March 7, 2024 - The RightLine Report 

 
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                      NOTES FROM THE EDITOR
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Playing By The Rules

It's rarely a good idea to change your trading rules while you're in a trade. If you see or learn something that causes you to consider revising your methods, always exit the position under the old rules before implementing new ones.

Why? Because it prevents overreacting to every minor price move or some other distraction when you are emotionally wrapped up in the trade. It's extremely difficult to make intelligent trading decisions when you have money on the table, much less make smart rule revisions.

Also, waiting to finish the trade before making rule changes emphasizes the importance of having a "formal" set of trading procedures. Including a rule that regulates how and when you change your rules shows that you have respect for your rules. This sets you apart from most casual traders who don't follow a consistent approach and have no concept of the value of creating a procedure to monitor the effectiveness of their trading.

Some rules never change. For example "Use the Risk Control Calculator to determine position size" should always be on the list. On the other hand, "only go long in a bull market" or "only go short in a bear market" are rules that work well for many, but are too broad for traders who have learned to play brief counter-trends successfully.

Bottom Line: When I was a kid I wasn't particularly fond of rules. However when I began trading stocks I quickly learned that personal trading rules are very important. In fact, I still occasionally fall off the wagon - even though I usually regret it. While it's normal to take a few "shortcuts" every now and then, every successful trader I know is disciplined enough to follow his or her own rules near 100% of the time.

Following your rules is just another way of showing you have the self- respect to be a winner.

Trade well!

~ Thomas Sutton, Editor 

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                           "QUICK LIST"
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Stock     03/08     03/08      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

MARA      21.80     -0.82     23.24      20.8        2.44/1.22      4.76
LBPH      20.44      0.26     21.72     19.76        1.96/0.98       3.8
DNLI      20.53      0.01      21.1     19.68        1.42/0.71      1.72
AMRC      20.31      0.68     21.13     19.11        2.02/1.01       2.8
CRDO      22.52      0.72     23.05                  1.85/0.93      2.12


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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Stocks soared to new heights on Thursday in another substantial upward move. The S&P 500 marked yet another all-time high today in a widespread rally, with technology stocks leading the charge, particularly in the semiconductor sector. The Philly Semiconductor Index (SOX) surged by as much as 3.5% to surpass 5,175 points, marking a year-to-date gain of over 21%. This surge was propelled by leading companies like NVDA, a prominent player in AI growth.

Economic data indicated further strength in productivity, setting the stage for Fridday's eagerly anticipated Nonfarm Payrolls report for February. Expectations for the report include an estimate of around +200K new jobs added, compared to the prior month's impressive figure of +353K. Projections also suggest that Private Payrolls will increase by around 160K (previously +317K), with manufacturing Payrolls expected to rise by +10K. The unemployment rate is forecasted to remain steady at 3.7%.

Over the past few weeks, both positive and negative economic data have served as catalysts for upward movements in stocks, as markets continue to operate within a "Goldilocks" scenario. In this context, poor economic data could prompt the Fed to consider rate cuts sooner, while robust data reflects a strong economy and dispels recession fears. Most sectors in the S&P experienced gains, with notable increases of around 1% observed in Materials, Communications, and Technology, while Financials and REITS lagged behind.


                       Mar 6, 2024            Mar 7, 2024    
                  --------------------   --------------------
Dow                 38,622.32    37.13     38,791.35   130.30
Nasdaq              16,031.54    91.95     16,273.38   241.83
S&P 500              5,100.91    22.26      5,157.36    52.60

NYSE Volume                      4.57B                  4.14B
NYSE Advancers                   1,992                  2,005
NYSE Decliners                     826                    804

Nasdaq Volume                    5.52B                  5.08B
Nasdaq Advancers                 2,564                  2,584
Nasdaq Decliners                 1,684                  1,670

                                 New Highs/Lows

                   02/29  03/01  03/04  03/05  03/06  03/07
                 --------------------------------------------
NYSE New Highs       239    270    288    166    217    296
NYSE New Lows         23     25     36     37     31     20
Nasdaq New Highs     271    368    368    133    221    331
Nasdaq New Lows       80     87    115    114    116     90

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                              TRADER'S TIP:  
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TRADER'S TIP: "The Market Shows Its Hand"

Breakouts through key resistance levels, and breakdowns through key support levels both signal price moves that are likely to persist for some time. The power of trend is one of the strongest allies a trader can have, so make it your friend regardless of whether it is up or down. This means learning to play the market from both sides - buying when the trend is up, and selling short when the trend is down. Leave your Bull or Bear bias at the door and let the market tell you what IT wants to do! 
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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/ 
https://www.prorightline.com/rlch/030724SPX.jpg





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                             MARKET CALENDAR
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--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
MONDAY, MARCH 4					
12:00 pm	Philadelphia Fed President Tom Harker speaks
				
TUESDAY, MARCH 5					
10:00 am	Factory orders	
10:00 am	ISM services	
12:00 pm	Fed Vice Chair for Supervision Michael Barr speaks				
3:30 pm	Fed Vice Chair for Supervision Michael Barr speaks
				
WEDNESDAY, MARCH 6					
8:15 am	ADP employment	
10:00 am	Fed Chair Jerome Powell testifies to Congress				
10:00 am	U.S. wholesale inventories	
10:00 am	Job openings	
12:00 pm	San Francisco Fed President Mary Daly speaks				
2:00 pm	Federal Reserve Beige Book				
4:15 pm	Minneapolis Fed President Neel Kashkari speaks
				
THURSDAY, MARCH 7					
8:30 am	Initial jobless claims	
8:30 am	U.S. productivity (revision)	
8:30 am	U.S. trade balance	
9:40 am	Fed Chair Jerome Powell testifies to Congress				
11:30 am	Cleveland Fed President Loretta Mester speaks				
3:00 pm	Consumer credit	

FRIDAY, MARCH 8					
7:00 am	New York Fed President John Williams speaks				
8:30 am	U.S. nonfarm payrolls	
8:30 am	U.S. unemployment rate	
8:30 am	U.S. hourly wages	
8:30 am	Hourly wages year over year

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: "Margin Trading"

Always use extreme caution when trading on margin. The majority of traders who max out their margin limits wind up getting margin calls that result in big losses. Some brokers require margin be used to pay for half of every purchase of shares. If this is the case, be extremely careful that you always have enough cash on hand to offset any margined positions. 

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                      STOCKS COVERED IN THIS ISSUE    
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FINANCIAL SERVICES SECTOR

Marathon Digital Holdings, Inc. (MARA: Financial Services/Capital Markets) - SQUEEZE PLAY. MARA 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 23.24 and a SELL short trigger at 20.8. When one of the orders is filled, cancel the remaining order and enter a 2.44 trailing stop. When you've reached a 4.76 paper profit, tighten the stop to 1.22. MARA closed at 21.80 on Thursday. Earnings Report Date: May 08, 2024. Beta: 5.40. Market-Cap: 5.835B. Optionable.

HEALTHCARE SECTOR

Longboard Pharmaceuticals, Inc. (LBPH: Healthcare/Biotechnology) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in LBPH'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 21.72 and a SELL order at 19.76. Regardless of which order is triggered, cancel the other one and follow your entry with a 1.96 trailing stop. Tighten the stop to 0.98 once you have a 3.8 gain. LBPH closed Thursday at 20.44. Earnings Report Date: May 07, 2024. Beta: 1.29. Market-Cap: 722.701M. Optionable.

Denali Therapeutics Inc. (DNLI: 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. DNLI 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 21.1 and a SELL short trigger at 19.68. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.42 which can be tightened to 0.71 on a 1.72 gain. DNLI closed Thursday at 20.53. Earnings Report Date: May 06, 2024. Beta: 1.33. Market-Cap: 2.857B. Optionable.

INDUSTRIALS SECTOR

Ameresco, Inc. (AMRC: Industrials/Engineering & Construction) - SQUEEZE PLAY. Trader indecision has put AMRC 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 21.13 and a SELL short entry at 19.11. Now it's up to AMRC to show us which entry will be filled. Once the trade is underway place a 2.02 trailing stop, which can be tightened to 1.01 after you achieve a 2.8 profit. AMRC closed on Thursday at 20.31. Earnings Report Date: Apr 29, 2024. Beta: 1.54. Market-Cap: 1.062B. Optionable.

TECHNOLOGY SECTOR

Credo Technology Group Holding Ltd (CRDO: Technology/Communication Equipment) - BULLISH BOUNCE. Entering a position in the early stages of a bounce is great way to get on board an up-trending stock. The "Bullish Bounce" setup identifies probable candidates by evaluating the trading action that takes place near support levels. CRDO's behavior on Thursday could very well be a sign that a new bounce is underway. Place a BUY trigger at 23.05. In the event your trigger is met, also place a 1.85 trailing stop which can be trimmed down to 0.93 when you have a 2.12 profit. CRDO closed Thursday at 22.52. Earnings Report Date: May 29, 2024. Beta: 2.00. Market-Cap: 3.677B. 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  
---------------- -------     --------    -------     ------  -------   

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/ 
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Best of luck and have a Great Week!
 
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