global Inc. (BOOM: Energy/Oil & Gas Equipment & Services) - SQUEEZE PLAY. Tuesday's narrow price range has created a potentially profitable setup in BOOM, as sellers and buyers find themselves in a near tie for control of price direction. The next short-term trend could go either way, so prepare for a move out of the draw within the next day or so. Set a BUY entry at 21.89 and a SELL short entry at 20.37. Let BOOM's price action determine your long or short entry. Once the order is filled, place a 1.52 trailing stop, and tighten it to 0.76 upon getting a 3.02 gain. BOOM closed Tuesday at 21.16. Earnings Report Date: May 03, 2023. Beta: 1.61. Market-Cap: 417.235M. Optionable. TECHNOLOGY SECTOR Shoals Technologies Group, Inc. (SHLS: Technology/Solar) - SQUEEZE PLAY. A look at SHLS'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 21.66 and a SELL short trigger at 20.17. Once SHLS shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.49 and tighten to 0.75 on a 2.84 gain. SHLS closed Tuesday at 21.36. Earnings Report Date: May 15, 2023. Beta: 2.16. Market-Cap: 3.625B. 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 *********************************** 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 ---------------- ------- -------- ------- ------ ------- 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. 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! ********** If you prefer to receive this report in html with color and graphics, or have any questions, send us an email using our contact form at:https://prorightline.com/index.php/contact-us/ ====================================================================== DISCLAIMER The RightLine Report is an information service for investors and traders. 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