|
May 2, 2023 - The RightLine Report
**********************************
NOTES FROM THE EDITOR
**********************************
As with any other endeavor in life, trading has its own vibrant community of people who are interested in learning, sharing, and improving their craft. Going it alone, sitting at your computer, it's easy to overlook this fact.
***********************************
"QUICK LIST"
***********************************
Stock 05/02 05/02 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
JAKK 22.97 0.25 23.38 21.82 1.56/0.78 2.02
IMKTA 92.54 0.06 93.96 5.28/2.64 3.46
RVMD 23.35 -0.50 24.29 22.44 1.85/0.93 2.18
TCX 22.11 0.50 22.63 2.45/1.23 2.5
MAXN 26.10 -0.82 27.33 24.98 2.35/1.18 3.46
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 US stock market was lower on Tuesday ahead of a key Fed Bank interest rate decision on Wednesday, as renewed weakness in regional banks triggered bearish sentiment. Shares of Western Alliance were down 15% and PacWest dropped 27% with the rescue of First Republic Bank over the weekend failing to ease financial stability worries. The financial and energy sectors led the losses, while the growth areas of the market were lifted by the drop in bond yields. Along with the ongoing bank troubles, concern over congressional debt-ceiling discussions also helped bonds rally and reinforced the idea that rates will soon peak. May 1, 2023 May 2, 2023
-------------------- --------------------
Dow 34,051.70 -46.46 33,684.53 -367.17
Nasdaq 12,212.60 -13.99 12,080.51 -132.09
S&P 500 4,167.87 -1.61 4,119.58 -48.29
NYSE Volume 3.33B 4.49B
NYSE Advancers 1,212 603
NYSE Decliners 1,777 2,399
Nasdaq Volume 5.18B 5.51B
Nasdaq Advancers 2,044 1,281
Nasdaq Decliners 2,392 3,129
New Highs/Lows
04/25 04/26 04/27 04/28 05/01 05/02
--------------------------------------------
NYSE New Highs 43 31 37 72 83 41
NYSE New Lows 103 101 55 37 35 152
Nasdaq New Highs 39 51 53 71 103 62
Nasdaq New Lows 385 408 219 153 198 443
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Free Advice From TV Talking Heads" When it comes to financial advice, always remember that the brokerage firms who pay the advisors make most of their money from commissions on stock sales. It may only be a few bucks for each transaction, but it adds up to hundreds of billions of dollars. Though many analysts are well intended, a major purpose of their stock picks is to attract customers and generate order flow. Whether the recommendations are profitable or not really isn't that important - the companies make money whenever someone buys or sells shares. **************************
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 - 4119.58 May 2, 2023 52-Week High: 4325.28 52-Week Low: 3491.58 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4371.05 Resistance 2: 4250.34 Resistance 1: 4209.91 Pivot: 4129.63 Support 1: 4089.20 Support 2: 4008.92 Support 3: 3888.21 https://www.prorightline.com/rlch/050223SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, May 01, 2023: 01-May MONDAY, MAY 1 01-May 10:00 am ISM manufacturing 01-May 10:00 am Construction spending 01-May TUESDAY, MAY 2 Tuesday, May 02, 2023: 02-May 10:00 am U.S. job openings 02-May 10:00 am Factory orders 02-May WEDNESDAY, MAY 3 Wednesday, May 03, 2023: 03-May 8:15 am ADP employment 03-May 10:00 am ISM services 03-May 2:00 pm Federal Reserve interest-rate statement 03-May 2:30 pm Fed Chair Powell press conference 03-May THURSDAY, MAY 4 Thursday, May 04, 2023: 04-May 8:30 am U.S. productivity 04-May 8:30 am U.S. trade deficit 04-May 8:30 am Initial jobless claims 04-May 8:30 am Continuing jobless claims 04-May FRIDAY, MAY 5 Friday, May 05, 2023: 05-May 8:30 am U.S. employment report 05-May 8:30 am U.S. unemployment rate 05-May 8:30 am U.S. hourly wages 05-May 8:30 am Hourly wages year over year 05-May 3:00 pm Consumer credit 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: "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. ***********************************
STOCKS COVERED IN THIS ISSUE
***********************************
CONSUMER CYCLICAL SECTOR JAKKS Pacific, Inc. (JAKK: Consumer Cyclical/Leisure) - SQUEEZE PLAY. Traders are feeling the pressure as JAKK'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 23.38 and a SELL short entry at 21.82. JAKK's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.56 trailing stop. Tighten it to 0.78 after you get a 2.02 gain. JAKK closed Tuesday at 22.97. Earnings Report Date: Jul 25, 2023. Beta: 2.17. Market-Cap: 226.735M. Optionable. CONSUMER DEFENSIVE SECTOR Ingles Markets, Incorporated (IMKTA: Consumer Defensive/Grocery Stores) - 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. IMKTA's behavior on Tuesday could very well be a sign that a new bounce is underway. Place a BUY trigger at 93.96. In the event your trigger is met, also place a 5.28 trailing stop which can be trimmed down to 2.64 when you have a 3.46 profit. IMKTA closed Tuesday at 92.54. Earnings Report Date: May 03, 2023. Beta: 0.65. Market-Cap: 1.758B. Optionable. HEALTHCARE SECTOR Revolution Medicines, Inc. (RVMD: Healthcare/Biotechnology) - SQUEEZE PLAY. Tuesday's narrow price range has created a potentially profitable setup in RVMD, 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 24.29 and a SELL short entry at 22.44. Let RVMD's price action determine your long or short entry. Once the order is filled, place a 1.85 trailing stop, and tighten it to 0.93 upon getting a 2.18 gain. RVMD closed Tuesday at 23.35. Earnings Report Date: May 08, 2023. Beta: 1.45. Market-Cap: 2.482B. Optionable. TECHNOLOGY SECTOR Tucows Inc. (TCX: Technology/Software-Infrastructure) - BULLISH BOUNCE. Some people hear of a stock that's performing nicely and then buy it without any regard for timing the entry. This approach usually leaves money on the table, money that could just as well be added to profits. The Bullish Bounce setup provides a well timed entry and reduces exposure to risk by placing both the entry trigger and exit stop near the bottom of the bounce. We have an opportunity to use this approach with TCX which met our setup criteria on Tuesday. The BUY trigger for this trade is at 22.63, and the trailing stop is sized at 2.45. Resize the stop to 1.23 upon collecting a 2.5 point gain. TCX closed Tuesday at 22.11. Earnings Report Date: May 08, 2023. Beta: 0.82. Market-Cap: 239.445M. Optionable. Maxeon Solar Technologies, Ltd. (MAXN: Technology/Solar) - SQUEEZE PLAY. A look at MAXN'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 27.33 and a SELL short trigger at 24.98. Once MAXN shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 2.35 and tighten to 1.18 on a 3.46 gain. MAXN closed Tuesday at 26.10. Earnings Report Date: May 16, 2023. Beta: 1.52. Market-Cap: 1.176B. 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. |