|
October 24, 2023 - The RightLine Report
**********************************
NOTES FROM THE EDITOR
**********************************
The Mind of A Trader - Earnings Season Expectancy
***********************************
"QUICK LIST"
***********************************
Stock 10/24 10/24 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
NWS 22.26 0.37 22.69 1.41/0.71 0.94
ATNI 33.92 0.47 34.58 1.94/0.97 1.58
TNP 21.26 0.50 21.82 1.53/0.77 1.48
SYM 41.11 2.47 42.54 4.46/2.23 3.82
CRWD 182.82 3.74 186.58 12.96/6.48 11.76
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
*****************************
US stocks had a strong day on Tuesday, ending the S&P 500's four-day losing streak and preventing its first five-day decline in over a year. The market received a boost from solid earnings results in the large-cap sector. Most S&P sectors performed well, except for energy, as strong earnings from several Dow Jones components (Verizon, 3M, Coca-Cola) lifted sentiment. The S&P 500 index continued to test its significant technical support/resistance level of 4,235, which represents the 200-day moving average (and it closed above it). Investors were eagerly awaiting earnings reports from tech giants like Microsoft, Google's parent company Alphabet, Visa, and Texas Instruments, all of which were scheduled to report after the close. Wednesday will bring another wave of earnings releases from mega-cap stocks. Bitcoin prices surged, reaching new 18-month highs above $35,000, which benefited shares in the cryptocurrency space, including Coinbase, Marathon Digital Holdings, Riot Blockchain, and MicroStrategy, although the gains later receded. However, not all stocks enjoyed positive outcomes, as several saw declines due to disappointing results and/or guidance, particularly in the financial services sector, including Aaron's, Synchrony Financial, TrueBlue, and TransUnion. While Treasury yields remained steady, with the 10-year yield at 4.85%, the USD/dollar experienced a 0.7% increase, and oil prices fell by more than 2%. International headlines were relatively calm, and the naming of a new House speaker was still pending in Washington, D.C. Oct 23, 2023 Oct 24, 2023
-------------------- --------------------
Dow 32,936.41 -190.87 33,141.38 204.97
Nasdaq 13,018.33 34.52 13,139.87 121.55
S&P 500 4,217.04 -7.12 4,247.68 30.64
NYSE Volume 3.78B 3.85B
NYSE Advancers 896 2,008
NYSE Decliners 1,983 872
Nasdaq Volume 4.68B 4.63B
Nasdaq Advancers 1,387 2,641
Nasdaq Decliners 2,876 1,572
New Highs/Lows
10/17 10/18 10/19 10/20 10/23 10/24
--------------------------------------------
NYSE New Highs 53 26 16 4 7 8
NYSE New Lows 140 257 355 401 454 198
Nasdaq New Highs 43 28 17 9 16 26
Nasdaq New Lows 190 303 471 533 640 347
***********************************
TRADER'S TIP:
***********************************
TRADER'S TIP: "Making Decisions Builds Confidence" Each time we enter or exit a trade we make a decision. Every decision we make causes us to grow - IF we give our experiences the value they deserve. However, if we short-change ourselves for not always making "perfect" choices and view our experiences as "mistakes" our confidence will go down instead of up. Just remember that trading conditions are rarely optimum, and we're always making decisions under less than ideal circumstances. Give yourself a break, knowing that only YOU can set the proper value for each experience you have. Be sure you make the right choice. Build your confidence and never value any trade or other experience as worthless. **************************
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 - 4247.68 October 24, 2023 52-Week High: 4607.07 52-Week Low: 3698.15 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4621.33 Resistance 2: 4450.79 Resistance 1: 4337.47 Pivot: 4280.25 Support 1: 4166.93 Support 2: 4109.71 Support 3: 3939.17 https://www.prorightline.com/rlch/102423SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, OCT. 23 None scheduled TUESDAY, OCT. 24 9:00 am S&P Case-Shiller home price index (20 cities) 9:45 am S&P flash U.S. services PMI 9:45 am S&P flash U.S. manufacturing PMI WEDNESDAY, OCT. 25 10:00 am New home sales THURSDAY, OCT. 26 8:30 am GDP Q3 8:30 am Initial jobless claims 8:30 am Durable-goods orders 8:30 am Durable-goods minus transportation 8:30 am Advanced U.S. trade balance in goods 8:30 am Advanced retail inventories 8:30 am Advanced wholesale inventories 10:00 am Pending home sales FRIDAY, OCT. 27 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) 10:00 am Consumer sentiment (final) 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: "Price Action Near Support And Resistance" It pays to keep an eye on support and resitance lines. One of the best low-risk buy signals takes place when price dips below a significant support line, then comes back up and closes above it. In the same fashion, an excellent shorting opportunity is provided when price rises marginally above a clear resistance line, then reverses to close below it. ***********************************
STOCKS COVERED IN THIS ISSUE
***********************************
COMMUNICATION SERVICES SECTOR News Corporation (NWS: Communication Services/Entertainment) - 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. NWS's reaction to support on Tuesday created a Bullish Bounce setup with a BUY entry trigger at 22.69. Use a 1.41 trailing stop, which should work well with NWS's typical daily range. Tighten it to 0.71 on a 0.94 profit. NWS closed at 22.26 on Tuesday. Earnings Report Date: N/A. Beta: 1.37. Market-Cap: 12.389B. Optionable. ATN International, Inc. (ATNI: Communication Services/Telecom Services) - BULLISH BOUNCE. Some people hear of a stock that's performing nicely and then buy it without any regard for timing the entry. This approach usually leaves money on the table, money that could just as well be added to profits. The Bullish Bounce setup provides a well timed entry and reduces exposure to risk by placing both the entry trigger and exit stop near the bottom of the bounce. We have an opportunity to use this approach with ATNI which met our setup criteria on Tuesday. The BUY trigger for this trade is at 34.58, and the trailing stop is sized at 1.94. Resize the stop to 0.97 upon collecting a 1.58 point gain. ATNI closed Tuesday at 33.92. Earnings Report Date: Oct 25, 2023. Beta: 0.44. Market-Cap: 529.213M. Optionable. ENERGY SECTOR Tsakos Energy Navigation Limited (TNP: Energy/Oil & Gas Midstream) - 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 21.26, TNP is on our radar for a BUY entry at 21.82. If you purchase shares of TNP, be sure to also place a trailing stop of 1.53. Snug it up to 0.77 on a 1.48 gain. Earnings Report Date: Nov 20, 2023. Beta: 0.12. Market-Cap: 627.289M. Optionable. INDUSTRIALS SECTOR Symbotic Inc. (SYM: Industrials/Specialty Industrial Machinery) - BULLISH BOUNCE. Entering a position in the early stages of a bounce is great way to get on board an up-trending stock. The "Bullish Bounce" setup identifies probable candidates by evaluating the trading action that takes place near support levels. SYM's behavior on Tuesday could very well be a sign that a new bounce is underway. Place a BUY trigger at 42.54. In the event your trigger is met, also place a 4.46 trailing stop which can be trimmed down to 2.23 when you have a 3.82 profit. SYM closed Tuesday at 41.11. Earnings Report Date: N/A. Beta: 1.80. Market-Cap: 22.851B. Optionable. TECHNOLOGY SECTOR CrowdStrike Holdings, Inc. (CRWD: Technology/Software - Infrastructure) - NEW HIGH DIP. "Buy the dip" is usually good advice when applied to an up-trending stock. This is expecially true when a new 52-week high has recently made its mark on the charts. CRWD meets the setup requirements, so get ready to BUY if shares reach our trigger price of 186.58. Once you've confirmed that your order is filled, follow it with a 12.96 trailing stop which can be changed to 6.48 when you have a 11.76-point gain. CRWD closed Tuesday at 182.82. Earnings Report Date: Nov 27, 2023. Beta: 0.94. Market-Cap: 43.655B. 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 ---------------- ------- -------- ------- ------ ------- 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!
**********
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. |