November 1, 2022 - The RightLine Report

                      NOTES FROM THE EDITOR

Turbulent price action can sometimes wear on a trader's nerves. Fortunately, there are several ways that even the most sensitive among us can cope with the reality of a volatile market.

Here are four guidelines we can all benefit from, regardless of the time frames that we choose to trade and invest in.

1) Be sure of your time horizon.

Most people buy stocks without first considering how long they will own them. Are your plans short-term or long-term? It makes a big difference. Although history shows that the market generally goes up in the long run, it doesn't reveal what's just ahead.

2) Don't rely solely on the clock or calendar.

While this may sound odd at first, choosing our time horizon has as much to do with price movement as it does clock or calendar time. A trader who specializes in trading 15-minute bars has an idea of how much the price should move within that "time" frame. The actual amount of time in a "normal" trade of this type can be anywhere from 15- minutes to several hours, or on some occasions even a few days.

However, an experienced trader would never expect this type of trade to go on for weeks or months. He or she is always aware of the normal price movement that can be expected during the average trade time period, and doesn't plan on being in the trade indefinitely.

The same reasoning holds true for any chosen time frame, whether we are trading one-minute bars or monthly charts. Profit is the only part of the trading clock with cash value, so when making trade management decisions always consider your earnings too.

3) Get Control of the Risk Factor.

No matter how well we trade, sometimes we're going to be wrong. Despite all of the hype to the contrary, most successful traders win only about half of their trades. Using intelligent risk management tactics insures that losses won't hurt us.

4) Use Your Emotional Intelligence.

We've got to play the hand we're dealt, even if we don't like it. The stock market is much bigger than any one of us. We have no control over what it does, but we do have complete control over how we respond to it. Getting angry when the market goes down doesn't make it go back up, but the emotional stress from anger has the potential to cloud our judgment.

So don't be a fool ... stay cool and relax by the pool.

Trade well,

- Thomas Sutton, Editor

                           "QUICK LIST"

Stock     11/01     11/01      Buy      Short   Trailing Stops     Gain 
Symbol    Price      +/-      Entry     Entry   Initial/Tighten   Amount 
------  --------  --------  --------  --------  ---------------  --------

SSTK      49.96     -0.07               48.06        3.56/1.78         4
SASR      35.10     -0.34               33.82        2.69/1.35       2.1
ABBV     146.89      0.49    149.64                  9.48/4.74       7.8
NOTV      20.56     -0.22     21.54      19.9        1.64/0.82      2.86
FORM      20.01     -0.20     21.12     19.33         1.79/0.9      2.32

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 In addition,always use the RightLine Risk Calculator before entering any position. For access to the Risk Calculator, go to

To learn more about controlling risk go to the RightLine Risk Control System at

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

Questions? Send us an email using our contact form at:
                           MARKET SUMMARY

The major US stock indexes were lower on Tuesday ahead of Wednesday's conclusion of the Federal Open Market Committee (FOMC) meeting, when the Fed Bank is expected to raise the fed funds target rate by another 75-basis points. In economic news, a bounce in the current tight labor market raised monetary policy tightening worries, while manufacturing reports show that activity remains in expansion territory and construction spending is surprisingly up from the previous month. On the equities front, pharmaceutical makers Pfizer (PFE $48) and Eli Lilly and Company (LLY $353) both released upbeat profit reports, with LLY lowering guidance and PFE raising it. Oil prices and gold finished the session higher, the USD/dollar was near even, treasuries were mixed.

                       Oct 31, 2022           Nov 1, 2022    
                  --------------------   --------------------
Dow                 32,732.95  -128.85     32,653.20   -79.75
Nasdaq              10,988.15  -114.31     10,890.85   -97.30
S&P 500              3,871.98   -29.08      3,856.10   -15.88

NYSE Volume                      4.85B                  4.49B
NYSE Advancers                   1,501                  1,890
NYSE Decliners                   1,708                  1,316

Nasdaq Volume                    4.77B                   4.7B
Nasdaq Advancers                 2,089                  2,637
Nasdaq Decliners                 2,564                  2,044

                                 New Highs/Lows

                   10/25  10/26  10/27  10/28  10/31  11/01
NYSE New Highs        70     82     76     89     94     98
NYSE New Lows        114     97    128    113    109     89
Nasdaq New Highs     105    132    109    121    138    140
Nasdaq New Lows      188    144    183    197    167    162

                              TRADER'S TIP:  

TRADER'S TIP: "No One Knows"

The stock market is a world shaped by human behavior, and no one has the slightest idea of what will happen in the future. Successful traders don't base their actions on what they THINK will happen, but instead they respond to what DOES happen. Price can only do three things; go up, go down, or go sideways. Plan ahead for all three, and you can react intelligently to whatever the market decides to do.
                         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:
S&P 500 - 3856.10 November 1, 2022

52-Week High: 4818.62
52-Week Low: 3491.58
Daily Trend: UP
Weekly trend: DOWN
Weekly Pivot Levels
Resistance 3: 4176.91
Resistance 2: 4013.14
Resistance 1: 3957.10
Pivot: 3849.37
Support 1: 3793.33
Support 2: 3685.60
Support 3: 3521.83
NASDAQ Composite - 10890.85 November 1, 2022 52-Week High: 16212.23 52-Week Low: 10088.83 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 12002.82 Resistance 2: 11505.77 Resistance 1: 11304.11 Pivot: 11008.72 Support 1: 10807.06 Support 2: 10511.67 Support 3: 10014.62
Dow Industrials - 32653.20 November 1, 2022 52-Week High: 36952.65 52-Week Low: 28660.94 Daily Trend: UP Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 35761.14 Resistance 2: 34032.74 Resistance 1: 33447.27 Pivot: 32304.34 Support 1: 31718.87 Support 2: 30575.94 Support 3: 28847.53
************************** MARKET CALENDAR **************************
--ECONOMIC REPORTS AND EVENTS (all times are Eastern):
Monday, October 31, 2022:
31-Oct  9:45 am   Chicago PMI

Tuesday, November 01, 2022:
01-Nov  9:45 am   
01-Nov  10 am   ISM manufacturing index
01-Nov  10 am   Jobs openings
01-Nov  10 am   Quits
01-Nov  10 am   Construction spending
01-Nov  Varies   Motor vehicle sales (SAAR)

Wednesday, November 02, 2022:
02-Nov  8:15 am   ADP employment report (level change)
02-Nov  10 am   Rental vacancy rate
02-Nov   2 pm   FOMC announcement
02-Nov  2:30 pm   Fed Chair Jerome Powell press conference

Thursday, November 03, 2022:
03-Nov  8:30 am   Initial jobless claims
03-Nov  8:30 am   Continuing jobless claims
03-Nov  8:30 am   Foreign trade deficit
03-Nov  8:30 am   Productivity (SAAR)
03-Nov  8:30 am   Unit labor costs (SAAR)

Friday, November 04, 2022:
04-Nov  8:30 am   Nonfarm payrolls (level change)
04-Nov  8:30 am   Unemployment rate
04-Nov  8:30 am   Average hourly earnings
04-Nov  8:30 am   Labor-force participation rate, ages 25-54

For a chart of typical Up or Down market reactions to specific major US economic reports, go to "Economic Indicator Effects" at this link:
                              TRADER'S TIP: 

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    


Shutterstock, Inc. (SSTK: Communication Services/Internet Content & Information) - BEARISH U-TURN. Stocks stuck in a downtrend like SSTK tend to bounce downhill rather than slide lower in a straight line. After interacting with a moving average resistance level on Tuesday, SSTK is poised to drop again. To take advantage of this setup, prepare to SELL shares short at 48.06. As usual, follow your entry with a trailing stop. A 3.56 stop will fit SSTK's current price range. Tighten it to 1.78 on a 4 gainer. Earnings Report Date: N/A. Beta: 1.12. Market-Cap: 1.789B. Optionable.


Sandy Spring Bancorp, Inc. (SASR: Financial Services/Banks-Regional) - BEARISH U-TURN. Sometimes traders hear about a stock that's in trouble and then short it without any thought to timing the entry. This method often results in less profits even when the trade moves in the desired direction. The Bearish U-Turn setup provides a smoother entry than just jumping in. It also reduces risk by placing both the entry trigger and exit stop near the top of the reversal. We'll use this approach with SASR which met our setup requirements on Tuesday. The SELL short trigger for this trade is set at 33.82, and the trailing stop is sized at 2.69. Reset the stop to 1.35 upon getting a 2.1 point gain. SASR closed Tuesday at 35.10. Earnings Report Date: Jan 18, 2023. Beta: 1.00. Market-Cap: 1.582B. Optionable.


AbbVie Inc. (ABBV: Healthcare/Drug Manufacturers-General) - BULLISH BOUNCE. Looking a bit frayed after sliding downhill in recent sessions, on Tuesday ABBV seemed intent on initiating a rebound. With moving average support nearby, ABBV is at a logical place for Bulls to regroup and extend the familiar uptrend that shareholders have become accustomed to. On continued buying, plan on taking long entries with a BUY at 149.64. Manage risk with a 9.48 stop. Tighten your stop to 4.74 when you have a 7.8 profit. ABBV ended the day at 146.89. Earnings Report Date: Jan 31, 2023. Beta: 0.65. Market-Cap: 259.716B. Optionable.

Inotiv, Inc. (NOTV: Healthcare/Diagnostics & Research) - SQUEEZE PLAY. Tuesday's narrow price range has created a potentially profitable setup in NOTV, 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 21.54 and a SELL short entry at 19.9. Let NOTV's price action determine your long or short entry. Once the order is filled, place a 1.64 trailing stop, and tighten it to 0.82 upon getting a 2.86 gain. NOTV closed Tuesday at 20.56. Earnings Report Date: Dec 14, 2022. Beta: 2.66. Market-Cap: 526.223M. Optionable.


FormFactor, Inc. (FORM: Technology/Semiconductors) - SQUEEZE PLAY. Traders are feeling the pressure as FORM'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 21.12 and a SELL short entry at 19.33. FORM's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.79 trailing stop. Tighten it to 0.9 after you get a 2.32 gain. FORM closed Tuesday at 20.01. Earnings Report Date: Jan 31, 2023. Beta: 1.26. Market-Cap: 1.543B. 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.

Use "Gap Adjusted Entries" to reset the Entry Price for stocks that gap beyond recommended entry levels.

                           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  
---------------- -------     --------    -------     ------  -------   
Copart            CPRT       11/4/2022 11/4/2022     2-for-1   Yes

For a closer look at the different stages of a Stock Split go to:
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