|
November 8, 2022 - The RightLine Report
**********************************
NOTES FROM THE EDITOR
**********************************
Trading Rule #1 - Take Full Responsibility
***********************************
"QUICK LIST"
***********************************
Stock 11/08 11/08 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
RCKY 23.06 0.18 23.65 22.01 1.64/0.82 2
AMAL 23.77 -0.03 24.25 1.95/0.98 1.44
ALBO 22.15 -0.23 / 0
NTNX 26.65 0.10 27.4 1.99/1 2.14
AEHR 21.66 0.34 22.33 20.42 1.91/0.96 3.64
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/
*****************************
MARKET SUMMARY
*****************************
The major US stock indexes were higher on Tuesday following the release of data from a relatively light economic docket showing that Small Business Optimism has gone down in line with expectations. On the equities front, earnings news headlines included Lyft (LYFT $11) posting a bigger loss than predicted, while DuPont (DD $66) and Activision Blizzard (ATVI $72) both topped profit estimates. Oil prices, treasury yields and the USD/dollar finished the session lower, while gold surged higher. Nov 7, 2022 Nov 8, 2022
-------------------- --------------------
Dow 32,827.00 423.78 33,160.83 333.83
Nasdaq 10,564.52 89.27 10,616.20 51.68
S&P 500 3,806.80 36.25 3,828.11 21.31
NYSE Volume 4.39B 4.61B
NYSE Advancers 2,007 1,947
NYSE Decliners 1,155 1,232
Nasdaq Volume 4.5B 5.15B
Nasdaq Advancers 2,549 2,366
Nasdaq Decliners 2,088 2,213
New Highs/Lows
11/01 11/02 11/03 11/04 11/07 11/08
--------------------------------------------
NYSE New Highs 98 67 52 85 79 77
NYSE New Lows 89 142 264 217 145 97
Nasdaq New Highs 140 116 73 93 101 111
Nasdaq New Lows 162 249 374 353 272 297
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Changing Horses In The Middle Of The Stream" Here's another good reason to avoid changing rules in the middle of a trade. Waiting to finish the trade before making rule changes emphasizes the importance of having a "formal" set of trading procedures. Including a rule that regulates how and when you change your rules implies that you respect for your own rules. This one rule alone will improve your bottom line and set you apart from casual traders with no consistent methods. **************************
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: https://prorightline.com/index.php/technical-analyst-section-rightline-report/ S&P 500 - 3828.11 November 8, 2022 52-Week High: 4818.62 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4220.77 Resistance 2: 4007.13 Resistance 1: 3888.84 Pivot: 3793.49 Support 1: 3675.20 Support 2: 3579.85 Support 3: 3366.21 https://www.prorightline.com/rlch/110822SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, November 07, 2022: 07-Nov 3 pm Consumer credit (level change) Tuesday, November 08, 2022: 08-Nov Election Day 08-Nov 6 am NFIB small-business index Wednesday, November 09, 2022: 09-Nov 10 am Wholesale inventories (revision) Thursday, November 10, 2022: 10-Nov 8:30 am Consumer price index (monthly change) 10-Nov 8:30 am Core CPI (monthly change) 10-Nov 8:30 am CPI (12-month change) 10-Nov 8:30 am Core CPI (12-month change) 10-Nov 8:30 am CPI (3-month SAAR) 10-Nov 8:30 am Core CPI (3-month SAAR) 10-Nov 8:30 am Initial jobless claims 10-Nov 8:30 am Continuing jobless claims 10-Nov 2 pm Federal budget (compared with year ago) Friday, November 11, 2022: 11-Nov Veterans Day holiday 11-Nov 10 am UMich consumer sentiment (early) 11-Nov 10 am UMich consumer 5-year inflation expectations (early) 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/
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Looking for a Good Fortune Teller?" You don't really need a psychic if you plan each position with a "what if" approach. Before entering any trade always ask - "What will I do if price moves in my favor, and what will I do if it moves against me?" Since most traders and investors never consider these questions at all, simply writing down specific answers will put you WAY ahead of the game. Remember to set any bias aside, and play the hand that's dealt. ***********************************
STOCKS COVERED IN THIS ISSUE
***********************************
CONSUMER CYCLICAL SECTOR Rocky Brands, Inc. (RCKY: Consumer Cyclical/Footwear & Accessories) - SQUEEZE PLAY. In certain stocks a tightly constricted price range is a sign that neither bulls nor bears are confident of winning in the near term. This often means that the side that gives up first causes a quick move in the opposite direction. In these fear dominated skirmishes, opposing traders always benefit from the retreat. In the Squeeze Play setup you can actually play both sides of the inevitable surge. RCKY traders reached this state of stand-off on Tuesday with the tightest range of the past seven days. You can take advantage of their efforts by placing a low risk BUY trigger at 23.65 and a SELL short trigger at 22.01. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.64 which can be tightened to 0.82 on a 2 gain. RCKY closed Tuesday at 23.06. Earnings Report Date: N/A. Beta: 0.82. Market-Cap: 168.851M. Not Optionable. FINANCIAL SERVICES SECTOR Amalgamated Financial Corp. (AMAL: Financial Services/Banks-Regional) - BULLISH BOUNCE. Among other strengths, the Bullish Bounce protects traders from buying a stock "at the top" of its current cycle. The entry into this setup always takes place in upward-moving stocks that have retreated a bit under normal conditions. Now sitting at 23.77, AMAL is on our radar for a BUY entry at 24.25. If you purchase shares of AMAL, be sure to also place a trailing stop of 1.95. Snug it up to 0.98 on a 1.44 gain. Earnings Report Date: Jan 25, 2023. Beta: 0.78. Market-Cap: 738.843M. Optionable. HEALTHCARE SECTOR Albireo Pharma, Inc. (ALBO: Healthcare/Biotechnology) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in ALBO's narrowest trading range of the past seven sessions. With neither group able to take complete control on Tuesday, the stock's short term destiny is up for grabs. You can capitalize on this unusually tight condition by placing both a BUY order at and a SELL order at . Regardless of which order is triggered, cancel the other one and follow your entry with a trailing stop. Tighten the stop to once you have a 0 gain. ALBO closed Tuesday at 22.15. Earnings Report Date: Nov 08, 2022. Beta: 0.79. Market-Cap: 434.417M. Optionable. TECHNOLOGY SECTOR Nutanix, Inc. (NTNX: Technology/Software-Infrastructure) - BULLISH BOUNCE. Everyone familiar with price charts knows that a stock tends to bounce its way higher rather than move in a straight line. The lower levels of these short-term rebounds offer a safe and often early entry into stocks that are in the process of establishing longer-term uptrends. NTNX's reaction to support on Tuesday created a Bullish Bounce setup with a BUY entry trigger at 27.4. Use a 1.99 trailing stop, which should work well with NTNX's typical daily range. Tighten it to 1 on a 2.14 profit. NTNX closed at 26.65 on Tuesday. Earnings Report Date: Nov 30, 2022. Beta: 1.23. Market-Cap: 6.222B. Optionable. Aehr Test Systems (AEHR: Technology/Semiconductor Equipment & Materials) - SQUEEZE PLAY. Trader indecision has put AEHR squarely in the center of a Bull versus Bear standoff. This tight spot should soon give way to a clear winner in the short-term, and we want to be in position for the move. To do that we've set a BUY entry at 22.33 and a SELL short entry at 20.42. Now it's up to AEHR to show us which entry will be filled. Once the trade is underway place a 1.91 trailing stop, which can be tightened to 0.96 after you achieve a 3.64 profit. AEHR closed on Tuesday at 21.66. Earnings Report Date: Jan 04, 2023. Beta: 1.65. Market-Cap: 595.55M. 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
***********************************
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!
**********
If you prefer to receive this report in html with color and
graphics, or have any questions, send us an email using our contact
form at:https://prorightline.com/index.php/contact-us/
======================================================================
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. |