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November 29, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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Old School vs. New School
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"QUICK LIST"
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Stock 11/29 11/29 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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MODG 20.46 0.15 20.86 1.21/0.61 1.56
TRS 26.91 0.37 27.34 1.77/0.89 2.92
DRQ 23.19 0.44 23.77 22.28 1.49/0.75 2.66
KDNY 20.26 0.06 20.65 19.26 1.39/0.7 2.18
MAXR 23.00 0.06 23.56 22.12 1.44/0.72 2.3
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 major US stock indices were mixed on Tuesday following economic news showing home prices have cooled off a bit and the Consumer Confidence Index has dipped for the second month in a row. In light equity news, Chemours (CC $31) released full-year guidance that was below analysts' estimates, while UnitedHealth Group (UNH $528) issued a mixed outlook for 2023. Treasury yields, the USD/dollar, gold and oil prices all moved higher. Nov 28, 2022 Nov 29, 2022
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Dow 33,849.46 -497.57 33,852.53 3.07
Nasdaq 11,049.50 -176.86 10,983.78 -65.72
S&P 500 3,963.94 -62.18 3,957.63 -6.31
NYSE Volume 3.65B 3.55B
NYSE Advancers 705 1,823
NYSE Decliners 2,475 1,338
Nasdaq Volume 4.3B 4.6B
Nasdaq Advancers 1,285 2,332
Nasdaq Decliners 3,452 2,298
New Highs/Lows
11/22 11/23 11/24 11/25 11/28 11/29
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NYSE New Highs 76 78 0 63 47 46
NYSE New Lows 68 47 0 30 59 68
Nasdaq New Highs 133 114 0 92 118 85
Nasdaq New Lows 263 170 0 96 189 189
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TRADER'S TIP:
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TRADER'S TIP: "Finding the Daily Trend" Though it sounds simple, the trend can be an elusive rascal that is subject to many definitions. One thing is for certain - determining "the trend" requires an associated reference point, such as time frame or number of bars. To locate short-term trends on a daily chart, consider using the 10-EMA (Exponential Moving Average). If the slope is up, you can safely assume that the daily trend is too. If it's down, a downtrend is likely underway. **************************
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 - 3957.63 November 29, 2022 52-Week High: 4818.62 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: UP Weekly Pivot Levels Resistance 3: 4199.18 Resistance 2: 4098.50 Resistance 1: 4062.31 Pivot: 3997.82 Support 1: 3961.63 Support 2: 3897.14 Support 3: 3796.46 https://www.prorightline.com/rlch/112922SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Wednesday, November 30, 2022: 30-Nov 8:15 am ADP employment report 30-Nov 8:30 am Real GDP (SAAR) revision 30-Nov 8:30 am Real gross domestic income (SAAR) 30-Nov 8:30 am Real domestic final sales (SAAR) revision 30-Nov 8:30 am Trade in goods deficit (advance) 30-Nov 9:45 am Chicago PMI 30-Nov 10 am Job openings 30-Nov 10 am Quits 30-Nov 10 am Pending home sales index 30-Nov 1:30 pm Fed Chair Jerome Powell speaks at the Brookings Institution 30-Nov 2 pm Beige Book Thursday, December 01, 2022: 01-Dec 8:30 am Initial jobless claims 01-Dec 8:30 am Continuing jobless claims 01-Dec 8:30 am PCE price index 01-Dec 8:30 am Core PCE price index 01-Dec 8:30 am PCE price index (year-on-year) 01-Dec 8:30 am Core PCE price index (year-on-year) 01-Dec 8:30 am Real disposable income 01-Dec 8:30 am Real consumer spending 01-Dec 9:45 am S&P U.S. manufacturing PMI 01-Dec 10 am ISM manufacturing index 01-Dec 10 am Construction spending 01-Dec Varies Motor vehicle sales (SAAR) Friday, December 02, 2022: 02-Dec 8:30 am Nonfarm payrolls 02-Dec 8:30 am Unemployment rate 02-Dec 8:30 am Average hourly earnings 02-Dec 8:30 am Labor-force participation rate, 25 to 54-year-olds 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: "The Trader Says . . ." "Being right three or four times out of 10 should yield a person a fortune if they have the sense to cut losses quickly." - Bernard Baruch ***********************************
STOCKS COVERED IN THIS ISSUE
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CONSUMER CYCLICAL SECTOR Topgolf Callaway Brands Corp. (MODG: Consumer Cyclical/Leisure) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, MODG fits the bill. Shares have been in retreat-mode lately, but now this stock is in the process of bouncing from support. Currently priced at 20.46, plan to buy shares at 20.86 and use a 1.21 trailing stop. Tighten the stop to 0.61 on a 1.56 gain. Earnings Report Date: Feb 08, 2023. Beta: 1.66. Market-Cap: 3.782B. Optionable. TriMas Corporation (TRS: Consumer Cyclical/Packaging & Containers) - BULLISH BOUNCE. TRS has charted an upward weekly trend until recently when sellers showed up to push prices lower. On Tuesday the selling ran into solid support. A potential bounce up from this level should attract buyers and likely return TRS to the previously established uptrend. The Bullish Bounce set-up is the basis for our BUY entry, so be ready to go long on a rise to our trigger at 27.34. Set a trailing stop of 1.77, tightening to 0.89 on a 2.92 profit. TRS closed at 26.91 on Tuesday. Earnings Report Date: Feb 27, 2023. Beta: 0.66. Market-Cap: 1.129B. Optionable. ENERGY SECTOR Dril-Quip, Inc. (DRQ: Energy/Oil & Gas Equipment & Services) - SQUEEZE PLAY. DRQ is caught in a dilemma. The stock's compressed price range on Tuesday has resulted in a condition comparable to a wound up rubber band. We anticipate that this undecided equity will take off soon, but with the direction still in question we'll let upcoming market action tell us whether to buy shares or sell short. DRQ is now at 23.19. We can capture price action either way by placing a BUY trigger at 23.77 and a SELL short trigger at 22.28. Once DRQ reveals its direction, enter your triggered order and disregard the other one. As soon as your position is in place, follow up with a trailing stop of 1.49. When you acquire a 2.66 profit, tighten the stop to 0.75. Earnings Report Date: Feb 21, 2023. Beta: 1.26. Market-Cap: 786.598M. Optionable. HEALTHCARE SECTOR Chinook Therapeutics, Inc. (KDNY: Healthcare/Biotechnology) - SQUEEZE PLAY. A look at KDNY's daily chart shows what a price squeeze is all about. The constricted high-low daily trading range has produced a setup similar to a tightly coiled spring. Expect price to move sharply soon, with the direction yet to be determined. Let the upcoming market action resolve whether you will buy shares or sell short. To capture a move either way, place a BUY trigger at 20.65 and a SELL short trigger at 19.26. Once KDNY shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.39 and tighten to 0.7 on a 2.18 gain. KDNY closed Tuesday at 20.26. Earnings Report Date: N/A. Beta: 0.50. Market-Cap: 1.295B. Optionable. TECHNOLOGY SECTOR Maxar Technologies Inc. (MAXR: Technology/Communication Equipment) - SQUEEZE PLAY. Tuesday's trading action forced MAXR's daily price range into an abnormally narrow state. This translates into opportunity; for the cyclical nature of price volatility is to shrink extensively, then swell rapidly as shares move in one direction or another. Instead of trying to predict the direction MAXR will take when price volatility begins to increase, we'll set both a BUY (long) and a SELL (short) trigger to get us into the right trade. Be ready to BUY shares at 23.56 if MAXR moves higher, and place your order to SELL short at 22.12 if price declines to that level. As usual follow your entry with a trailing stop, 1.44 should be sufficient. Reduce your stop to 0.72 on a 2.3 gain. MAXR closed Tuesday at 23.00. Earnings Report Date: Feb 20, 2023. Beta: 1.41. Market-Cap: 1.715B. 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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