Notes From The Editor

Here is a brief look at what I believe it takes to succeed in this business. Those of you with years of experience probably already know much of this. Anyone who is just getting started can use these guidelines to jumpstart their trading career in the right direction. I hope you find it helpful.

- Thomas

"Top Ten Tips for Successful Online Stock Trading"

1) Choose Your Trading Style Carefully. Give plenty of thought to what kind of online stock trading you want to do. Would you prefer day trading, where you close out every trade at the end of each day? How about short-term trading where you are in a position several days at a time? Maybe you'd rather be a weekly trader or monthly trader. Though you can always change your mind, it's wise to have a clear idea of the style of stock trading you prefer BEFORE you start.

2) Match Your Trading Style To Your Lifestyle. Your choice of trading style is especially important from a lifestyle perspective. Day trading usually means you will be at your computer for hours at a time. Longer term online stock trading doesn't require as much attention. As a rule, the shorter the time frame the more intense the trading.

3) Select A Broker That Matches Your Trading Style. The type of online stock trading you choose to do will determine the type of broker to use. Day traders need high-speed direct access technology. Short-term daily, weekly, and monthly traders can use less sophisticated discount brokers. When it comes to broker fees and other costs, day trading is the most expensive.

4) Use A Low-Risk High-Reward Trading Method. Stock trading involves risk. Most people inflict serious damage to their trading account before they learn how to win consistently. Though it may not seem glamorous, risk management is essential for successful online stock trading. The only way to get the reward is to control the risk.

5) Make Sure Your Trading Method Works in All Markets. The stock market doesn't just go up. It goes down too, sometimes for months or years. Use an online stock trading method that takes advantage of both down-markets and up-markets.

6) Trade The Best Stocks. Superior stock selection takes advanced skills and extensive research. Unless you are extremely skilled with lots of spare time, it's usually best to seek the advice of a professional. Avoid big brokerage firms and mutual funds. Facts show that most of their trading "experts" end up losing money.

7) Know When To Sell Your Stocks. Everyone focuses on what and when to buy stock, yet few ever consider the best time to sell. Paper profits only become real money when you convert them to cash. Don't let your stock gains disappear due to neglect. Plan ahead. Before you get in, always know the specific conditions that will signal when it's time to get out.

8) Check Your Winning Edge. A "winning edge" consists of the favorable factors that set winners apart from losers. You must have a reliable advantage to consistently make money trading online. Ask yourself - "What factors give me an edge?" Be specific. If you aren't sure, you probably don't have an edge. The only way to know is to analyze your methods and measure your results.

9) Invest in a good online stock trading education. Surveys show that 9 out of 10 investors believe their chances of winning are "above average" yet more than 80% of them actually lose money. This is simply because they don't have the specific information needed to win. As we say at RightLine, "If you think education is expensive, try ignorance."

10) Associate With Successful Online Stock Traders. Online stock trading presents unique challenges. Unlike traditional stock trading, there is no live broker to help you along the way. If chosen carefully, experienced online traders can be among your best trading resources. You may even wind up with a good friend!

Quick List

    
Stock     05/07     05/07      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

RILY      31.82      1.80     32.69                  3.52/1.76     2.67
MARA      20.21     -0.46     20.95      19.1        1.85/0.93     2.02  
ATRC      21.87     -0.23      22.4     20.89        1.51/0.76     1.87
PHR       22.60     -0.08     23.25     21.79        1.46/0.73     1.67

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" and always use the RightLine Risk Control Calculator before entering any position.

For more on controlling risk go to the RightLine Risk Control System

For a glossary of terms unique to The RightLine Report go to: Glossary

Questions? Send us an email using our Contact Form.

Market Summary

Equity markets ended mostly higher on Tuesday, marking the fourth consecutive day of gains for the S&P 500. Across sectors, the S&P 500 saw broad-based improvements, with notable boosts from real estate and utilities, both surging over 1%. Overseas, Asian markets showed mixed results overnight, while European markets closed mostly higher in response to upbeat retail sales data from the eurozone. Treasury yields continued their downward trend, with the 10-year yield slipping to approximately 4.45%. This decline represents a notable retreat from its recent peak of 4.7%, following last Friday's disappointing jobs report and indications from Fed officials suggesting that further rate hikes are improbable.

2023 witnessed a trend of narrow leadership, primarily driven by the outstanding performance of a few mega-cap technology stocks, propelling the S&P 500 to a 26% gain. Sectors like technology, communication services, and consumer discretionary each yielded over 40% returns, while no other sector exceeded an 18% return. However, the last three months have seen a shift towards broader leadership, with cyclical and defensive sectors exhibiting strong performance alongside last year's frontrunners.

Utilities, which saw a 7% decline in 2023, marked the lowest return among all S&P 500 sectors but emerged as the top-performer since early February, soaring nearly 15%. Additionally, cyclical sectors such as energy, materials, and industrials have demonstrated robust performance, each recording gains of 7% or more. This suggests that market leadership may continue to diversify, with previously lagging sectors catching up.

                        May 6, 2024            May 7, 2024    
                  --------------------   --------------------
Dow                  38852.27   176.59      38884.26    31.99
Nasdaq               16349.25   192.92      16332.56   -16.69
S&P 500               5180.74    52.95       5187.70     6.96

NYSE Volume                      3.68B                  3.98B
NYSE Advancers                   2,181                  1,584
NYSE Decliners                     638                  1,232

Nasdaq Volume                    4.46B                  5.04B
Nasdaq Advancers                 2,664                  2,036
Nasdaq Decliners                 1,541                  2,151

                                 New Highs/Lows

                   04/30  05/01  05/02  05/03  05/06  05/07
                 --------------------------------------------
NYSE New Highs        64     56     80    123    169     75
NYSE New Lows         36     36     26     18     19    212
Nasdaq New Highs      56     63     81    131    153    159
Nasdaq New Lows      123    113    101     79     54     70
   

TRADER'S TIP: "Prevent Overtrading - Be Selective"

Traders will sometimes say to themselves - "Here I am with money in my trading account, so I'm going to trade SOMETHING today!" Unfortunately what they do next usually qualifies as "over trading." Remember that patience is a major key to success in this business, so always be selective about the trades you take.

The Technical Analyst

For help with this chart, be sure to read "Understanding The Importance Of Support And Resistance"
and "Improve Your Trading With Moving Averages".

Market Calendar

ECONOMIC REPORTS AND EVENTS (all times are Eastern):    

MONDAY, May 6					
12:50 pm	Richmond Fed President Tom Barkin speaks				
1:00 pm	New York Fed President Williams speaks
				
TUESDAY, MAY 7					
11:30 am	Minneapolis Fed President Kashkari speaks				
3:00 pm	Consumer credit	

WEDNESDAY, MAY 8					
10:00 am	Wholesale inventories	
11:00 am	Fed Vice Chair Philip Jefferson speaks				
11:45 am	Boston Fed President Susan Collins speaks				
1:30 pm	Fed Gov. Cook speaks	
			
THURSDAY, MAY 9					
8:30 am	Initial jobless claims	
2:00 pm	San Francisco Fed President Mary Daly speaks
				
FRIDAY, MAY 10					
9:00 am	Fed Governor Michelle Bowman speaks				
10:00 am	Consumer sentiment (prelim)	
12:45 pm	Chicago Fed President Austan Goolsbee speaks				
1:30 pm	Fed Vice Chair for Supervision Michael Barr speaks				
2:00 pm	Monthly U.S. federal budget

For a chart of typical Up or Down market reactions to specific major US economic reports 
go to:  Economic Indicator Effects

TRADER'S TIP: "Earnings Conference Calls"

Since the SEC implemented the Fair Disclosure laws, most companies have begun allowing individual shareholders to listen in on earnings conference calls that were previously limited to analysts only. If you are tracking a stock as it approaches its scheduled earnings announcement, always look for the related conference call and mark it on your calendar.

The behavior of the stock during the call can telegraph early reaction to management's explanation of earnings related events. If you can't find any mention of the call, give the firm's Investor Relations department a ring and ask when or if a call will be held.

Stocks Covered in This Issue

B. Riley Financial, Inc. (RILY) - BULLISH BOUNCE. Up-trending stocks like RILY have a tendency to bounce their way skyward rather than travel higher in a straight line. After touching down to a moving average support level on Tuesday, RILY is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 32.69 if positive price action occurs. As always, follow your entry with a trailing stop. A 3.52 trailer should work well with RILY. Tighten it to 1.76 on a 2.67 gainer. Earnings Report Date: Aug 7, 2024. Beta: 1.54. Market-Cap: 959.147M. Not Optionable.

Marathon Digital Holdings, Inc. (MARA) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in MARA's narrowest trading range of the past seven sessions. With neither group able to take complete control on Tuesday, 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 20.95 and a SELL order at 19.1. Regardless of which order is triggered, cancel the other one and follow your entry with a 1.85 trailing stop. Tighten the stop to 0.93 once you have a 2.02 gain. MARA closed Tuesday at 20.21. Earnings Report Date: May 9, 2024. Beta: 5.35. Market-Cap: 5.516B. Not Optionable.

AtriCure, Inc. (ATRC) - 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. ATRC traders reached this state of stand-off on Tuesday with the tightest range of the past seven days. You can take advantage of their efforts by placing a low risk BUY trigger at 22.4 and a SELL short trigger at 20.89. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.51 which can be tightened to 0.76 on a 1.87 gain. ATRC closed Tuesday at 21.87. Earnings Report Date: Jul 23, 2024. Beta: 1.37. Market-Cap: 1.058B. Not Optionable.

Phreesia, Inc. (PHR) - SQUEEZE PLAY. PHR traders on both sides of the fence are now locked in a head-to-head shootout. Tuesday'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 23.25 and a SELL short trigger at 21.79. When one of the orders is filled, cancel the remaining order and enter a 1.46 trailing stop. When you've reached a 1.67 paper profit, tighten the stop to 0.73. PHR closed at 22.60 on Tuesday. Earnings Report Date: May 30, 2024. Beta: 0.92. Market-Cap: 1.274B. Not Optionable.

IMPORTANT: Before entering any positions, always use the Risk Control System to determine the level of acceptable risk and the maximum number of shares to buy. Use Gap Adjusted Entries to reset the Entry Price for stocks that gap beyond recommended entry levels.

Stock Splits

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 (Effective 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.      

Split details are also available online at the RightLine Online Stock Split Calendar. For a detailed look at the different stages of a Stock Split, Click Here.

A simple yet powerful tool, the Risk Control Calculator helps you manage risk by recommending a maximum number of shares to purchase. Available in the RightLine Member's Area.

Disclaimer

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