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November 22, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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Over the years I've noticed that some people seem more interested in other people's money than in their own. For example, many times I've heard folks talk with enthusiasm about Bill Gate's or Warren Buffet's billions, yet few ever show enthusiasm or make any serious action when it comes to growing their own personal accounts.
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"QUICK LIST"
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Stock 11/22 11/22 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
VCYT 26.37 0.47 26.72 1.95/0.98 3.06
ISEE 21.13 0.05 21.48 19.79 1.69/0.85 2.68
SNCY 20.82 0.27 21.14 1.58/0.79 1.86
PD 21.15 -0.16 21.48 19.83 1.65/0.83 2.76
MAXN 21.86 -0.47 22.95 20.82 2.13/1.07 2.86
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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US stocks moved higher in a subdued Tuesday session accentuated by the absence of many traders who are already enjoying the Thanksgiving holiday. The markets are closed on Thursday for Thanksgiving and will re-open an shortened session on Friday. A light economic calendar reported that the Richmond Fed Manufacturing Index still remains in contraction territory. Equity headlines delivered some positive earnings surprises, as Dell Technologies (DELL $44) beat profit expectations, as did Dollar Tree (DLTR $152) yet the company dropped its earnings guidance to the lower half of its previous outlook. Treasury yields were mostly lower, oil prices moved higher, the USD/Dollar dipped, and gold finished the session near even. Nov 21, 2022 Nov 22, 2022
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Dow 33,700.28 -45.41 34,098.10 397.82
Nasdaq 11,024.51 -121.55 11,174.41 149.90
S&P 500 3,949.94 -15.40 4,003.58 53.64
NYSE Volume 3.86B 3.91B
NYSE Advancers 1,471 2,368
NYSE Decliners 1,698 807
Nasdaq Volume 3.98B 4.21B
Nasdaq Advancers 1,800 2,852
Nasdaq Decliners 2,862 1,839
New Highs/Lows
11/15 11/16 11/17 11/18 11/21 11/22
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NYSE New Highs 65 53 34 70 53 76
NYSE New Lows 28 55 69 42 59 68
Nasdaq New Highs 107 68 63 73 99 133
Nasdaq New Lows 124 166 198 186 278 263
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TRADER'S TIP:
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TRADER'S TIP: "Is Shorting Risky?" Though some folks believe that shorting is riskier than going long, it is far more dangerous to be on the wrong side of an established downtrend. And of course you always have the option to stand aside. If you aren't comfortable trading in a declining trend, then by all means head for the sidelines - there will be plenty of buy-side opportunities once the trend reverses. **************************
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 - 4003.58 November 22, 2022 52-Week High: 4818.62 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 4211.50 Resistance 2: 4089.20 Resistance 1: 4027.27 Pivot: 3966.90 Support 1: 3904.97 Support 2: 3844.60 Support 3: 3722.30 https://www.prorightline.com/rlch/112222SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, November 21, 2022: 21-Nov 8:30 am Chicago Fed national activity index Tuesday, November 22, 2022: 22-Nov None scheduled Wednesday, November 23, 2022: 23-Nov 8:30 am Durable goods orders 23-Nov 8:30 am Core capital equipment orders 23-Nov 8:30 am Initial jobless claims 23-Nov 8:30 am Continuing jobless claims 23-Nov 9:45 am 23-Nov 9:45 am 23-Nov 10 am UMich consumer sentiment index (final) 23-Nov 10 am UMich 5-year inflation expectations (final) 23-Nov 10 am New home sales (SAAR) 23-Nov 2 pm FOMC minutes Thursday, November 24, 2022: 24-Nov Thanksgiving Day holiday. None scheduled. Friday, November 25, 2022: 25-Nov None scheduled 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: "Setting Stops For Short Positions" Here are a few options for setting stops on short positions: 1. On daily charts, set the stop just above yesterday's high unless it was a big down day. Then move the stop closer to today's open. 2. Set the stop just above a recent minor or major resistance level. 3. Use the daily Average True Range to determine the expected movement for the stock, and set the stop just beyond the range amount. (ATR is a feature found in RightLine Charts and other charting packages.)Set the stop the instant your order gets filled. Move stops down as the stock declines, first to break even, then to protect profits. When you use trailing stops on a short position, don't raise stops - lower them. As the stock moves down and tends to "bottom out" or market conditions become bullish, "tighten the stop" which will effectively employ a "down or out" strategy. ***********************************
STOCKS COVERED IN THIS ISSUE
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HEALTHCARE SECTOR Veracyte, Inc. (VCYT: Healthcare/Biotechnology) - BULLISH BOUNCE. Up-trending stocks like VCYT 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, VCYT is poised to lift off again. To take advantage of this setup, prepare to BUY shares at 26.72 if positive price action occurs. As always, follow your entry with a trailing stop. A 1.95 trailer should work well with VCYT. Tighten it to 0.98 on a 3.06 gainer. Earnings Report Date: N/A. Beta: 1.28. Market-Cap: 1.892B. Optionable. IVERIC bio, Inc. (ISEE: Healthcare/Biotechnology) - SQUEEZE PLAY. ISEE 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 21.48 and a SELL short entry at 19.79. Once your trade is filled, enter a 1.69 trailing stop. Tighten it to 0.85 after a 2.68 gain. ISEE closed on Tuesday at 21.13. Earnings Report Date: Feb 22, 2023. Beta: 1.09. Market-Cap: 2.551B. Optionable. INDUSTRIALS SECTOR Sun Country Airlines Holdings, Inc. (SNCY: Industrials/Airlines) - BULLISH BOUNCE. Here is another example of a stock in an established uptrend that has recently experienced a counter-trend drop. The sliding price action has now found support near a moving average zone, bouncing upward during Tuesday's session to close at 20.82. Anticipate the rebound to continue, and be ready to buy SNCY at 21.14. Follow your entry with a trailing stop of 1.58 which can be tightened to 0.79 on a 1.86 profit. Earnings Report Date: Feb 06, 2023. Beta: N/A. Market-Cap: 1.211B. Optionable. TECHNOLOGY SECTOR PagerDuty, Inc. (PD: Technology/Software-Application) - SQUEEZE PLAY. Tuesday's trading session left PD 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 21.48 and your SELL short trigger at 19.83. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.65 trailing stop. Once you have a 2.76 profit, reduce the stop to 0.83. Earnings Report Date: Dec 01, 2022. Beta: 1.06. Market-Cap: 1.886B. Optionable. Maxeon Solar Technologies, Ltd. (MAXN: Technology/Solar) - SQUEEZE PLAY. Traders are feeling the pressure as MAXN'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 22.95 and a SELL short entry at 20.82. MAXN's price movement will decide which entry is filled. As soon as you're in the trade, enter a 2.13 trailing stop. Tighten it to 1.07 after you get a 2.86 gain. MAXN closed Tuesday at 21.86. Earnings Report Date: N/A. Beta: 0.74. Market-Cap: 983.626M. 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 ---------------- ------- -------- ------- ------ ------- 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: https://prorightline.com/index.php/trading-stock-splits-stages/ ======================================================================
Best of luck and have a Great Week!
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