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November 9, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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Are you a morning person? While at first glance that question might not seem to have much to do with the market, it's actually an important factor in many traders' daily workload.
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"QUICK LIST"
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Stock 11/09 11/09 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
VSCO 18.42 0.34 18.92 1.39/0.7 2.24
CHEF 23.19 -0.27 24.23 22.33 1.9/0.95 1.7
PKOH 24.26 -0.23 25.17 1.75/0.88 1.98
AMRC 22.72 1.01 23.41 21.33 2.08/1.04 3.56
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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On Thursday, US stocks experienced a significant decline, bringing their winning streaks to an end, due to a spike in Treasury yields following a weak 30-year bond auction, which put pressure on rate-sensitive stocks. The Nasdaq's nine-day win streak was snapped, as was the S&P 500's eight-day streak. The Russell 2000 rose last week, but this week has been a tough one for bulls, with falling stocks erasing much of the prior week's gains. All eleven S&P sectors closed in the "red," with large caps joining the downside. The American Association of Individual Investors reported a sharp drop in bears, while China's exports contracted more than anticipated. Oil prices bounced after hitting a low on Wednesday, but demand concerns have picked up, and China's CPI and PPI prices were disappointing. Gold prices rose, breaking a four-day losing streak, and natural gas futures slid to a two-week low. The USA sold $24B in 30-year bonds at high yield, resulting in a significant pullback in bonds, causing yields to spike. The USD/dollar also bounced following the bond auction and pullback in stocks. Bitcoin hit 18-month highs just below $38,000. Nov 8, 2023 Nov 9, 2023
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Dow 34,112.27 -40.33 33,891.94 -220.33
Nasdaq 13,650.41 10.56 13,521.45 -128.97
S&P 500 4,382.78 4.40 4,347.35 -35.43
NYSE Volume 3.74B 3.91B
NYSE Advancers 1,200 754
NYSE Decliners 1,649 2,126
Nasdaq Volume 4.71B 5.33B
Nasdaq Advancers 1,609 1,076
Nasdaq Decliners 2,647 3,148
New Highs/Lows
11/02 11/03 11/06 11/07 11/08 11/09
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NYSE New Highs 66 82 36 30 38 44
NYSE New Lows 55 18 24 54 66 92
Nasdaq New Highs 43 63 45 48 50 46
Nasdaq New Lows 161 91 112 145 205 319
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TRADER'S TIP:
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TRADER'S TIP: "What Is A Warrant?" A warrant is a certificate entitling the holder to buy a specific number of shares at a specific price, usually above the current market price at the time of issuance, for an extended period anywhere from a few years to forever. Corporations often bundle warrants with another class of security - such as preferred stock - to enhance the marketability of the other class. Warrants are like call options, but with much longer time spans - sometimes years. Warrants are offered by corporations, while exchange-traded call options are not issued by firms. If the price of the security rises to above that of the warrant's exercise price, then the investor can buy the security at the warrant's exercise price and resell it for a profit. Otherwise, the warrant will simply expire or remain unused. Warrants are listed on options exchanges and trade independently of the security with which it was issued. **************************
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 - 4347.35 November 9, 2023 52-Week High: 4607.07 52-Week Low: 3744.22 Daily Trend: UP Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4769.66 Resistance 2: 4528.98 Resistance 1: 4443.66 Pivot: 4288.30 Support 1: 4202.98 Support 2: 4047.62 Support 3: 3806.93 https://www.prorightline.com/rlch/110923SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, NOV. 6 11:00 am Fed Gov. Cook speaks 2:00 pm Federal Reserve senior loan survey TUESDAY, NOV. 7 7:30 am Minneapolis Fed President Kashkari TV appearance 8:00 am Chicago Fed President Goolsbee TV appearance 8:30 am U.S. trade deficit 9:15 am Fed Vice Chair for Supervision Barr speaks 10:00 am Fed Gov. Waller speaks 1:30 pm Fed Gov. Michelle Bowman speaks 3:00 pm Consumer credit WEDNESDAY, NOV. 8 5:15 am Fed Gov. Cook speaks 9:15 am Fed Chair Powell delivers opening remarks 10:00 am Wholesale inventories 2:00 pm Fed Vice Chair for Supervision Barr speaks 4:45 pm Fed Vice Chair Jefferson speaks THURSDAY, NOV. 9 8:30 am Initial jobless claims 2:00 pm Fed Chair Jerome Powell on panel at IMF 8:40 pm Philadelphia Fed President Patrick Harker speaks FRIDAY, NOV 10 7:30 am Dallas Fed President Lorie Logan speaks 9:00 am Atlanta Fed President Raphael Bostic speaks 10:00 am Consumer sentiment (prelim) 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: "More on Bases and Consolidations" Rule of thumb - the longer the sideways action, the bigger the move when price does finally break out in one direction or the other. ***********************************
STOCKS COVERED IN THIS ISSUE
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CONSUMER CYCLICAL SECTOR Victoria's Secret & Co. (VSCO: Consumer Cyclical/Apparel Retail) - BULLISH BOUNCE. If you are looking for another bouncer with profits in mind, VSCO 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 18.42, plan to buy shares at 18.92 and use a 1.39 trailing stop. Tighten the stop to 0.7 on a 2.24 gain. Earnings Report Date: Nov 29, 2023. Beta: 2.00. Market-Cap: 1.423B. Optionable. CONSUMER DEFENSIVE SECTOR The Chefs' Warehouse, Inc. (CHEF: Consumer Defensive/Food Distribution) - SQUEEZE PLAY. When a stock's daily price range contracts to an unusually low point, you can safely assume that in most cases a breakout from that range will result in a nice price move. To capture a portion of this potential movement we have set both a long and a short entry into CHEF. A move to the upside will trigger our BUY entry at 24.23, while a drop to 22.33 will trigger our SELL short entry. Follow your position with a 1.9 trailing stop. Tighten the stop to 0.95 once you have a 1.7 gain. CHEF closed Thursday at 23.19. Earnings Report Date: N/A. Beta: 1.99. Market-Cap: 919.836M. Optionable. INDUSTRIALS SECTOR Park-Ohio Holdings Corp. (PKOH: Industrials/Specialty Industrial Machinery) - NEW HIGH DIP. Thursday's price action is telling us that PKOH is preparing to move back up to the 52-week high that was set just a few days ago. Our BUY trigger at 25.17 is ready to take advantage of a likely bounce from the current support level. Once your order is filled, enter a trailing stop of 1.75. Resize the stop to 0.88 after you reach a 1.98 profit. Earnings Report Date: N/A. Beta: 1.25. Market-Cap: 317.522M. Optionable. Ameresco, Inc. (AMRC: Industrials/Engineering & Construction) - SQUEEZE PLAY. AMRC is caught in a dilemma. The stock's compressed price range on Thursday 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. AMRC is now at 22.72. We can capture price action either way by placing a BUY trigger at 23.41 and a SELL short trigger at 21.33. Once AMRC 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 2.08. When you acquire a 3.56 profit, tighten the stop to 1.04. Earnings Report Date: N/A. Beta: 1.53. Market-Cap: 1.187B. 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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DISCLAIMER
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