May 18, 2023 - The RightLine Report 

 
               **********************************
                      NOTES FROM THE EDITOR
               **********************************

Here are four simple guidelines you can benefit from regardless of the time frame you choose to trade and invest in.

1) Be sure of your time horizon.

Most people buy stocks without first considering how long they will own them. Are your plans short-term or long-term? It makes a big difference. Although history shows that the market generally goes up in the long run, it doesn't reveal what's just ahead.

2) Don't rely solely on the clock or calendar.

While this may sound odd at first, choosing our time horizon has as much to do with price movement as it does clock or calendar time. A trader who specializes in trading 15-minute bars has an idea of how much the price should move within that "time" frame. The actual amount of time in a "normal" trade of this type can be anywhere from 15-minutes to several hours, or on some occasions even a few days.

However, an experienced trader would never expect this type of trade to go on for weeks or months. He or she is always aware of the normal price movement that can be expected during the average trade time period, and doesn't plan on being in the trade indefinitely.

The same reasoning holds true for any chosen time frame, whether we are trading one-minute bars or monthly charts. Profit is the only part of the trading clock with cash value, so when making trade management decisions always consider your earnings too.

3) Get Control of the Risk Factor.

No matter how well we trade, sometimes we're going to be wrong. Despite all of the hype to the contrary, most successful traders win only about half of their trades. Using intelligent risk management tactics insures that losses won't hurt us.

4) Use Your Emotional Intelligence.

We've got to play the hand we're dealt, even when we don't like it. The stock market is much bigger than any one of us. We have no control over what it does, but we do have complete control over how we respond to it. Getting angry when the market goes down doesn't make it go back up, but the emotional stress of anger has the potential to cloud our judgment.

Trade well!

- Thomas Sutton, Editor 

                ***********************************
                           "QUICK LIST"
                ***********************************

Stock     05/18     05/18      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

CERE      31.96      0.27      32.5                  2.54/1.27       3.8
EGRX      20.50      0.35     20.93     19.51        1.42/0.71      1.74
IDYA      21.19      0.03     21.68     20.21        1.47/0.74       1.7
KDNY      21.38     -0.13     21.72     20.22         1.5/0.75      2.26
GFL       37.28     -0.09     37.86                  3.11/1.56      1.68


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
                   *****************************

US stocks rallied on Thursday as traders digested the latest earnings announcements while keeping an eye on the unfolding debt-ceiling negotiations. Hopes of progress on the debt limit offset comments from the Dallas Fed president suggesting that it could be premature for the Fed to end its interest rate hikes. There were a couple of bright spots on the economic front, with initial jobless claims better than expectations and meaningful improvement in the May reading for the Philadelphia Fed manufacturing index. In equities, Walmart topped quarterly earnings expectations for the quarter, syncing with upbeat quarterly reports from Home Depot and Target earlier this week. Apparently consumers are still in good financial shape, which should help soften the slowdown in the overall economy as we head towards summer.


                       May 17, 2023           May 18, 2023   
                  --------------------   --------------------
Dow                 33,420.77   408.63     33,535.91   115.14
Nasdaq              12,500.57   157.51     12,688.84   188.27
S&P 500              4,158.77    48.87      4,198.05    39.28

NYSE Volume                      4.05B                  3.99B
NYSE Advancers                   2,311                  1,738
NYSE Decliners                     675                  1,203

Nasdaq Volume                    4.51B                  4.54B
Nasdaq Advancers                 3,163                  2,359
Nasdaq Decliners                 1,282                  2,043

                                 New Highs/Lows

                   05/11  05/12  05/15  05/16  05/17  05/18
                 --------------------------------------------
NYSE New Highs        35     50     43     36     56     82
NYSE New Lows         86    118     58    107     80     45
Nasdaq New Highs      81     71     77     69     85    115
Nasdaq New Lows      219    250    160    199    144    104

                   *********************************** 
                              TRADER'S TIP:  
                   ***********************************

TRADER'S TIP: "Remember This . . ."

One brief but very important rule - never let a short-term loser turn into a long-term investment. It's usually a losing game. 
                      **************************
                         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 - 4198.05 May 18, 2023

52-Week High: 4325.28
52-Week Low: 3491.58
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 4236.47
Resistance 2: 4181.12
Resistance 1: 4152.60
Pivot: 4125.76
Support 1: 4097.24
Support 2: 4070.40
Support 3: 4015.04
https://www.prorightline.com/rlch/051823SPX.jpg

NASDAQ Composite - 12688.84 May 18, 2023

52-Week High: 13181.09
52-Week Low: 10088.83
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 12655.66
Resistance 2: 12465.07
Resistance 1: 12374.90
Pivot: 12274.48
Support 1: 12184.31
Support 2: 12083.89
Support 3: 11893.30


Dow Industrials - 33535.91 May 18, 2023

52-Week High: 34712.28
52-Week Low: 28660.94
Daily Trend: UP
Weekly trend: UP
Weekly Pivot Levels
Resistance 3: 34717.39
Resistance 2: 34055.92
Resistance 1: 33678.27
Pivot: 33394.44
Support 1: 33016.79
Support 2: 32732.96
Support 3: 32071.48


                       **************************
                             MARKET CALENDAR
                       **************************
--ECONOMIC REPORTS AND EVENTS (all times are Eastern): 
Thursday, May 18, 2023:
18-May  8:30 am   Philadelphia Fed manufacturing survey
18-May  8:30 am   Initial jobless claims
18-May  8:30 am   Continuing jobless claims
18-May  10:00 am   Existing home sales
18-May  10:00 am   U.S. leading economic indicators

Friday, May 19, 2023:
19-May          None scheduled

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: "What is Money Management?"

In essence, Money Management is the part of your trading method that you use to decide how many shares to hold in a position. Money Management and Position Sizing are essentially the same thing. 

                   ***********************************
                      STOCKS COVERED IN THIS ISSUE    
                   ***********************************

HEALTHCARE SECTOR

Cerevel Therapeutics Holdings, Inc. (CERE: Healthcare/Biotechnology) - BULLISH BOUNCE. Positive price behavior near moving average support on Thursday qualifies CERE for a Bullish Bounce setup. After several sessions of declining prices, CERE should soon begin trading in step with its established weekly uptrend. Tell your broker to BUY shares if CERE moves up to our entry trigger set at 32.5. You can also enter a 2.54 trailing stop, to be replaced with a 1.27 trailing stop when you obtain a 3.8 profit. CERE closed Thursday at 31.96. Earnings Report Date: Jul 31, 2023. Beta: 1.48. Market-Cap: 5.012B. Optionable.

Eagle Pharmaceuticals, Inc. (EGRX: Healthcare/Drug Manufacturers-Specialty & Generic) - SQUEEZE PLAY. EGRX 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. EGRX closed Thursday at 20.50. The plan is to enter in the right direction by placing a BUY trigger at 20.93 and a SELL short trigger at 19.51. Once EGRX establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.42. After you've collected a 1.74 profit, tighten the stop to 0.71. Earnings Report Date: Aug 07, 2023. Beta: 0.91. Market-Cap: 268.372M. Optionable.

IDEAYA Biosciences, Inc. (IDYA: Healthcare/Biotechnology) - SQUEEZE PLAY. The ticker for Thursday's session shows IDYA is now stuck in a tight price band. With the cyclical contraction and expansion nature of volatility in force, we should see a new period of price expansion in the days ahead. To improve the odds of catching the next directional wave, place a BUY trigger at 21.68 and a SELL short trigger at 20.21. When IDYA starts moving out of its narrow range, your order will be triggered. Once you're in the trade, cancel the opposing trigger and set a 1.47 trailing stop. Upon reaching a 1.7 profit, resize the stop to 0.74. Earnings Report Date: Aug 14, 2023. Beta: 0.85. Market-Cap: 1.214B. Optionable.

Chinook Therapeutics, Inc. (KDNY: Healthcare/Biotechnology) - SQUEEZE PLAY. Thursday's trading session left KDNY in a very narrow price range after buyers and sellers fought to a near stalemate. Both sides are looking for some traction, and a breakout either way could provide a nice gain in the short term. To get aboard, set your BUY trigger at 21.72 and your SELL short trigger at 20.22. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.5 trailing stop. Once you have a 2.26 profit, reduce the stop to 0.75. Earnings Report Date: Aug 07, 2023. Beta: N/A. Market-Cap: 1.43B. Optionable.

INDUSTRIALS SECTOR

GFL Environmental Inc. (GFL: Industrials/Waste Management) - BULLISH BOUNCE. Another bullish bouncer, GFL appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Thursday's positive price action near Moving Average support says it's time to BUY shares if GFL reaches our entry trigger set at 37.86. Also place a 3.11 trailing stop which can be narrowed to 1.56 when you reach a 1.68 profit. GFL closed Thursday at 37.28. Earnings Report Date: Jul 25, 2023. Beta: 1.34. Market-Cap: 13.762B. 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. It is not a solicitation nor a recommendation or offer to buy or sell securities. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. The publishers of The RightLine Report are not brokers or financial advisors, and are not acting in any way to influence the purchase or sale of any security. Stock picks, entry points and exit points should be considered an information resource to assist the trader in developing a trading plan and it is the sole responsibility of the reader to conduct his or her own due diligence before executing a trade. Trading securities should be considered speculative with a high degree of volatility and risk.

The publishers of The RightLine Report recommend that anyone trading securities should do so with caution, exercise prudent trading discipline and have a personal risk management strategy in place before doing so. It is possible at this or some subsequent date, the publishers and staff of The Pro Right Line Corp. may own, buy or sell securities presented. The Pro Right Line Corp. is not a financial advisory service. Its publishers, owners or investors, are not liable for any losses or damages, monetary or otherwise, that result from the content of The RightLine Report. Past RightLine Report performance may not be indicative of future performance.

All subscriptions and/or use of the RightLine.net website are subject to RightLine's "Terms of Use" and "Subscriber Terms & Conditions" which are posted at www.rightline.net.

Any REDISTRIBUTION of the above information, without The RightLine's written consent, is STRICTLY PROHIBITED.

Copyright / The Pro Right Line Corporation - All Rights Reserved


To Unsubscribe, send an email to cs@prorightline.com or call 1-312-248-4241.