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November 30, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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Getting Ready For The Ride
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"QUICK LIST"
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Stock 12/01 12/01 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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IRDM 38.10 0.07 39.03 36.86 2.17/1.09 1.76
TRMD 28.20 -0.18 29.08 27.26 1.82/0.91 1.76
KIDS 30.83 -0.28 31.64 29.68 1.96/0.98 3.46
CSR 53.34 -0.16 54.56 51.5 3.06/1.53 3.24
FORM 37.58 0.09 38.09 2.37/1.19 3.42
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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Stocks closed with a mixed performance Friday, as a dip in large-cap technology shares weighed on the Nasdaq. However, the Dow surged, propelled by strong earnings from Salesforce.com (CRM), and the S&P 500 spiked in the final minutes of the session, finishing the day near the highs after consistently holding the 4,550 level throughout the week, establishing robust support. This caps off a month of robust gains, with the Dow Jones Industrial Average reaching 52-week highs for the first time since August 1st, rising by over 500 points. The Nasdaq 100 (QQQ) marked a significant climb, achieving its best monthly return since July 2022, with an approximately 11% increase. Overall, the QQQ, with substantial exposure to the technology sector, has seen an impressive 46% surge in 2023. The recent decline in Treasury yields, coupled with the perception that the Fed has concluded its interest rate hikes, has been a driving force behind November's stock market gains. Noteworthy are the top holdings in the QQQ, which include AAPL, MSFT, AMZN, NVDA, and META. Major indices have posted substantial gains in November, with the S&P 500 rising by 8.8, the best since July 2022, the Dow climbing by 8.7%, and the Smallcap Russell 2000 index experiencing a roughly 9% increase this month. European markets have also enjoyed significant gains, with the German DAX rising by 9.49%, the FTSE 100 gaining 1.8%, the CAC 40 surging by 6.17%, and the STOXX Europe 50 Index achieving a 4.48% gain in November. Market sentiment appears high, as indicated by the latest AAII Investor Intelligence Poll, with Bulls standing at 48.8, the highest since the summer when they were at 51, while Bearish sentiment dropped to 19.6, the lowest since June 2021. These are often considered contrarian indicators). The absence of fear is evident in the CBOE Volatility index (VIX), which has hovered around the 13 level throughout the week, having touched its second-lowest level since January 2020 at 12.56 midweek. As major averages head toward the end of the year with significant gains (Nasdaq +36% YTD, S&P +18.5%, Dow +6.9%), the outlook for December remains to be seen. Nov 29, 2023 Nov 30, 2023
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Dow 35,430.42 13.44 35,950.89 520.47
Nasdaq 14,258.49 -23.27 14,226.22 -32.27
S&P 500 4,550.58 -4.31 4,567.80 17.22
NYSE Volume 4.43B 5.48B
NYSE Advancers 1,887 1,787
NYSE Decliners 987 1,038
Nasdaq Volume 4.91B 5.73B
Nasdaq Advancers 2,561 2,159
Nasdaq Decliners 1,718 2,139
New Highs/Lows
11/22 11/24 11/27 11/28 11/29 11/30
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NYSE New Highs 86 89 103 68 97 118
NYSE New Lows 26 6 23 27 25 24
Nasdaq New Highs 135 86 93 91 149 96
Nasdaq New Lows 125 62 131 131 110 127
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TRADER'S TIP:
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TRADER'S TIP: "The Volatility Index" Many traders are familiar with the Volatility Index - or VIX - as a way to gauge long-term market tops and bottoms. Conventional wisdom suggests, "when the VIX is high, it's time to buy ... when the VIX is low, it's time to go." More specifically, readings over 40 are seen as a sign that market participants have grown overly bearish, and that the market is due for a strong rebound. The inverse is true of readings of under 20, which often foretell a market peak. In 2003 the Chicago Board of Options Exchange made some changes in the way the Volatility Index is calculated. The "new" formula takes a broader range of strike prices into account rather than using only "near-the-money" strikes as the original-formula index did. The VIX reflects these changes, while the "old" version is now listed as the "VXO". **************************
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 - 4554.89 November 28, 2023 52-Week High: 4607.07 52-Week Low: 3764.49 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4662.18 Resistance 2: 4604.11 Resistance 1: 4581.72 Pivot: 4546.04 Support 1: 4523.65 Support 2: 4487.97 Support 3: 4429.90 https://www.prorightline.com/rlch/113023SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, NOV. 27 10:00 am New home sales TUESDAY, NOV. 28 9:00 am S&P Case-Shiller home price index (20 cities) 10:00 am Consumer confidence 10:00 am Fed Gov. Christopher Waller speaks 10:00 am Chicago Fed President Austan Goolsbee speaks WEDNESDAY, Nov. 29 8:30 am GDP (first revision) Q3 8:30 am Advanced U.S. trade balance in goods 8:30 am Advanced retail inventories 8:30 am Advanced wholesale inventories 1:45 pm Cleveland Fed President Loretta Mester speaks 2:00 pm Fed Beige Book THURSDAY, NOV. 30 8:30 am Initial jobless claims 8:30 am Personal income (nominal) 8:30 am Personal spending (nominal) 8:30 am PCE index 8:30 am Core PCE index 8:30 am PCE (year-over-year) 8:30 am Core PCE (year-over-year) 9:05 am New York Fed President John Williams speaks 9:45 am Chicago Business Barometer (PMI) 10:00 am Pending home sales FRIDAY, DEC. 1 10:00 am ISM manufacturing 10:00 am Construction spending 10:00 am Chicago Fed President Austan Goolsbee speaks 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: "Efficient Execution" How well do you execute your trading plan? You can judge your effectiveness by how skillfully you move in and out of the market each time you act on an entry or exit signal. Preparation and practice is necessary to avoid delays or mistakes at the point of action. It is helpful to write down the exact required steps in advance, so you will know exactly what to do before you need to do it. When the time arrives, don't wait; always be decisive. Keep records of your results so you can correct any glitches that may arise. This disciplined approach keeps you focused on a repetitive process to prevent execution errors and produce favorable results over time. ***********************************
STOCKS COVERED IN THIS ISSUE
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COMMUNICATION SERVICES SECTOR Iridium Communications Inc. (IRDM: Communication Services/Telecom Services) - SQUEEZE PLAY. The ticker for Thursday's session shows IRDM 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 39.03 and a SELL short trigger at 36.86. When IRDM 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 2.17 trailing stop. Upon reaching a 1.76 profit, resize the stop to 1.09. Earnings Report Date: Feb 14, 2024. Beta: 1.05. Market-Cap: 4.719B. Optionable. ENERGY SECTOR TORM plc (TRMD: Energy/Oil & Gas Midstream) - 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. TRMD 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 29.08 and a SELL short trigger at 27.26. When TRMD 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 1.82 trailing stop. After you've got a 1.76 profit, tighten the stop to 0.91. TRMD closed at 28.20 on Thursday. Earnings Report Date: N/A. Beta: -0.05. Market-Cap: 2.489B. Optionable. HEALTHCARE SECTOR OrthoPediatrics Corp. (KIDS: Healthcare/Medical Devices) - SQUEEZE PLAY. KIDS 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. KIDS closed Thursday at 30.83. The plan is to enter in the right direction by placing a BUY trigger at 31.64 and a SELL short trigger at 29.68. Once KIDS establishes direction, place your triggered order. As soon as you are in the trade, place a trailing stop in the amount of 1.96. After you've collected a 3.46 profit, tighten the stop to 0.98. Earnings Report Date: Feb 26, 2024. Beta: 0.94. Market-Cap: 719.985M. Optionable. REAL ESTATE SECTOR Centerspace (CSR: Real Estate/REIT - Residential) - SQUEEZE PLAY. Thursday's trading session left CSR 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 54.56 and your SELL short trigger at 51.5. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 3.06 trailing stop. Once you have a 3.24 profit, reduce the stop to 1.53. Earnings Report Date: Feb 19, 2024. Beta: 0.97. Market-Cap: 856.08M. Optionable. TECHNOLOGY SECTOR FormFactor, Inc. (FORM: Technology/Semiconductors) - BULLISH BOUNCE. FORM's positive weekly uptrend is still intact despite recent selling that has driven share prices lower. Price action on Thursday shows that traders are aware of the moving average support zone now in play, and they are ready to consider buying again. A shift up from this point will attract even more buyers. The new buying should move FORM back in step with the bullish weekly trend, so our BUY entry trigger is set at 38.09. Once you hold a position, trail a stop of 2.37. Tighten it to 1.19 on a 3.42 gain. FORM closed at 37.58 on Thursday. Earnings Report Date: Feb 06, 2024. Beta: 1.20. Market-Cap: 2.925B. 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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