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SYS Daily Report
Risk Aversion Deepens as Leadership Narrows and Inverse Themes Assert Themselves
Macro Overview
The trading session unfolded within a clear risk-averse backdrop, marked by synchronized weakness across equities, digital assets, and commodities. Economic data throughout the day reinforced caution, with labor market updates reflecting rising strain and adding to an already fragile tone. As the session progressed, capital gravitated toward defensive positioning while volatility remained elevated, reinforcing a market environment defined more by capital preservation than by opportunity expansion.
The macro landscape reflected growing sensitivity to policy expectations and large-scale capital allocation trends. Bonds attracted steady interest as equities softened, while the US dollar firmed and weighed on commodity pricing. The cumulative effect was a market defined by compression, rotation, and selective participation rather than broad conviction.
10 Year US Treasury Yield – Daily Chart
US Dollar – Daily Chart
Breadth & Major Index Charts
Market internals deteriorated steadily through the day, confirming that selling pressure extended beyond isolated pockets. Participation weakened as decliners outpaced advancers across exchanges, and leadership narrowed further into the close. Small cap equities lagged persistently, signaling reduced speculative appetite and reinforcing a defensive posture beneath the surface.
Major indexes closed lower with limited recovery attempts, and the overall structure reflected distribution rather than consolidation. The tone across index charts suggested a market struggling to stabilize participation, with rotation favoring protection over expansion.
The Red Light Green Light Breadth System
S&P 500 – Daily Chart
Nasdaq – Daily Chart
Dow Jones Industrial Average – Daily Chart
Russell 2000 ETF – Daily Chart
TSX Recap
Canadian equities echoed the global risk-averse tone, with the TSX pressured by its heavy exposure to resources and cyclicals. Materials were among the weakest areas as precious metals reversed sharply, while energy also moved lower alongside softer crude oil. The index reflected broad-based selling rather than isolated weakness, underscoring the Canadian market’s sensitivity to commodity volatility.
Notable stock-specific moves contributed to the tone. Canada Goose (GOOS.TO) fell sharply following earnings, while Thomson Reuters (TRI.TO) declined despite higher reported revenue, extending recent weakness. In contrast, Celestica (CLS.TO) offered a pocket of relative strength within technology, standing out against an otherwise cautious tape. In materials, Barrick Mining (ABX.TO) weakened following corporate updates tied to its gold operations.
TSX – Daily Chart
Digital Assets Overview
Digital assets experienced pronounced downside volatility, moving in tandem with broader risk assets. Bitcoin (BTC) declined sharply and remained under sustained pressure throughout the session, while Ethereum (ETH) and Solana (SOL) followed with similar weakness. Selling pressure extended across major altcoins, with XRP (XRP) notably underperforming.
Crypto linked equities reflected this stress. Coinbase Global (COIN) remained under pressure amid regulatory headlines, while iShares Bitcoin Trust (IBIT) extended its decline as crypto exposure continued to unwind. Corporate balance sheet exposure to digital assets also resurfaced as a focal point, with Strategy (MSTR) reporting wider losses tied to its bitcoin holdings.
Bitcoin – Daily Chart
Ethereum – Daily Chart
Solana – Daily Chart
Commodity Watch
Commodities reversed lower in a broad sell-off that reinforced the deflationary tone of the session. Silver led the decline, with outsized volatility, while Gold also moved lower following recent volatility. Crude Oil softened as geopolitical risk premiums eased, adding pressure to energy equities.
Industrial metals also weakened, with Copper pulling back from recent strength. The broader commodity complex reflected a cooling of speculative interest rather than selective rotation. One exception emerged in agriculture, where Soybeans showed relative firmness. Within thematic resources, uranium-linked equities were tracked cautiously as they correlated with a broader risk-averse environment.
Crude Oil – Weekly Chart
Copper – Daily Chart
Gold – Daily Chart
Silver – Daily Chart
Uranium Theme – Global X Uranium ETF (URA)
Sector & Thematic Movers
Technology remained central to the session narrative, with selling pressure intensifying around large-scale capital spending themes. Software and data services continued to lag, extending an existing downswing. Consumer discretionary also weakened, while materials reflected the sharp reversal in precious metals.
Defensive positioning was evident beneath the surface, with consumer staples holding up better relative to the broader market. Thematic leadership shifted away from growth and speculation toward protection, mirroring the deterioration in breadth and the underperformance of small-cap equities.
Stock Movers
Single name action reflected heavy repricing tied to earnings and guidance updates. Alphabet (GOOGL) declined after updates on future capital spending, contributing to broader weakness across megacap technology. Microsoft (MSFT) and Amazon (AMZN) moved lower in sympathy, with additional post-close pressure in Amazon (AMZN). Palantir Technologies (PLTR) and Oracle (ORCL) also weakened, while Nvidia (NVDA) slipped amid broader semiconductor softness.
Outside technology, dispersion remained high. Estee Lauder (EL) fell sharply after issuing a weaker outlook, while Hershey (HSY) advanced on a stronger profit forecast. Tapestry (TPR) also moved higher following improved guidance. In healthcare services, Cardinal Health (CAH) stood out for its notable strength following earnings. Other notable moves included weakness in Snap (SNAP) and Ralph Lauren (RL), alongside relative resilience earlier in the session from Netflix (NFLX).
Options & Insider Flow
Options activity remained elevated, highlighting continued institutional engagement despite the defensive backdrop. Notable flow appeared in Coinbase Global (COIN), Energy Transfer (ET), Palantir Technologies (PLTR), Booking Holdings (BKNG), Axon Enterprise (AXON), PayPal (PYPL), Meta Platforms (META), Alphabet (GOOG), Ferrari (RACE), Strategy (MSTR), Salesforce (CRM), Sandisk (SNDK), Advanced Micro Devices (AMD), Arm Holdings (ARM), Tesla (TSLA), Duolingo (DUOL), PDD Holdings (PDD), Circle Internet Group (CRCL), Genius Sports (GENI), and Reddit (RDDT).
Unusual individual options activity highlighted focused positioning in Anterix (ATEX), Angi (ANGI), Microvast (MVST), and bearish positioning or hedging activity in Pfizer (PFE), TeraWulf (WULF), and Galaxy Digital (GLXY).
Insider activity showed continued selling across several large capitalization names, including Boeing (BA), Chubb (CB), Delta Air Lines (DAL), and M&T Bank (MTB), while Canadian insider buying remained active in Cardinal Energy (CJ.TO).
Small Cap Spotlight
Small-cap equities remained under consistent pressure, reinforcing the session’s defensive tone. Participation thinned further as selling intensified into the close, underscoring reduced risk tolerance. Isolated strength emerged following earnings in Phibro Animal Health (PAHC), but these moves remained exceptions rather than signals of broader stabilization.
Importantly, inverse exposure continued to validate its role within this environment. Several inverse ETFs highlighted in late January continued to perform well, including Defiance Daily Target 2X Short BMNR ETF (BMNZ), T Rex 2X Inverse MSTR ETF (MSTZ), Direxion Daily PLTR Bear ETF (PLTD), ProShares Short QQQ (PSQ), and Defiance Daily Target 2X Short RGTI ETF (RGTZ). Their continued strength aligned with deteriorating breadth and reinforced the importance of tactical downside exposure during periods of sustained volatility.
Conclusion
The session reflected a market firmly in risk management mode, with broad weakness, narrowing leadership, and persistent pressure on growth-oriented themes. Commodities reversed lower, digital assets remained under stress, and small caps continued to lag, reinforcing a defensive market structure. At the same time, the ongoing strength in select inverse ETFs highlights that downside and hedging themes remain relevant as volatility persists. Attention now shifts to whether participation can stabilize and leadership broaden, or whether defensive positioning and inverse exposure continue to define the near-term landscape.
“A stop is not optional. It is the cost of staying in the game.” — Bruce Kovner
Now, onto the daily setups.
US Daily Setups
BMNZ – Tidal Trust II – Defiance Daily Target 2X Short BMNR ETF
The Defiance 2X Short BMNR ETF demonstrates the value of keeping these ETFs on the radar and learning to trade them while managing overnight gap risk. It was first featured in the Slack workspace on January 29 and later in the daily report, with price action up 114% since.
CAH – Cardinal Health, Inc.
Cardinal Health is showing strength as it attempts to break out while the broader market sells off.
CASY – Caseys General Stores, Inc.
Casey’s General Stores is attempting to hold above its upward-sloping moving averages.
CRUS – Cirrus Logic, Inc.
Cirrus Logic is attempting to break out amid heightened market volatility.
HCA – HCA Healthcare, Inc.
HCA Healthcare appears to be positioning just below a new high. Monitor for a continuation of the uptrend.
MHO – M/I Homes, Inc.
M/I Homes appears to be setting up along a significant horizontal resistance line. Monitor for signs of upside momentum, as robust volume has been present over the past few days.
MSTZ – T-Rex 2X Inverse MSTR Daily Target ETF
The T-Rex 2X Inverse MSTR ETF is another example of how inverse ETFs can be tactically utilized once overnight gap risk is properly managed. This setup is now up roughly 75% since it was first highlighted on January 29.
PLTD – Direxion Daily PLTR Bear 1X Shares
The Direxion PLTR Bear 1X is another inverse setup that was shared on the 29th and is now attempting to break out.
PSQ – ProShares Short QQQ
The ProShares Short QQQ continues to perform well as a hedge and as a way to profit as the market breaks below support.
RGTZ – Defiance Daily Target 2x Short RGTI ETF
The Defiance 2X Short RGTI ETF is the gift that keeps on giving, as another setup highlighted back on January 29, when price action began breaking out above horizontal resistance, continues to perform well.
UHS – Universal Health Services – Class B
Universal Health Services is attempting to break out from a continuation pattern. Monitor to see whether price action can begin breaking back above the next resistance level.
LINK TO CHART – https://schrts.co/SeXANnsv
Canadian Daily Setups
ALA.TO – AltaGas Ltd.
AltaGas continues to perform since being highlighted two days ago, with price action now approaching a 52-week high.
EXE.TO – Extendicare Inc.
Extendicare continues to walk above its upward-sloping moving averages.
GRT/UN.TO – Granite Real Estate Investment Trust
Granite REIT continues to attempt a bullish flag breakout.
H.TO – Hydro One Limited
Hydro One is now attempting to break out from the continuation pattern recently highlighted.
KEY.TO – Keyera Corp
Keyera appears to be breaking out from a multi-month base.
NOA.TO – North American Construction Group Ltd
North American Construction continues to set up on the right side of a bottoming pattern.
REI/UN.TO – Riocan Real Estate Investment Trust
RioCan REIT is attempting to move higher from a bullish flag continuation pattern.
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
(Stocks are sorted to highlight those with the strongest momentum at the time of the scan)
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.
SMST, MSTZ, BTCZ, ETQ, SITM, FORM, PAHC, KLIC, ROAD, BLBD, ENSG, RRX, IDCC, LBRX, ATEN, IRD, TPR, CPAY, BITI, KGS, CAH, ITT, CNXN, HSY, ORN, ERAS, LNKS, MOLN, OHI, MTSI, WMS, COR, SIRI, ASX, PLTD, PATK, CLNE, LITE, RMR, AHCO, MCFT, WEBS, REKT, NHC, ATAT, DVA, SARK, OBT, SBRA, XPO, CENT, BGS, LASR, FLXS, ENLV, YUMC, CENTA, THR, VMD, AIBD, HCA, ALL, BMY, ZTO, VRE, CRUS, ASIC, LQDT, BKD, DY, UI, MSFD, MEC, GRDN, SHMD, AFL, HOFT, PACS, VIAV, GILT, PNTG, HTHT, GSK, AXIA, CRS, DK, POAS, TIGO, BOOT, NVST, COCO, MT, MKSI, BDC, HE, OCS, MDRX, VTR, DHC, COKE, FAF, UNFI, NWPX, AROC, CVEO, CFBK, MTZ, CSV, THC, EBR/B, TKR, LEA, CON, FRCOY, MTG, TIMB, ANDE, VIV, MWA, SFST, EZPW, DNOW, APEI, PWR, BVS, HNI, GVA, CMS, GILD, NOA, BAYRY, PINE, SPXC, BNL, ESE, NRP, MHO, ANIP, PTEN, DHT, CSCO, GLW, MOG/A, UE, ITUB, SILA, PLXS, MPWR, CINF, FIX, GRC, TRN, CFRUY, MCRI, ROL, TRV, CNA, CCS, CDNL, RNR, NGS, RUSHA, JOE, ACGL, FNF, MOD, JCI, WWD, ATI, SBS, HFWA, MCY, UFCS, QSR, HRI, SHG, ALLE, FNLC, PDM, CPA, ATNI, KN, EME, REG, SKM, LIND, KO, ALNT, LMT, MYRG, CBL, DLNG, SMTC, SEM, FR, L, TILE, WLFC, GLRE, MRK, STNG, CPK, RMD, WMB, TPC, KEP, MPLX, NTHI, OUT, SAFE, SKT, HTH, HIG, JNJ, TWN, HCSG, IMKTA, AMRX, BIOA, ITIC, WSFS, ZBIO, APG, TER, ERII, COST, AVO, ESAB, ADI, KBH, PLPC, FDP, HG, PG, PSMT, SMP, GHM, ITW, VIRT, TJX, CMCSA, NATR, SLAB, FER, WFRD, CME, SWK, PSTL, CBOE, DCO, PKOH, DTM, PRG, CVGW, DTE, UCTT, CVLG, TTC, ALPMY, NPO, MATV, TRP, BBN, RGR, BA, PM, BNPQY, FSS, TRST, BURL, ANL, LTM, MMM, PLD, CSL, EPAC, DOCN
Canadian Scanner Results
(Stocks are sorted to highlight those with the strongest momentum at the time of the scan)
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
TOC.CA, THM.V, TVK.TO, BZ.V, MEEC.V, OBRN.CA, EXE.TO, MATR.TO, RSI.TO, XTC.TO, NOA.TO, CTH.V, THNC.TO, ALA.TO, COST.NE, COST.TO, CFW.TO, CNR.TO, FTS.TO, TRP.TO, SIA.TO, NA.TO, MRU.TO, SOBO.TO, H.TO, CSH/UN.TO, BIP/UN.TO, ENS.TO, BNS.TO, KEY.TO, PFE.NE, PFE.TO, PZA.TO, REI/UN.TO, RAY/A.TO, SU.TO, CRR/UN.TO, RGSI.TO, ENB.TO, PSD.TO
