September 20, 2022 - The RightLine Report ********************************** NOTES FROM THE EDITOR **********************************
You may have heard about the three mountain bikers who were air lifted to safety in a rescue helicopter after getting lost in the San Bernardino National Forest. The next day they decided to go back into the woods and get their bicycles. Unfortunately, the three young men got lost and had to be rescued ... again!
*********************************** "QUICK LIST" *********************************** Stock 09/20 09/20 Buy Short Trailing Stops Gain Symbol Price +/- Entry Entry Initial/Tighten Amount ------ -------- -------- -------- -------- --------------- -------- CRT 20.90 0.53 21.19 19.63 1.56/0.78 3.34 UPST 23.03 -0.43 24.14 21.94 2.2/1.1 4.24 TMCI 23.55 0.60 24.06 2.52/1.26 2.24 MRUS 20.09 -0.23 20.59 18.69 1.9/0.95 2.38 HLVX 20.29 -0.33 20.61 19.39 1.22/0.61 2.34 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 indices were lower on Tuesday as the market looked ahead to the highly anticipated monetary policy decision from the Federal Reserve on Wednesday. Another 75-basis point rate hike is expected, as traders also wrestle with the possibility of a 100-basis point hike following last week's consumer price inflation report. In economic news, housing starts rose much more than expected, yet building permits declined by more than analysts predicted. On the equities front, UnitedHealth Group (UNH $523) was granted permission from a federal judge to proceed with its acquisition of Change Healthcare, which the US Department of Justice has attempted to stop. Ford Motor Company (F $13) reported that inflation and parts shortages will increase their costs by $1-billion, but the automaker still reaffirmed its full year outlook. The USD/dollar and treasury yields were up, oil prices and gold ended the session lower. Sep 19, 2022 Sep 20, 2022 -------------------- -------------------- Dow 31,019.68 197.26 30,706.23 -313.45 Nasdaq 11,535.02 86.62 11,425.05 -109.97 S&P 500 3,899.89 26.56 3,855.93 -43.96 NYSE Volume 3.82B 4.09B NYSE Advancers 1,865 567 NYSE Decliners 1,344 2,682 Nasdaq Volume 4.2B 4.07B Nasdaq Advancers 2,157 1,266 Nasdaq Decliners 2,489 3,366 New Highs/Lows 09/13 09/14 09/15 09/16 09/19 09/20 -------------------------------------------- NYSE New Highs 17 33 18 13 15 13 NYSE New Lows 105 183 176 362 229 395 Nasdaq New Highs 37 37 25 26 42 29 Nasdaq New Lows 218 265 266 477 490 558 *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "Paper Trading" "The purpose of rehearsal is to create the habit of the objective." ~ William H. Macy, actor Paper trading is helpful because it allows newcomers to learn and develop a certain degree of skill without putting real money into the market. However, this type of "virtual" experience is limited because it doesn't produce genuine emotional involvement. In fact there is a huge difference between the safety of imagined risk and the raw challenge of having to put cash - your cash - at risk. In the real world, emotional challenges due to routine losses usually influence a trader's attitude and decision-making process to a larger degree than ever expected. ************************** 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 - 3855.93 September 20, 2022 52-Week High: 4818.62 52-Week Low: 3636.85 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4507.62 Resistance 2: 4225.42 Resistance 1: 4049.37 Pivot: 3943.22 Support 1: 3767.17 Support 2: 3661.03 Support 3: 3378.83 https://www.prorightline.com/rlch/092022SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, September 19, 2022: NONE Tuesday, September 20, 2022: NONE Wednesday, September 21, 2022: NONE Thursday, September 22, 2022: NONE Friday, September 23, 2022: NONE 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: "Using The Market Map" While Charting and Technical Analysis gives us a map of the market by revealing the price levels where trading decisions need to be made, it doesn't make those decisions for us. It's our job as traders to pilot the journey by entering positions and taking the right exits along the way! *********************************** STOCKS COVERED IN THIS ISSUE *********************************** ENERGY SECTOR Cross Timbers Royalty Trust (CRT: Energy/Oil & Gas E&P) - SQUEEZE PLAY. Trader indecision has put CRT 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 21.19 and a SELL short entry at 19.63. Now it's up to CRT to show us which entry will be filled. Once the trade is underway place a 1.56 trailing stop, which can be tightened to 0.78 after you achieve a 3.34 profit. CRT closed on Tuesday at 20.90. Earnings Report Date: N/A. Beta: 0.65. Market-Cap: 125.4M. Not Optionable. FINANCIAL SERVICES SECTOR Upstart Holdings, Inc. (UPST: Financial Services/Credit Services) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in UPST'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 24.14 and a SELL order at 21.94. Regardless of which order is triggered, cancel the other one and follow your entry with a 2.2 trailing stop. Tighten the stop to 1.1 once you have a 4.24 gain. UPST closed Tuesday at 23.03. Earnings Report Date: Nov 07, 2022. Beta: N/A. Market-Cap: 1.873B. Optionable. HEALTHCARE SECTOR Treace Medical Concepts, Inc. (TMCI: Healthcare/Medical Devices) - 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. TMCI's behavior on Tuesday could very well be a sign that a new bounce is underway. Place a BUY trigger at 24.06. In the event your trigger is met, also place a 2.52 trailing stop which can be trimmed down to 1.26 when you have a 2.24 profit. TMCI closed Tuesday at 23.55. Earnings Report Date: Nov 02, 2022. Beta: N/A. Market-Cap: 1.305B. Optionable. Merus N.V. (MRUS: Healthcare/Biotechnology) - 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 MRUS. A move to the upside will trigger our BUY entry at 20.59, while a drop to 18.69 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 2.38 gain. MRUS closed Tuesday at 20.09. Earnings Report Date: Oct 31, 2022. Beta: 0.89. Market-Cap: 921.693M. Optionable. HilleVax, Inc. (HLVX: Healthcare/Biotechnology) - SQUEEZE PLAY. One interesting trait of price volatility is that it cycles back and forth through periods of expansion and contraction. Stocks that have recently seen their daily price range shift from an average or wide range to an extremely contracted state are ideal candidates for expansive price moves. In many cases the next move is relatively fast and covers a sizable amount of territory. To take advantage of these trades we use both a BUY and a SELL entry. This allows us to enter in whichever direction the breakout takes. In HLVX's case we will enter a BUY should it reach the 20.61 level, or a SELL short trade if it drops to 19.39. As usual a trailing stop is essential, 1.22 which should be tightened to 0.61 on a 2.34 gain. HLVX closed Tuesday at 20.29. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 678.238M. Not 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 ---------------- ------- -------- ------- ------ ------- Nasdaq Inc NDAQ 7/20/2022 8/29/2022 3-for-1 Yes Tesla TSLA 8/5/2022 8/25/2022 3-for-1 Yes Palo Alto Net PANW 8/23/22 9/14/22 3-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. 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