September 22, 2022 - The RightLine Report ********************************** NOTES FROM THE EDITOR **********************************
Wash Sales 101
*********************************** "QUICK LIST" *********************************** Stock 09/22 09/22 Buy Short Trailing Stops Gain Symbol Price +/- Entry Entry Initial/Tighten Amount ------ -------- -------- -------- -------- --------------- -------- ZUMZ 21.66 -0.63 22.47 20.99 1.48/0.74 2.38 WFRD 31.38 1.22 32.09 2.95/1.48 3.1 PLRX 20.53 -0.09 21.32 19.46 1.86/0.93 2.46 FATE 22.47 -1.00 23.37 21.24 2.13/1.07 3.66 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 stock indices were lower on Thursday following Wednesday's 75-basis point interest rate hike from the US Federal Reserve Bank. Central banks around the globe also took action, as the Swiss National Bank and Bank of England and both raised rates, while the Bank of Japan maintained its monetary policy and intervened in the currency markets for the first time in over 20 years in an attempt to stabilize the falling yen. In equities news, housing companies KB Home (KBH $27) and Lennar Corporation (LEN $77) both beat earnings estimates, thogh KB's revenues didn't meet forecasts. On the economic front, unemployment claims were lower than expected, leading indicators were down for the sixth month in a row, and regional manufacturing activity unexpectedly decelerated. Oil prices, gold, the USD/dollar and treasury yields all gained ground. Sep 21, 2022 Sep 22, 2022 -------------------- -------------------- Dow 30,183.78 -522.45 30,076.68 -107.10 Nasdaq 11,220.19 -204.86 11,066.81 -153.39 S&P 500 3,789.93 -66.00 3,757.99 -31.94 NYSE Volume 4.15B 4.31B NYSE Advancers 912 580 NYSE Decliners 2,301 2,671 Nasdaq Volume 4.54B 4.96B Nasdaq Advancers 1,295 968 Nasdaq Decliners 3,312 3,669 New Highs/Lows 09/15 09/16 09/19 09/20 09/21 09/22 -------------------------------------------- NYSE New Highs 18 13 15 13 22 10 NYSE New Lows 176 362 229 395 374 726 Nasdaq New Highs 25 26 42 29 36 25 Nasdaq New Lows 266 477 490 558 630 932 *********************************** TRADER'S TIP: *********************************** TRADER'S TIP: "Intuition" Intuition - we've all learned to rely on it in different areas of our lives. When it comes to trading the markets, trusting our intuition exclusively is a process that often leads to financial harm. As a rule of thumb, it's best to use your intuition to develop your methodology - not to decide when to enter or exit a trade. For example, you may find that you intuitively prefer to trade one type of trade instead of another. Following your intuition in this manner will often lead you to better setups, resulting in bigger profits. Intuition that causes you to fine tune and test your trading methods is much more effective than using it as an entry or exit strategy. ************************** 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 - 3757.99 September 22, 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/092222SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): FRIDAY, SEPT. 23 9:45 am S&P U.S. manufacturing PMI (flash) Sept 9:45 am S&P U.S. services PMI (flash) Sept 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: "Victory!" Regardless of what some "experts" have to say, trading isn't war. If you consider trading the same thing as combat, you may wind up being stressed, or even worse, hostile. Those who view trading as a matter of life and death usually take things very personally and tend to hold onto losses way too long. If you choose to use a military model for your trading approach, keep in mind that throughout history successful military leaders knew when to take a small loss on the battlefield. When outnumbered, they often retreated so they could return to fight another day. *********************************** STOCKS COVERED IN THIS ISSUE *********************************** CONSUMER CYCLICAL SECTOR Zumiez Inc. (ZUMZ: Consumer Cyclical/Apparel Retail) - SQUEEZE PLAY. ZUMZ traders on both sides of the fence are now locked in a head-to-head shootout. Thursday's price range was the narrowest in over a week, as neither Bears or Bulls have been able to clearly gain the upper hand. This gives us an opportunity to catch the next directional move with little risk of loss. To do this we'll place both a long and a short trigger with a BUY at 22.47 and a SELL short trigger at 20.99. When one of the orders is filled, cancel the remaining order and enter a 1.48 trailing stop. When you've reached a 2.38 paper profit, tighten the stop to 0.74. ZUMZ closed at 21.66 on Thursday. Earnings Report Date: Nov 30, 2022. Beta: 1.51. Market-Cap: 421.729M. Optionable. ENERGY SECTOR Weatherford International plc (WFRD: Energy/Oil & Gas Equipment & Services) - BULLISH BOUNCE. Another bullish bouncer, WFRD 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 WFRD reaches our entry trigger set at 32.09. Also place a 2.95 trailing stop which can be narrowed to 1.48 when you reach a 3.1 profit. WFRD closed Thursday at 31.38. Earnings Report Date: Oct 31, 2022. Beta: 2.61. Market-Cap: 2.214B. Optionable. HEALTHCARE SECTOR Pliant Therapeutics, Inc. (PLRX: Healthcare/Biotechnology) - 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. PLRX traders reached this state of stand-off on Thursday with the tightest range of the past seven days. You can take advantage of their efforts by placing a low risk BUY trigger at 21.32 and a SELL short trigger at 19.46. After one of the two orders is filled, cancel the un-triggered order and place a trailing stop at 1.86 which can be tightened to 0.93 on a 2.46 gain. PLRX closed Thursday at 20.53. Earnings Report Date: Nov 07, 2022. Beta: 1.47. Market-Cap: 1.096B. Optionable. Fate Therapeutics, Inc. (FATE: Healthcare/Biotechnology) - SQUEEZE PLAY. Sometimes when Bulls and Bears face off in the market arena for a typical day-long battle, there is no clear winner. This is evident when the daily price range contracts to an unusually narrow state. FATE found itself in this condition on Thursday when neither buyers or sellers were able to push ahead. This setup provides traders a chance to hop on board the next breakout - whether it's to the upside or down - with little risk of loss. To do this place a BUY order at 23.37 and a SELL short trigger at 21.24. When FATE moves outside of Thursday's range, one of the orders will be filled. Once you hold a position of shares, cancel the unfilled order and place a 2.13 trailing stop. After you've got a 3.66 profit, tighten the stop to 1.07. FATE closed at 22.47 on Thursday. Earnings Report Date: Nov 02, 2022. Beta: 1.67. Market-Cap: 2.18B. 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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