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: 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
Navigating the Stormy Seas of Volatility
As I often say, I like to live by the term “expect the expected.” As mentioned in the July 25 daily report, August, September, and October have historically been challenging for the stock market due to high volatility. With numerous variables leading up to the US presidential election this year, there seems to be a higher probability than normal for heightened volatility. The recent development of President Biden dropping out, leaving Kamala Harris leading in the polls, the Federal Reserve’s interest rate decisions, and various economic data and earnings reports all contribute to this uncertainty.
This week has certainly met expectations. Yesterday, the market rebounded following remarks by Fed Chair Powell, despite appearing precarious the day before. As highlighted in last night’s report, the day following a Federal Reserve meeting often reverses the previous day’s action, and this time was no exception. Fed Chief Jerome Powell strongly indicated that rate cuts are imminent. However, there is concern among investors that policymakers may be acting too late, causing the market to whipsaw lower today following soft economic data.
Adding to the complexity, a jobs report will be released in the morning, which could shake things up at the open. A “too cold” report would heighten fears about rate cuts arriving too late, while a “too hot” report could drive bond yields higher over concerns that a September rate cut may be off the table. If unemployment comes in higher than expected, it could spark additional panic.
Furthermore, tonight’s earnings reports showed Amazon missing expectations while Apple exceeded them. Index futures are currently slightly lower, but this could change at the open.
To make matters worse, stocks tumbled today after weak economic data fueled fears that the Federal Reserve won’t cut interest rates in time to avoid a recession. As usual, the Fed appears to be behind the curve, with other countries already making cuts; even Canada has reduced rates twice. This soft economic data sent the 10-year Treasury yield tumbling below 4%, as it now seems the head and shoulders topping pattern we’ve been monitoring is coming to fruition. The 10-year Treasury yield dived 13 basis points to 3.98%, dropping below the 4% level for the first time since early February. This decline could set up the TLT (iShares 20+ Year Treasury Bond ETF) for a potential trade, especially if the Fed has to cut rates and the 10-year yield falls below the neckline of its pattern.
10-Year US Treasury Yield
iShares 20+ Year Treasury Bond ETF
The Russell 2000 and many non-tech sectors have given back a significant portion of July’s sharp gains, albeit a large chunk in just one day. The small-cap Russell 2000 index tumbled 3.2%, its worst day since February 13. The Dow Jones Industrial Average fell nearly 500 points, or 1.2%, failing at the resistance line highlighted last night. The S&P 500 declined 1.4% but still held on to the gap support line, while the Nasdaq Composite dropped 2.3%, with today’s candle bouncing off both the resistance and support lines. Despite solid gains on Wednesday, expectations of continued upside were met with a sharp decline in the major stock indexes, with trading volume surpassing the previous day’s gains. Tomorrow morning will be telling.
Russell 2000 (ETF) – Daily Chart
Dow Jones Industrial Average – Daily Chart
S&P 500 – Daily Chart
Nasdaq – Daily Chart
With heightened volatility expected, there is an increased emphasis on risk management. This volatility has also made it challenging to identify daily setups. It’s important to clarify that my role is to share charts daily, but this does not imply a recommendation to buy. The charts indicate the potential for upside momentum and should be added to a watchlist if they align with one’s criteria and rules.
Even seasoned professionals struggle to make gains in such a market environment, often facing significant challenges. One of the most crucial skills in trading or investing is knowing when to be patient and when to act. As Kenny Rogers said, “You’ve got to know when to hold ’em, know when to fold ’em.” As we proceed with the daily setups, remember Mike Bellafiore’s advice: “Focus on protecting what you have, not adding what you don’t need.”
US Daily Setups
ABBV – AbbVie Inc.
AbbVie continues to show relative strength as it makes a new 52-week high in this volatile market tape.
LINK TO CHART – https://schrts.co/fdXTNimx
COR – Cencora Inc.
Cencora appears to be setting up on the right side of a significant multi-month consolidation pattern. Monitor for any potential breakout signals.
LINK TO CHART – https://schrts.co/jquUXzRZ
KGC – Kinross Gold Corp.
Kinross Gold appears to be setting up as a potential bullish flag continuation pattern.
LINK TO CHART – https://schrts.co/sDzkMBku
OSCR – Oscar Health Inc.
Oscar Health is attempting to move higher from a continuation wedge. Monitor for any potential breakout signals above the horizontal resistance line.
LINK TO CHART – https://schrts.co/cIvhrkrI
XLU – Utilities Select Sector SPDR Fund
The Utilities Select Sector SPDR Fund ETF continues to break out from the recently highlighted continuation pattern.
LINK TO CHART – https://schrts.co/NxJEMQGM
XLV – Health Care Select Sector SPDR Fund
The Health Care Select Sector SPDR Fund ETF is breaking out from the recently highlighted consolidation area, with the price action trending above its upward-sloping moving average.
LINK TO CHART – https://schrts.co/YejFREtj
Canadian Daily Setups
CPX.TO – Capital Power Corp.
The Capital Power setup continues to show strength, reaching a new 52-week high.
LINK TO CHART – https://schrts.co/DPbuXSNU
K.TO – Kinross Gold Corp.
Kinross Gold is setting up in the form of a potential bullish continuation pattern.
LINK TO CHART – https://schrts.co/SVvfFQGU
KRR.TO – Karora Resources Inc.
Karora Resources is setting up in the form of a potential bullish continuation pattern.
LINK TO CHART – https://schrts.co/fHAZBsva
NGEN.V – NervGen Pharma Corp
NervGen Pharma is setting up in the form of a potential bullish flag continuation pattern.
LINK TO CHART – https://schrts.co/JhQmNksV
NGT.TO – Newmont Goldcorp Corporation
Newmont Goldcorp is moving higher from the recently highlighted bullish flag continuation pattern.
LINK TO CHART – https://schrts.co/GezqaJTf
TCW.TO – Trican Well Service Ltd.
Trican Well Service has had a strong trend following its triangle breakout. It is one of the few stocks showing absolute and relative strength as the price action touches a new 52-week closing high.
LINK TO CHART – https://schrts.co/sKwjbFtN
To conclude our report, we thank you for your engagement and insights. Your feedback is valuable, and we encourage you to share your recommendations. Stay attentive to the Daily Setups, the Workspace, and the Watchlists for emerging opportunities. Additionally, be sure to explore the scanner result PDFs provided below. Until next time, happy trading!
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.
EXPORT – US Watchlist Scan – 2024-08-01
A, ABBV, ABT, ACGL, ACIW, ADUS, AEE, AEP, AES, AFL, AGI, AJG, ALKT, ALL, ALNY, AMGN, AMK, AMT, APD, ASND, ATO, ATR, AVB, AWK, AXTA, AZN, AZO, BALL, BIO, BMY, BR, BRO, BSX, BV, CACI, CAH, CAVA, CBOE, CCEP, CCI, CHRW, CL, CLH, CMI, CMPR, CMS, CNC, CNXN, COKE, COLL, COO, COR, CPB, CPT, CRTO, CTLT, CTSH, CVNA, CWAN, D, DGX, DHR, DLR, DTE, DUK, EBAY, ED, EFX, EHC, EIX, ENLC, EQIX, EQR, ES, ESOA, ESS, ETR, EVRG, EXC, EXPD, EZPW, FE, FMC, FNF, FRPT, FRT, GFL, GIL, GILD, GIS, GSK, GVA, HAS, HOLX, HRL, HSIC, HSY, HWKN, IDCC, IHI, INFY, INVH, IP, IQV, IRM, ISRG, ITCI, ITRI, JHG, JNJ, JNPR, K, KDP, KGC, KHC, KIM, KNTK, KO, KR, LH, LHX, LLY, LMT, LNC, LNT, LTH, MAA, MCD, MCK, MCO, MCY, MDT, META, MKC, MMC, MO, MSCI, MUSA, NBIX, NEE, NEM, NEU, NI, NOC, NTRA, NVS, O, ORLY, OSCR, PCG, PEP, PFE, PG, PGR, PLD, PM, PNTG, PNW, PODD, POST, PPC, PPL, PRMW, PSA, PTGX, RACE, REG, REGN, RMD, RSG, RSI, RUSHA, RYAN, SBAC, SFM, SJM, SO, SPGI, SRE, SRPT, STE, SYK, T, TECH, TEVA, TFX, TJX, TKO, TMDX, TMO, TMUS, TPB, TRGP, TRN, TTEK, TYL, UDR, UHS, ULS, USAP, VICI, VLTO, VRSN, VRTX, VTR, VZ, WAT, WCN, WEC, WELL, WM, WMB, WMT, WTW, WY, XEL, XLC, XLP, XLRE, XLU, XLV, YUM, ZETA, ZTS
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.
EXPORT – Canadian Scanner Results – 2024-08-01
ACO/X.TO, ACQ.TO, AFM.V, AGI.TO, AI.TO, AIM.TO, ALA.TO, ARTG.V, ASTL.TO, AX/UN.TO, BBU/UN.TO, BCE.TO, BDI.TO, BEI/UN.TO, BLN.TO, CAR/UN.TO, CCA.TO, CHE/UN.TO, CIG.TO, CIGI.TO, CMG.TO, CPLF.TO, CPX.TO, CRR/UN.TO, CU.TO, DFN/PA.TO, DOL.TO, DPM.TO, DR.TO, EMP/A.TO, ENB.TO, FCR/UN.TO, FTS.TO, GDC.TO, GDI.TO, GFL.TO, GIL.TO, GRT/UN.TO, HOM/U.TO, HOM/UN.TO, HR/UN.TO, III.TO, K.TO, KMP/UN.TO, KRR.TO, LLY.NE, MCDS.NE, MDNA.TO, MEEC.V, META.NE, MFI.TO, MNT.TO, MSA.TO, MVRS.NE, NFI.TO, NGEN.V, NGEX.TO, NGT.TO, NVEI.TO, NWC.TO, OSI.V, PFE.NE, PHYS.TO, PLZ/UN.TO, PMZ/UN.TO, PRMW.TO, PRQ.TO, PSD.TO, PTK.V, QBR/B.TO, SGD.V, SIA.TO, STEP.TO, STLR.TO, T.TO, TA.TO, TCL/A.TO, TCW.TO, TF.TO, TNZ.TO, TOI.V, TRP.TO, URB/A.TO, VERS.NE, VHI.TO, VNP.TO, WCN.TO, WEX.V, WILD.TO, WMT.NE, XAU.TO, ZTL.NE
