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September 21, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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Myopia - An eye condition, commonly known as "nearsightedness," that causes distant objects to be blurred while closer objects are clearly seen.
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"QUICK LIST"
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Stock 09/21 09/21 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
------ -------- -------- -------- -------- --------------- --------
LEU 50.89 -0.84 52.29 4.58/2.29 4.32
PRVA 21.97 -0.04 22.4 20.86 1.54/0.77 1.62
PTCT 24.82 -0.71 26.11 23.58 2.53/1.27 2.48
SMTC 25.22 -0.26 24.03 2.04/1.02 1.86
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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Thursday witnessed the continuation of surging Treasury yields applying downward pressure on US equities, resulting in a third consecutive day of losses. Investor concerns regarding elevated interest rates and the looming specter of a potential recession endured, spurred on by the recent signal from the Federal Reserve that another rate hike might be necessary within the year. This unsettling backdrop saw both the S&P 500 Index (SPX) and the Nasdaq Composite (COMP) teetering near lower levels not seen since June. Undoubtedly, the surge in yields is the primary factor responsible for the current market downturn. Additionally, concerns among investors are exacerbated by elevated oil prices and the strengthening dollar. Collectively, these elements represent adverse conditions for stocks. are net negatives for stocks. Sectors that were perceived to be more vulnerable to potential recession or rising interest rates bore the brunt of the market's decline. Real estate, consumer discretionary, and financial companies ranked among the poorest-performing sectors on that Thursday. The KBW Regional Banking Index (KRX) marked an 11-week low. The outlook for sustained higher interest rates contributed to the USDollar Index (DXY) reaching a 6 month high, although it eventually pulled back. Here's a summary of where the key market indices concluded: The S&P 500 Index ended the day down by 72 points (1.6%) at 4,330. The Dow Jones Industrial Average (DJIA) wrapped up with a loss of 370 points (1.1%) at 34,070. The Nasdaq Composite (COMP) closed the day with a decrease of 245 points (1.8%) at 13,224. Sep 20, 2023 Sep 21, 2023
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Dow 34,440.88 -76.85 34,070.42 -370.46
Nasdaq 13,469.13 -209.06 13,223.98 -245.14
S&P 500 4,402.20 -41.75 4,330.00 -72.20
NYSE Volume 3.32B 3.67B
NYSE Advancers 1,169 462
NYSE Decliners 1,735 2,489
Nasdaq Volume 4.8B 5.02B
Nasdaq Advancers 1,437 1,142
Nasdaq Decliners 2,901 3,177
New Highs/Lows
09/14 09/15 09/18 09/19 09/20 09/21
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NYSE New Highs 64 45 40 46 50 14
NYSE New Lows 63 91 103 103 68 220
Nasdaq New Highs 49 61 59 44 52 27
Nasdaq New Lows 185 238 271 297 275 444
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TRADER'S TIP:
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TRADER'S TIP: "Information Overload?" So how do we manage the huge amount of market info and other financial advice being thrown our way every day? We can filter out a lot of the useless information by asking another question; how does this specifically help me to become a more successful trader and investor? Broad generalizations are helpful to an extent, but focusing on exactly what we need can provide the high-octane fuel to accelerate our progress. **************************
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 - 4330.00 September 21, 2023 52-Week High: 4607.07 52-Week Low: 3491.58 Daily Trend: DOWN Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4599.39 Resistance 2: 4534.62 Resistance 1: 4492.47 Pivot: 4469.84 Support 1: 4427.69 Support 2: 4405.06 Support 3: 4340.28 https://www.prorightline.com/rlch/092123SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, SEPT. 18 10:00 am Home builder confidence index TUESDAY, SEPT. 19 8:30 am Housing starts 8:30 am Building permits WEDNESDAY, SEPT. 20 2:00 pm Fed interest-rate decision 2:30 pm Fed Chair Powell press conference THURSDAY, SEPT. 21 8:30 am Initial jobless claims 8:30 am Philadelphia Fed manufacturing survey 8:30 am U.S. current account deficit 10:00 am U.S. leading economic indicators 10:00 am Existing home sales FRIDAY, SEPT. 22 8:50 am Fed Gov. Lisa Cook speaks 9:45 am S&P flash U.S. services PMI 9:45 am S&P flash U.S. manufacturing PMI 1:00 pm Minneapolis Fed President Neel Kashkari speaks 1:00 pm San Francisco Fed President Mary Daly 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: "Is Genius A Requirement?" You don't have to be "gifted" to trade intelligently. Though the skills needed to trade successfully can certainly take several years to acquire, trading isn't rocket science. While a high IQ isn't required, persistence and discipline are. Fortunately these two qualities are available to anyone who really wants them. ***********************************
STOCKS COVERED IN THIS ISSUE
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ENERGY SECTOR Centrus Energy Corp. (LEU: Energy/Uranium) - BULLISH BOUNCE. Another bullish bouncer, LEU appears ready to resume trading in an uptrend after recent selling forced the stock lower for several days. Thursday's positive price action near Moving Average support says it's time to BUY shares if LEU reaches our entry trigger set at 52.29. Also place a 4.58 trailing stop which can be narrowed to 2.29 when you reach a 4.32 profit. LEU closed Thursday at 50.89. Earnings Report Date: Nov 06, 2023. Beta: 2.07. Market-Cap: 790.098M. Optionable. HEALTHCARE SECTOR Privia Health Group, Inc. (PRVA: Healthcare/Health Information Services) - SQUEEZE PLAY. The ticker for Thursday's session shows PRVA 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 22.4 and a SELL short trigger at 20.86. When PRVA 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 1.54 trailing stop. Upon reaching a 1.62 profit, resize the stop to 0.77. Earnings Report Date: Nov 08, 2023. Beta: 0.80. Market-Cap: 2.578B. Optionable. PTC Therapeutics, Inc. (PTCT: Healthcare/Biotechnology) - SQUEEZE PLAY. Thursday's trading session left PTCT 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 26.11 and your SELL short trigger at 23.58. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 2.53 trailing stop. Once you have a 2.48 profit, reduce the stop to 1.27. Earnings Report Date: Oct 25, 2023. Beta: 0.37. Market-Cap: 1.87B. Optionable. TECHNOLOGY SECTOR Semtech Corporation (SMTC: Technology/Semiconductors) - BEARISH U-TURN. During Thursday's trading action, SMTC encountered solid resistance near its 50 EMA (Exponential Moving Average) and looks ready for a possible reversal. The resulting Bearish U-Turn set-up is the basis for a potential SHORT play, so get ready to enter a position in SMTC on a further decline to our trigger at 24.03. Set a 2.04 trailing stop, tightening to 1.02 on a 1.86 gain. SMTC ended the latest session at 25.22. Earnings Report Date: Nov 28, 2023. Beta: 1.70. Market-Cap: 1.618B. 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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