SYS Research – Daily Report – Monday, November 6, 2023

Notice: The Daily Setups are provided for informational purposes only and are not intended as a stock-picking service. The charts and information provided are intended to aid research and analysis and should only be used as indicators. They should not be considered as a direct trigger to buy or sell any security. The creator assumes no responsibility for any actions readers take and strongly advises each individual to fully understand the risks and potential consequences before making any investment decisions. Please note that the charts shared are not intended as signals to buy or sell but as a tool to add to your watchlist and analyze according to your trading ability. Remember that not all charts will result in buy or sell actions at any time.

Just a friendly reminder: We update the sector chartists every weekend. We highly recommend that you take some time to browse and create your watchlist. Please pay close attention to the Daily Setups and Workspace scan results for potential future additions to stay ahead of the game.

If you’re facing challenges understanding the Daily Setups or need help crafting a trading strategy, don’t hesitate to ask for assistance. You can contact me via email at info@setyourstop.com or reach me through the Workspace. Let’s schedule a meeting to address your specific requirements and provide you with the guidance you need.

Sample Trading System

The following trading system is presented as an educational example and should not be interpreted as financial advice. Past performance does not guarantee future results, and trading involves inherent risks. Please consult with a qualified financial advisor before implementing any trading strategies.

SYS Daily Report

 

Stocks Grapple with Resistance and Bond Yield Trends

Stocks managed to secure modest gains on Monday, extending the positive momentum from the previous week. However, they continue to grapple with a stubborn area of resistance, as highlighted in our weekend report. A potential driving force for the market in the coming days may be the movements in long-term bond yields, particularly with no major news catalysts on the horizon. It’s worth noting that growth-oriented stocks are particularly sensitive to rising rates, given their susceptibility to the erosion of future profit values. It is crucial to adhere to the system rules to ensure that the stop-loss order not only safeguards profits but also effectively prevents downside risk.

I incorporated charts of both the S&P 500 and the Nasdaq, along with the 100-day moving average, which provides a visual representation of the resistance levels. The 100-day moving average plays a pivotal role in shaping the market’s future trajectory, presenting a binary outcome. If prices break out above this moving average, it signals a continuation of the uptrend. However, if they fail to do so, the recent surge from the lows may fizzle out.

This moving average offers a clear expected outcome, facilitating the development of a well-defined trading plan. It eliminates uncertainty, enabling traders to respond to real-time market developments rather than relying on predictions influenced by biases.

S&P 500

Nasdaq Composite

The stock market exhibited limited breadth on Monday, with declining stocks outnumbering advancing ones. The Nasdaq faced a 5-3 ratio of falling to rising stocks, while on the New York Stock Exchange, the losers dominated by a margin of more than 3-to-1. These uninspiring results were evident in the scanner PDFs, making it a challenging day to identify new trading opportunities.

Breadth

Conversely, the SSIH witnessed a significant surge today as funds flowed into industry groups beneath the surface. This development may serve as a leading indicator, akin to a canary in the coal mine, hinting at a potentially bullish outcome regarding the 100-day moving average on the indexes. The situation remains fluid, so continued monitoring is suggested. Stay tuned for further developments.

SSIH

In terms of market performance, the S&P 500 managed to eke out a 0.2% gain, while the Dow Jones Industrial Average saw a modest uptick of 35 points, equivalent to a 0.1% increase. Notably, the tech-heavy Nasdaq Composite exhibited resilience by recording a 0.3% increase. This marked its seventh consecutive session of gains, the longest winning streak since January.

Indexes

Shifting our attention to the bond market, the yield on the 10-year Treasury note rose to 4.662% on Monday, up from the 4.557% observed on Friday. This uptick in yields adds to the overall market dynamics and is a critical factor influencing investors’ decisions in the days ahead.

10-Year US Treasury Yield

US Daily Setups

DELL – Dell Technologies, Inc.

Dell is breaking out from an area of consolidation. Take note of the large volume by price bar, suggesting major accumulation throughout the pattern.

LINK TO CHART – https://schrts.co/FnqZtMez

 

 

NVO – Novo Nordisk A S

Novo Nordisk is consolidating below 52-week highs. Monitor for the potential continuation of the uptrend.

LINK TO CHART – https://schrts.co/YYgivDGs

 

OLLI – Ollie’s Bargain Outlet Holdings Inc.

Ollie’s Bargain Outlet is set up for a potential 52-week high breakout.

LINK TO CHART – https://schrts.co/YYgivDGs

 

RYAAY – Ryanair Holdings PLC

Ryanair is attempting to break out from a falling channel continuation pattern following a bullish earnings report.

LINK TO CHART – https://schrts.co/qudBphmC

 

USAP – Universal Stainless & Alloy Products, Inc.

The Universal Stainless & Alloy Products setup continues to show upside strength. Monitor for a potential breakout above the horizontal resistance line.

LINK TO CHART – https://schrts.co/WrBNfXya

 

XLK – Technology Select Sector SPDR Fund

The Technology Select Sector SPDR Fund ETF is attempting to break out from a significant continuation wedge.

LINK TO CHART – https://schrts.co/WrBNfXya

 

Canadian Daily Setups

CWB.TO – Canadian Western Bank

Canadian Western Bank is setting up below a 52-week high. Monitor for the potential of a breakout.

LINK TO CHART – https://schrts.co/wRkJSSEF

 

CXB.TO – Calibre Mining Corp.

Calibre Mining appears to be setting up below the upper trendline and horizontal resistance of a significant continuation wedge. Monitor for potential continuation of the uptrend.

LINK TO CHART – https://schrts.co/KwZjxGeu

 

DOL.TO – Dollarama Inc.

Dollarama is attempting to trend to new all-time highs from a continuation pattern.

LINK TO CHART – https://schrts.co/KwZjxGeu

 

DSG.TO – The Descartes Systems Group, Inc.

The Descartes Systems is pushing up against the upper trendline and horizontal resistance of a falling channel. Monitor for a potential breakout.

LINK TO CHART – https://schrts.co/KwZjxGeu

 

ENGH.TO – Enghouse Systems Ltd.

Enghouse Systems continues to show strength as it builds upon the bottom base that was recently highlighted.

LINK TO CHART – https://schrts.co/zQTmuKst

 

GIB/A.TO – CGI Group, Inc.

CGI Group is attempting to break out from a significant consolidation/continuation pattern.

LINK TO CHART – https://schrts.co/zQTmuKst

 

US Scanner Results

Click on the CandleGlance chart to view it in full size. Find a chart that matches your criteria or interests. You can easily save it to your watchlist on StockCharts.com for further analysis and tracking or copy and paste the ticker list into your chart provider.

 

Canadian Scanner Results

Click on the CandleGlance chart to view it in full size. Find a chart that matches your criteria or interests. You can easily save it to your watchlist on StockCharts.com for further analysis and tracking or copy and paste the ticker list into your chart provider.

 

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