May 5, 2022 - The RightLine Report ********************************** NOTES FROM THE EDITOR **********************************
The News That Moves
*********************************** "QUICK LIST" *********************************** Stock 05/05 05/05 Buy Short Trailing Stops Gain Symbol Price +/- Entry Entry Initial/Tighten Amount ------ -------- -------- -------- -------- --------------- -------- PJT 66.54 -0.69 67.73 4.31/2.16 3.26 SKYW 27.97 -0.80 28.97 26.89 2.08/1.04 2 FCUV 14.04 0.31 14.37 1.23/0.62 2.32 ALGM 25.76 -0.61 26.46 24.44 2.02/1.01 2.24 FARO 35.54 -1.27 37 33.83 3.17/1.59 3.5 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 fell hard on Thursday, wiping out Wednesday's gains following the Fed Bank's monetary policy decision and successive comments from Chairman Jerome Powell. The Central Bank raised its fed funds target rate by 50 basis points, and Powell dispelled speculation of more aggressive hikes in the days ahead. A light economic calendar showed initial jobless claims were above forecasts and preliminary nonfarm productivity for the first quarter fell sharply. In equities, eBay (EBAY $48) topped forecasts yet cut its guidance, and ConocoPhillips (COP $103) reported a near 4X surge in quarterly profits. Gold, the USD/dollar and oil moved higher, treasuries were lower, rasing yields. May 4, 2022 May 5, 2022 -------------------- -------------------- Dow 34,061.06 932.27 32,997.97 -1,063.09 Nasdaq 12,964.86 401.10 12,317.69 -647.16 S&P 500 4,300.17 124.69 4,146.87 -153.30 NYSE Volume 5.21B 5.08B NYSE Advancers 2,708 395 NYSE Decliners 613 2,933 Nasdaq Volume 5.53B 5.28B Nasdaq Advancers 3,424 780 Nasdaq Decliners 1,345 3,934 New Highs/Lows 04/28 04/29 05/02 05/03 05/04 05/05 -------------------------------------------- NYSE New Highs 22 24 13 27 53 53 NYSE New Lows 523 332 628 279 332 379 Nasdaq New Highs 43 35 28 37 40 21 Nasdaq New Lows 830 538 736 288 501 645 *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "What Is A Warrant?" A warrant is a certificate entitling the holder to buy a specific number of shares at a specific price, usually above the current market price at the time of issuance, for an extended period anywhere from a few years to forever. Corporations often bundle warrants with another class of security - such as preferred stock - to enhance the marketability of the other class. Warrants are like call options, but with much longer time spans - sometimes years. Warrants are offered by corporations, while exchange-traded call options are not issued by firms. If the price of the security rises to above that of the warrant's exercise price, then the investor can buy the security at the warrant's exercise price and resell it for a profit. Otherwise, the warrant will simply expire or remain unused. Warrants are listed on options exchanges and trade independently of the security with which it was issued. ************************** 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 - 4146.87 May 5, 2022 52-Week High: 4818.62 52-Week Low: 4056.88 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4492.19 Resistance 2: 4346.64 Resistance 1: 4239.28 Pivot: 4201.09 Support 1: 4093.73 Support 2: 4055.54 Support 3: 3909.99 https://www.prorightline.com/rlch/050522SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, May 02, 2022: 02-May 9:45 am 02-May 10 am ISM manufacturing index 02-May 10 am Construction spending Tuesday, May 03, 2022: 03-May 10 am Job openings 03-May 10 am Quits 03-May 10 am Factory orders 03-May Varies Motor vehicle sales (SAAR) Wednesday, May 04, 2022: 04-May 8:15 am ADP employment report 04-May 8:30 am International trade balance 04-May 9:45 am 04-May 10 am ISM services index 04-May 2 pm FOMC statement 04-May 2:30 pm Fed Chair Jerome Powell news conference Thursday, May 05, 2022: 05-May 8:30 am Initial jobless claims 05-May 8:30 am Continuing jobless claims 05-May 8:30 am Productivity (SAAR) 05-May 8:30 am Unit labor costs (SAAR) Friday, May 06, 2022: 06-May 8:30 am Nonfarm payrolls 06-May 8:30 am Unemployment rates 06-May 8:30 am Average hourly earnings 06-May 8:30 am Labor force participation rate, 25-54 06-May 3 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: "Feeling Lucky?" Whether we believe it or not, we ALL get lucky from time to time. Whenever a trade offers you a much bigger and faster profit than anticipated, lock it in! Windfalls do happen, so be ready to take gains on at least half of your position and then trail a very tight stop on the balance. *********************************** STOCKS COVERED IN THIS ISSUE *********************************** FINANCIAL SERVICES SECTOR PJT Partners Inc. (PJT: Financial Services/Capital Markets) - BULLISH BOUNCE. PJT's positive weekly uptrend is still intact despite recent selling that has driven share prices lower. Price action on Thursday 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 PJT back in step with the bullish weekly trend, so our BUY entry trigger is set at 67.73. Once you hold a position, trail a stop of 4.31. Tighten it to 2.16 on a 3.26 gain. PJT closed at 66.54 on Thursday. Earnings Report Date: Jul 27, 2022. Beta: 0.89. Market-Cap: 1.639B. Optionable. INDUSTRIALS SECTOR SkyWest, Inc. (SKYW: Industrials/Airlines) - 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. SKYW 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 28.97 and a SELL short trigger at 26.89. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 2.08 which can be tightened to 1.04 on a 2 gain. SKYW closed Thursday at 27.97. Earnings Report Date: Jul 27, 2022. Beta: 1.89. Market-Cap: 1.413B. Optionable. TECHNOLOGY SECTOR Focus Universal Inc. (FCUV: Technology/Scientific & Technical Instruments) - BULLISH BOUNCE. The charts for FCUV show that despite the downward pressure from sellers recently, the weekly uptrend is still going strong. Buyers showed up again on Thursday, resulting in the early stages of a rebound that started near moving average support. The resulting Bullish Bounce set-up offers a potential entry point for a long play. Set your trigger to BUY shares at 14.37, and follow your entry with a trailing stop of 1.23. Tighten it to 0.62 when a 2.32 profit is reached. FCUV ended the latest session at 14.04. Earnings Report Date: N/A. Beta: -0.43. Market-Cap: 607.366M. Optionable. Allegro MicroSystems, Inc. (ALGM: Technology/Semiconductors) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in ALGM'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 26.46 and a SELL order at 24.44. Regardless of which order is triggered, cancel the other one and follow your entry with a 2.02 trailing stop. Tighten the stop to 1.01 once you have a 2.24 gain. ALGM closed Thursday at 25.76. Earnings Report Date: May 10, 2022. Beta: N/A. Market-Cap: 4.892B. Optionable. FARO Technologies, Inc. (FARO: Technology/Scientific & Technical Instruments) - SQUEEZE PLAY. FARO 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 37 and a SELL short trigger at 33.83. When one of the orders is filled, cancel the remaining order and enter a 3.17 trailing stop. When you've reached a 3.5 paper profit, tighten the stop to 1.59. FARO closed at 35.54 on Thursday. Earnings Report Date: Jul 26, 2022. Beta: 1.40. Market-Cap: 649.01M. 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 ---------------- ------- -------- ------- ------ ------- ACM Research ACMR 3/4/2022 3/24/2022 3-for-1 Yes PAM Transport PTSI 3/9/2022 3/30/2022 2-for-1 Yes Amazon AMZN 3/9/2022 6/6/2022 20-for-1 Yes 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. 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