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May 9, 2024 - The RightLine Report
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NOTES FROM THE EDITOR
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The Myth: "You have to be very smart to make money trading stocks online."
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"QUICK LIST"
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Stock 05/09 05/09 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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SILK 20.41 1.18 20.84 2.05/1.03 1.5
PHVS 20.57 -0.28 21.12 19.71 1.41/0.71 4.24
LBPH 21.99 0.29 22.39 20.96 1.43/0.72 2.56
BCYC 23.58 -0.04 24.33 22.76 1.57/0.79 2.12
BAND 21.52 0.37 21.91 20.17 1.74/0.87 1.2
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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The S&P 500 ended higher on Thursday, maintaining its momentum for a third consecutive week of gains. However, US weekly jobless claims climbed to their highest level of the year at 231,000, signaling some weakness in the domestic labor market. This uptick in jobless claims may reinforce the Federal Reserve's belief that current interest rates are sufficiently restrictive and could potentially lead to a cooling of wage gains. Treasury yields saw a decline across the board, with the 2-year Treasury yield, often seen as a gauge for the fed funds rate, dipping by 0.02%, while the 10-year Treasury yield dropped to 4.45%. This recent downward trend in yields, coupled with market expectations of two Fed rate cuts this year, has provided support to both equity and bond markets. Inflation will take center stage next week, with the release of the consumer price index (CPI) inflation data for April scheduled for Wednesday. After surpassing expectations in the first three months of the year, forecasts suggest a moderation in both headline and core CPI inflation for April. We anticipate that achieving the final phase of inflation moderation may require patience and time, but we remain optimistic about further progress. Factors contributing to this could include a slowdown in shelter and used car prices, as well as a broader easing of services inflation driven by a deceleration in wage growth. We believe the Fed will likely await a series of three or more favorable inflation reports before considering a rate cut, a scenario we expect to unfold by the end of the year. May 8, 2024 May 9, 2024
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Dow 39,056.39 172.13 39,387.76 331.37
Nasdaq 16,302.76 -29.80 16,346.26 43.51
S&P 500 5,187.67 -0.03 5,214.08 26.41
NYSE Volume 3.86B 3.73B
NYSE Advancers 1,260 1,986
NYSE Decliners 1,547 805
Nasdaq Volume 4.55B 4.52B
Nasdaq Advancers 1,879 2,626
Nasdaq Decliners 2,280 1,578
New Highs/Lows
05/02 05/03 05/06 05/07 05/08 05/09
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NYSE New Highs 80 123 169 75 139 192
NYSE New Lows 26 18 19 212 32 18
Nasdaq New Highs 81 131 153 159 98 158
Nasdaq New Lows 101 79 54 70 84 93
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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. **************************
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/ https://www.prorightline.com/rlch/050924SPX.jpg--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" 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: "Monthly Stock Options Expirations" US stock options expire at 11:59AM on the third Saturday of each month. Since most retail traders can't trade options on Saturday, this equates to 4:00pm Eastern Time closing bell. This date changes to the third Thursday at 4:00pm whenever Friday is a holiday. ***********************************
STOCKS COVERED IN THIS ISSUE
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HEALTHCARE SECTOR Silk Road Medical, Inc (SILK: Healthcare/Medical Devices) - BULLISH BOUNCE. This trader-friendly setup turns repetitive stock behavior into real profits. Based on the tendency for up-trending stocks to drop briefly and then resume the up-trend, the Bullish Bounce places traders into excellent stocks when conditions are primed for more skyward movement. SILK's current price action near moving average support signals a potential BUY entry at 20.84, followed by a 2.05 trailing stop which can be tightened to 1.03 upon earning 1.5. SILK closed Thursday at 20.41. Earnings Report Date: Jul 30, 2024. Beta: 1.44. Market-Cap: 805.05M. Optionable. Pharvaris N.V. (PHVS: Healthcare/Biotechnology) - SQUEEZE PLAY. Sometimes when Bulls and Bears face off in the market arena for a typical day-long battle, there is no clear winner. This is evident when the daily price range contracts to an unusually narrow state. PHVS found itself in this condition on Thursday when neither buyers or sellers were able to push ahead. This setup provides traders a chance to hop on board the next breakout - whether it's to the upside or down - with little risk of loss. To do this place a BUY order at 21.12 and a SELL short trigger at 19.71. When PHVS moves outside of Thursday's range, one of the orders will be filled. Once you hold a position of shares, cancel the unfilled order and place a 1.41 trailing stop. After you've got a 4.24 profit, tighten the stop to 0.71. PHVS closed at 20.57 on Thursday. Earnings Report Date: Aug 5, 2024. Beta: --. Market-Cap: 1.107B. Optionable. Longboard Pharmaceuticals, Inc. (LBPH: Healthcare/Biotechnology) - SQUEEZE PLAY. The ticker for Thursday's session shows LBPH 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 22.39 and a SELL short trigger at 20.96. When LBPH 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 1.43 trailing stop. Upon reaching a 2.56 profit, resize the stop to 0.72. Earnings Report Date: Aug 1, 2024. Beta: 1.27. Market-Cap: 854.973M. Optionable. Bicycle Therapeutics plc (BCYC: Healthcare/Biotechnology) - SQUEEZE PLAY. Thursday's trading session left BCYC 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 24.33 and your SELL short trigger at 22.76. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.57 trailing stop. Once you have a 2.12 profit, reduce the stop to 0.79. Earnings Report Date: Aug 1, 2024. Beta: --. Market-Cap: 897.764M. Optionable. TECHNOLOGY SECTOR Bandwidth Inc. (BAND: Technology/Software - Infrastructure) - SQUEEZE PLAY. BAND 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. BAND closed Thursday at 21.52. The plan is to enter in the right direction by placing a BUY trigger at 21.91 and a SELL short trigger at 20.17. Once BAND 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 1.2 profit, tighten the stop to 0.87. Earnings Report Date: Jul 31, 2024. Beta: 1.44. Market-Cap: 581.206M. 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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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. |