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September 8, 2022 - The RightLine Report
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NOTES FROM THE EDITOR
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In today's age of instant information, technical traders have access to an endless variety of data to help them make decisions. Stock charts, while still combining the same basic features they always have, offer more and more indicators every year. Then there's the matter of deciding which intervals to use. At times it can seem daunting!
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"QUICK LIST"
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Stock 09/08 09/08 Buy Short Trailing Stops Gain
Symbol Price +/- Entry Entry Initial/Tighten Amount
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BYND 21.69 -0.27 22.26 20.44 1.82/0.91 6.72
CRT 20.66 0.21 21.38 19.56 1.82/0.91 2.02
DSGN 23.30 0.17 23.91 22.09 1.82/0.91 3.38
VERA 20.61 0.40 21.27 19.51 1.76/0.88 3.36
GDS 22.03 -0.98 22.75 21.22 1.53/0.77 2.72
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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Stocks were higher on Thursday after traders absorbed several key events, including comments from Federal Reserve Bank Chairman Jerome Powell in which he maintained a hawkish tone that showed his determination to reduce the painfully high inflation rate in the USA and the globe. In addition, the European Central Bank (ECB) raised its benchmark interest rates by 75 basis points, the biggest increase in its history. In light equities news, American Eagle Outfitters (AEO $11) fell short of quarterly profit forecasts and suspended its dividend, while McCormick & Company (MKC $79) lowered its full-year guidance due to the current inflationary environment. The economic calendar was similarly quiet, as consumer credit expanded less than projected and unemployment claims declined. The USD/dollar and gold finished lower, oil prices were up, as were treasury yields. Sep 7, 2022 Sep 8, 2022
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Dow 31,581.28 435.98 31,774.52 193.24
Nasdaq 11,791.90 246.99 11,862.13 70.23
S&P 500 3,979.87 71.68 4,006.18 26.31
NYSE Volume 3.93B 3.97B
NYSE Advancers 2,442 1,744
NYSE Decliners 764 1,431
Nasdaq Volume 4.47B 4.35B
Nasdaq Advancers 3,300 2,712
Nasdaq Decliners 1,280 1,833
New Highs/Lows
09/01 09/02 09/05 09/06 09/07 09/08
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NYSE New Highs 14 18 0 17 16 23
NYSE New Lows 252 101 0 222 141 101
Nasdaq New Highs 34 42 0 35 31 34
Nasdaq New Lows 425 217 0 398 291 200
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TRADER'S TIP:
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TRADER'S TIP: "Stick With One Method" Though exceptional brainpower isn't a requirement for trading, the ability to choose a method and stick with it is. Many traders jump quickly from one trading system to another, never spending enough time with a single approach to find out if it really works. We suggest selecting a method, consistently trade it for at least three months, measure the results and see how it performs. If it works well, stick with it. If it doesn't, then find out why, and fix or replace it. Keep in mind that most winning routines contain robust stock selection, risk management, and exit strategies - components included in the RightLine Report approach. **************************
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 - 4006.18 September 8, 2022 52-Week High: 4818.62 52-Week Low: 3636.85 Daily Trend: UP Weekly trend: UP Weekly Pivot Levels Resistance 3: 4282.31 Resistance 2: 4122.97 Resistance 1: 4023.61 Pivot: 3963.63 Support 1: 3864.27 Support 2: 3804.29 Support 3: 3644.95 https://www.prorightline.com/rlch/090822SPX.jpg--ECONOMIC REPORTS AND EVENTS (all times are Eastern): MONDAY, SEPT. 5 Labor Day holiday - None scheduled TUESDAY, SEPT. 6 9:45 am S&P U.S. services PMI (final) Aug 10 am ISM services index Aug WEDNESDAY, SEPT. 7 8 am Cleveland Fed President Loretta Mester speaks 8:30 am International trade balance July 2 pm Beige Book THURSDAY, SEPT. 8 8:30 am Initial jobless claims Sept 8:30 am Continuing jobless claims Aug 10 am Quarterly services 3 pm Consumer credit July FRIDAY, SEPT.9 10 am Wholesale inventories revision 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: "Know Before You Go" Before entering a trade, carefully plan "what you will do" and "when you will do it" once you are in the position. Actually, this is much more important than finding the "perfect" entry. And always include an exit plan for three possible scenarios: the trade moves favorably, unfavorably, or doesn't move at all. Be sure to include the specific exit price when planning stop-losses. When using the trailing stop method to lock in gains, make certain that you decide in advance at what point the trailing stop will be adjusted. ***********************************
STOCKS COVERED IN THIS ISSUE
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CONSUMER DEFENSIVE SECTOR Beyond Meat, Inc. (BYND: Consumer Defensive/Packaged Foods) - SQUEEZE PLAY. Thursday's narrow price range has created a potentially profitable setup in BYND, as sellers and buyers find themselves in a near tie for control of price direction. The next short-term trend could go either way, so prepare for a move out of the draw within the next day or so. Set a BUY entry at 22.26 and a SELL short entry at 20.44. Let BYND's price action determine your long or short entry. Once the order is filled, place a 1.82 trailing stop, and tighten it to 0.91 upon getting a 6.72 gain. BYND closed Thursday at 21.69. Earnings Report Date: Nov 08, 2022. Beta: 1.80. Market-Cap: 1.381B. Optionable. ENERGY SECTOR Cross Timbers Royalty Trust (CRT: Energy/Oil & Gas E&P) - SQUEEZE PLAY. Traders are feeling the pressure as CRT's intra-day price range on Thursday shrunk to the narrowest spread in over a week. The tension between buyers and sellers should provide enough pent-up engergy for a breakout move in the days ahead, so get ready to trade with the new trend. To achieve that, place a BUY entry at 21.38 and a SELL short entry at 19.56. CRT's price movement will decide which entry is filled. As soon as you're in the trade, enter a 1.82 trailing stop. Tighten it to 0.91 after you get a 2.02 gain. CRT closed Thursday at 20.66. Earnings Report Date: N/A. Beta: 0.65. Market-Cap: 123.96M. Not Optionable. HEALTHCARE SECTOR Design Therapeutics, Inc. (DSGN: Healthcare/Biotechnology) - SQUEEZE PLAY. Thursday's trading session left DSGN 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 23.91 and your SELL short trigger at 22.09. One of the orders will be triggered by upcoming price action. When your market order is filled, cancel the remaining trigger and enter a 1.82 trailing stop. Once you have a 3.38 profit, reduce the stop to 0.91. Earnings Report Date: Nov 07, 2022. Beta: N/A. Market-Cap: 1.3B. Optionable. Vera Therapeutics, Inc. (VERA: Healthcare/Biotechnology) - SQUEEZE PLAY. VERA is stuck in a Bull/Bear deadlock. Fortunately for traders this impasse should be resolved soon, with one side or the other taking control. We want to be positioned for a potential quick move up or down, so get ready to catch this train with a BUY entry at 21.27 and a SELL short entry at 19.51. Once your trade is filled, enter a 1.76 trailing stop. Tighten it to 0.88 after a 3.36 gain. VERA closed on Thursday at 20.61. Earnings Report Date: N/A. Beta: N/A. Market-Cap: 559.386M. Not Optionable. TECHNOLOGY SECTOR GDS Holdings Limited (GDS: Technology/Information Technology Services) - SQUEEZE PLAY. A look at GDS's daily chart shows what a price squeeze is all about. The constricted high-low daily trading range has produced a setup similar to a tightly coiled spring. Expect price to move sharply soon, with the direction yet to be determined. Let the upcoming market action resolve whether you will buy shares or sell short. To capture a move either way, place a BUY trigger at 22.75 and a SELL short trigger at 21.22. Once GDS shows which way it's headed, place your triggered entry order. As soon as your order is filled, follow with a trailing stop of 1.53 and tighten to 0.77 on a 2.72 gain. GDS closed Thursday at 22.03. Earnings Report Date: Nov 14, 2022. Beta: 0.76. Market-Cap: 4.374B. 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 ---------------- ------- -------- ------- ------ ------- 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!
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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. |