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May 30, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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I once saw a dangerous bit of advice posted on a sports wagering website ... "If you bet $100 on a game and lose, you double the next wager to $200, which recovers the previous loss and also gives you a profit, IF you win. If you lose, the doubling up process is put into play so that as often as you lose, when that win does occur, you're guaranteed to win back all prior bets, plus a profit on the amount of your first bet."
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"QUICK LIST"
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Stock 05/30 05/30 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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FL 26.03 -0.24 26.88 24.89 1.99/1 2.58
WSBC 24.46 0.01 24.85 23.27 1.58/0.79 2.58
CUBI 24.64 -0.04 25.26 23.07 2.19/1.1 3.14
PLRX 21.30 -0.20 22.24 20.5 1.74/0.87 3.04
PKST 23.35 -0.93 24.82 22.34 2.48/1.24 5.1
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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Following an initial surge of optimism, market enthusiasm waned on Tuesday, resulting in a lower finish for the S&P 500. The cause of this shift was news of a tentative agreement on the debt limit reached in Washington. With a relatively light calendar, investors remained focused on key factors shaping the overall market landscape. This includes moderating inflation, the Federal Reserve's future actions, and a slowing economy. Global equities and commodities displayed mixed performance, with gold prices edging higher and oil prices declining. Interest rates experienced a decrease, as the 10-year Treasury yield returned to approximately 3.7%. Within the market, the technology sector played a leading role during the holiday-shortened week, building on the previous week's rally that has resulted in a year-to-date increase of over 30% for tech stocks. May 29, 2023 May 30, 2023
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Dow Closed 0 33,042.78 -50.56
Nasdaq Closed 0 13,017.43 41.74
S&P 500 Closed 0 4,205.52 0.07
NYSE Volume 0 4.24B
NYSE Advancers 0 1,408
NYSE Decliners 0 1,574
Nasdaq Volume 0 4.86B
Nasdaq Advancers 0 2,015
Nasdaq Decliners 0 2,429
New Highs/Lows
05/23 05/24 05/25 05/26 05/29 05/30
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NYSE New Highs 26 17 33 47 0 51
NYSE New Lows 31 85 144 75 0 78
Nasdaq New Highs 91 42 72 124 0 128
Nasdaq New Lows 77 122 192 142 0 146
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TRADER'S TIP:
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TRADER'S TIP: "Let The Trade Come To You" It rarely pays to chase a stock, so don't chase it - let the trade come to you. You have two options when you realize a move is already underway. Either forget the trade and look for another one, or wait for the price to move back to support or resistance THEN enter on the rebound. Waiting for a pullback usually provides a relatively low risk entry - because you can place a tight stop just beyond the support or resistance level. Remember - don't worry if you miss a trade, there is always another. **************************
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 - 4205.52 May 30, 2023 52-Week High: 4325.28 52-Week Low: 3491.58 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4391.88 Resistance 2: 4282.99 Resistance 1: 4244.21 Pivot: 4174.09 Support 1: 4135.32 Support 2: 4065.20 Support 3: 3956.31 https://www.prorightline.com/rlch/053023SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, May 29, 2023: 29-May Memorial Day, all markets closed Tuesday, May 30, 2023: 30-May 9:00 am S&P Case-Shiller home price index (20 cities) 30-May 1:00 pm Richmond Fed President Tom Barkin speaks 30-May 10:00 am Consumer confidence Wednesday, May 31, 2023: 31-May 8:15 am ADP employment 31-May 9:45 am Chicago Business Barometer 31-May 10:00 am Job openings 31-May 12:30 pm Philadelphia Fed President Patrick Harker speaks 31-May 2:00 pm Federal Reserve Beige Book Thursday, June 01, 2023: 01-Jun 8:30 am Initial jobless claims 01-Jun 8:30 am Continuing jobless claims 01-Jun 8:30 am U.S. productivity 01-Jun 10:00 am ISM manufacturing 01-Jun 10:00 am Construction spending 01-Jun 1:00 pm Philadelphia Fed President Patrick Harker speaks Friday, June 02, 2023: 02-Jun 8:30 am U.S. employment report 02-Jun 8:30 am U.S. unemployment rate 02-Jun 8:30 am U.S. hourly wages 02-Jun 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: "Earnings: Holding Through or Getting Back In" It's no secret that we believe in avoiding undue risk. Because earnings reports often end up surprising traders, we often suggest closing out positions before the company announces earnings. However, if a stock is moving in a solid trend (long or short) and earnings estimates support that trend, experienced traders will often elect to drastically reduce the number of shares in their position and hold them through the earnings announcement. In some cases traders jump back into the trade after the company reports better than expected earnings. This can be profitable at times, but don't chase the stock. If it has jumped more than 5% beyond your exit point, you're probably better off waiting for price to pull back to a moving average support level. ***********************************
STOCKS COVERED IN THIS ISSUE
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CONSUMER CYCLICAL SECTOR Foot Locker, Inc. (FL: Consumer Cyclical/Apparel Retail) - SQUEEZE PLAY. Traders are feeling the pressure as FL'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 26.88 and a SELL short entry at 24.89. FL's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.99 trailing stop. Tighten it to 1 after you get a 2.58 gain. FL closed Tuesday at 26.03. Earnings Report Date: Aug 17, 2023. Beta: 1.21. Market-Cap: 2.432B. Optionable. FINANCIAL SERVICES SECTOR WesBanco, Inc. (WSBC: Financial Services/Banks-Regional) - SQUEEZE PLAY. Tuesday's trading session left WSBC 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 24.85 and your SELL short trigger at 23.27. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.58 trailing stop. Once you have a 2.58 profit, reduce the stop to 0.79. Earnings Report Date: Jul 24, 2023. Beta: 0.92. Market-Cap: 1.449B. Optionable. Customers Bancorp, Inc. (CUBI: Financial Services/Banks-Regional) - SQUEEZE PLAY. CUBI is stuck in a Bull/Bear deadlock. Fortunately for traders this impasse should be resolved soon, with one side or the other taking control. We want to be positioned for a potential quick move up or down, so get ready to catch this train with a BUY entry at 25.26 and a SELL short entry at 23.07. Once your trade is filled, enter a 2.19 trailing stop. Tighten it to 1.1 after a 3.14 gain. CUBI closed on Tuesday at 24.64. Earnings Report Date: Jul 25, 2023. Beta: 1.51. Market-Cap: 770M. Optionable. HEALTHCARE SECTOR Pliant Therapeutics, Inc. (PLRX: Healthcare/Biotechnology) - SQUEEZE PLAY. PLRX shareholders know what it feels like to be squeezed. Tuesday'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. PLRX closed Tuesday at 21.30. The plan is to enter in the right direction by placing a BUY trigger at 22.24 and a SELL short trigger at 20.5. Once PLRX establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.74. After you've collected a 3.04 profit, tighten the stop to 0.87. Earnings Report Date: Aug 07, 2023. Beta: 1.38. Market-Cap: 1.26B. Optionable. REAL ESTATE SECTOR Peakstone Realty Trust (PKST: Real Estate/REIT-Diversified) - SQUEEZE PLAY. The ticker for Tuesday's session shows PKST 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 24.82 and a SELL short trigger at 22.34. When PKST 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 2.48 trailing stop. Upon reaching a 5.1 profit, resize the stop to 1.24. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 840.761M. 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
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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/ ======================================================================
Best of luck and have a Great Week!
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