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September 5, 2023 - The RightLine Report
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NOTES FROM THE EDITOR
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Using Charts To Boost Your Trading Skills
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"QUICK LIST"
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Stock 09/05 09/05 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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TRU 80.18 -0.95 82.1 77.4 4.7/2.35 2.76
TSAT 20.01 0.55 20.46 18.72 1.74/0.87 2.82
AFRM 21.93 0.06 22.79 20.95 1.84/0.92 1.72
FSLY 24.01 -0.09 24.47 22.88 1.59/0.8 2.48
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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US stocks, after a 2.5% gain last week, closed lower today, while bond yields and the dollar saw increases. There were no major market catalysts, but attention was drawn to weaker economic data from overseas. China's services Purchasing Managers' Index (PMI) for August fell below expectations, indicating that stimulus efforts haven't yet led to a consumption rebound. Similarly, the final releases of eurozone PMIs were revised lower, suggesting downward pressure on growth. The energy sector led the way as oil prices climbed, with Saudi Arabia announcing an extension of its voluntary production cuts until year-end. WTI prices settled at a ten-month high of $87. The relative resilience of the US economy is bolstering the dollar. Over the past three months, the economic data has pleasantly surprised, in contrast to the weakening trend in China and much of Europe. Consequently, the US dollar index has appreciated by approximately 5% since mid-July, while US equities have continued to outperform year-to-date despite having slightly lagged since the market bottom in October 2022. Implications from the labor market's loosening are worth noting. Job security and income gains have been pivotal for this year's robust economy. However, the tight labor market and substantial wage growth have raised concerns for the Fed in its effort to rein in inflation. Recent data indicate a gradual cooling of the labor market, consistent with a soft-landing scenario. Job openings have declined in six of the past seven months, narrowing the gap with the number of unemployed. We believe this loss in momentum will help moderate wage growth and solidify expectations that the Fed will refrain from further rate hikes. Sep 4, 2023 Sep 5, 2023
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Dow Closed 0 34,641.97 -195.74
Nasdaq Closed 0 14,020.95 -10.86
S&P 500 Closed 0 4,496.83 -18.94
NYSE Volume 0 3.53B
NYSE Advancers 0 645
NYSE Decliners 0 2,294
Nasdaq Volume 0 4.39B
Nasdaq Advancers 0 1,337
Nasdaq Decliners 0 3,001
New Highs/Lows
08/29 08/30 08/31 09/01 09/04 09/05
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NYSE New Highs 65 98 78 116 0 64
NYSE New Lows 25 18 20 29 0 86
Nasdaq New Highs 69 83 90 101 0 77
Nasdaq New Lows 130 81 104 95 0 157
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TRADER'S TIP:
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TRADER'S TIP: "Trading the Adrenaline Rush" Every trader knows how exciting "live" trading can be. We've all felt that surge of adrenaline when entering or exiting a position - it comes with the territory. Just remember that too much excitement can cloud judgment, and therefore increase risk. It pays to stay relaxed and follow your trading plan to the "T". If you get stopped out, so what? It's all part of the job. When you include Risk Control tactics into your strategy, you intelligently protect your capital. Risk management is essential to success. All professional traders take small losses on a regular basis, but they never let a small loss turn into a large one. On the other hand, amateurs usually ignore Risk Control and resort to wishful thinking instead. In doing so, they damage their odds of winning over the long haul. Trading requires a certain amount of discipline and a repetitive routine, just like any other job. It can be extremely gratifying and profitable for those who control their emotions, but thrill seekers usually watch their accounts quickly evaporate. **************************
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 - 4496.83 September 5, 2023 52-Week High: 4607.07 52-Week Low: 3491.58 Daily Trend: UP Weekly trend: DOWN Weekly Pivot Levels Resistance 3: 4743.20 Resistance 2: 4616.93 Resistance 1: 4566.35 Pivot: 4490.66 Support 1: 4440.08 Support 2: 4364.39 Support 3: 4238.12 https://www.prorightline.com/rlch/090523SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): Monday, September 04, 2023: 04-Sep Labor Day holiday Tuesday, September 05, 2023: 05-Sep 10:00 am Factory orders Wednesday, September 06, 2023: 06-Sep 8:30 am U.S. trade deficit 06-Sep 10:00 am ISM services 06-Sep 2:00 pm Fed Beige Book Thursday, September 07, 2023: 07-Sep 8:30 am Initial jobless claims 07-Sep 8:30 am U.S. productivity (revision) Friday, September 08, 2023: 08-Sep 10:00 am Wholesale inventories 08-Sep 3:00 pm Consumer credit 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: "Planning Entries" Typically when our analysts determine entry points, they evaluate setups from more than one perspective. They usually look at a relatively longer-term chart when determining the underlying trend, then use shorter-term analysis to figure out where in that longer trend the stock currently is. For example, if a stock sits mired in a downtrend, but is nearing the lower edge of the trading range, we anticipate a potential long bounce entry yet use a relatively tight stop since the prevailing winds are pressuring prices downward. It's a matter of integrating BOTH perspectives when formulating a plan. ***********************************
STOCKS COVERED IN THIS ISSUE
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INDUSTRIALS SECTOR TransUnion (TRU: Industrials/Consulting Services) - SQUEEZE PLAY. The struggle between buyers and sellers has resulted in TRU'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 82.1 and a SELL order at 77.4. Regardless of which order is triggered, cancel the other one and follow your entry with a 4.7 trailing stop. Tighten the stop to 2.35 once you have a 2.76 gain. TRU closed Tuesday at 80.18. Earnings Report Date: Oct 23, 2023. Beta: 1.36. Market-Cap: 15.499B. Optionable. TECHNOLOGY SECTOR Telesat Corporation (TSAT: Technology/Communication Equipment) - 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 TSAT. A move to the upside will trigger our BUY entry at 20.46, while a drop to 18.72 will trigger our SELL short entry. Follow your position with a 1.74 trailing stop. Tighten the stop to 0.87 once you have a 2.82 gain. TSAT closed Tuesday at 20.01. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 1.007B. Optionable. Affirm Holdings, Inc. (AFRM: Technology/Software-Infrastructure) - 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 AFRM's case we will enter a BUY should it reach the 22.79 level, or a SELL short trade if it drops to 20.95. As usual a trailing stop is essential, 1.84 which should be tightened to 0.92 on a 1.72 gain. AFRM closed Tuesday at 21.93. Earnings Report Date: Nov 06, 2023. Beta: 3.12. Market-Cap: 6.564B. Optionable. Fastly, Inc. (FSLY: Technology/Software-Application) - SQUEEZE PLAY. Trader indecision has put FSLY 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 24.47 and a SELL short entry at 22.88. Now it's up to FSLY to show us which entry will be filled. Once the trade is underway place a 1.59 trailing stop, which can be tightened to 0.8 after you achieve a 2.48 profit. FSLY closed on Tuesday at 24.01. Earnings Report Date: Oct 31, 2023. Beta: 1.26. Market-Cap: 3.102B. 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
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. |