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.
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SYS Daily Report
The stock market crashed around on Tuesday following a lackluster earnings report from Oracle. This report fueled selling pressure in the technology sector, resulting in the S&P 500 giving back 0.6% as price action continued to fluctuate within the established trendlines.
As the Talking Heads continue to focus on predicting a recession, today, I’ll assert that we don’t care. Our uranium and oil sector themes persist in showing no correlation. They outperform both on a relative and absolute basis as they march forward. The uranium sector theme received another boost today with bullish news from Nigeria, resulting in price increases. As the spot price surged, it exchanged glances with its buddy, the crude oil futures, and asked, ‘How are you doing?’ Crude oil responded, ‘I’m doing well, just like yourself,’ as dollar bills continued to flow out of the oil pump. This scene evokes the old saying: ‘Black Gold, Texas Tea,’ reiterated by a member in the workspace the other day.
Trends remain our allies, with prices consistently trending above the moving averages until they don’t. This approach enables us to seize opportunities with upward momentum while defining risk using a trailing stop-loss order. The sector themes also serve as a compelling example of how stocks can soar much higher than anyone could predict, and conversely, they can plummet far lower than anyone could imagine. This further underscores the importance of well-timed entries and properly adjusted trailing stop-loss orders to safeguard against unexpected market shifts. Such a strategy empowers us to react to price action while disregarding the distractions and opinions of those who claim superior knowledge.
Before we delve into today’s setups, let’s take a closer look at Oracle. It serves as a stark reminder of the gap risks associated with holding through an earnings date, which can be likened to a gamble. This lesson is one I’ve personally learned the hard way, and it’s a topic I consistently emphasized in the daily setups during my time at Osprey Strategic.
In this regard, holding onto a stock through an earnings report can be a risky endeavor, and I strongly advise against it unless you are a sophisticated investor who can employ a call strategy to mitigate potential downside risk. Oracle’s case also serves as a prime example of why proper position sizing is absolutely crucial at any given time. Even if you have a stop-loss in place, if your position is too large, it won’t shield you from significant downward gaps.
Now, let’s get into the daily setups!
US Daily Setups
CCJ – Cameco Corp.
Cameco serves as a compelling illustration of the potency of a base breakout. As two of our trusted maxims remind us: ‘The bigger the base, the higher into space,’ and ‘Trend will be your friend until it’s not.’ Cameco consistently maintains its upward trajectory, trending above the upward-sloping 10-week moving average. This moving average acts as a dynamic trendline and can be utilized to define potential downside risk, making it an ideal level for a trailing stop-loss order.
LINK TO CHART – https://schrts.co/MhmNKwQu
DNN – Denison Mines Corp.
Denison Mines continues to trend higher following its base breakout and is now setting up just below its recent highs.
LINK TO CHART – https://schrts.co/eiUStbNs
OIH – VanEck Vectors Oil Services ETF
The VanEck Vectors Oil Services ETF consistently achieves new highs following its base breakout, a topic we have been discussing and a chart we’ve been highlighting.
LINK TO CHART – https://schrts.co/jPfsdzzj
OXY – Occidental Petroleum Corp.
Occidental Petroleum, a Warren Buffet stock, is displaying indications of a potential breakout from a substantial base that has consolidated to the apex of a continuation pattern.
LINK TO CHART – https://schrts.co/fynEbvZC
SLB – Schlumberger Ltd.
The Schlumberger setup maintains its momentum, consistently reaching new highs since its base breakout.
LINK TO CHART – https://schrts.co/nEmzCkCC
VAL – Valaris Ltd.
Valaris is positioning itself on the right side of a substantial basing pattern, situated just below its all-time highs. Monitor this closely for potential signs of upside momentum that may result in a breakout.
LINK TO CHART – https://schrts.co/xdfNFFDU
Canadian Daily Setups
BTE.TO – Baytex Energy Corp.
The Baytex Energy setup maintains its upward trajectory following the breakout from the bottoming base we previously highlighted, this time evolving into a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/igikkbrC
FCU.TO – Fission Uranium Corp.
Fission Uranium witnesses yet another day of exceptionally high trading volume following its breakout from the bull flag continuation pattern.
LINK TO CHART – https://schrts.co/KGBMIJYB
MDA.TO – MDA Ltd.
The MDA setup maintains its upward momentum, steadily climbing following the 52-week high breakout potential we highlighted last week.
LINK TO CHART – https://schrts.co/MnBMkEdn
NVA.TO – NuVista Energy Ltd.
NuVista Energy continues to experience upward momentum stemming from its continuation pattern.
LINK TO CHART – https://schrts.co/yDbehFCI
U/UN.TO – Sprott Physical Uranium Trust
The Sprott Physical Uranium Trust is currently consolidating within a bull flag continuation pattern situated just below its recent highs. Keep a close watch for potential breakout signals.
LINK TO CHART – https://schrts.co/uydUwgyg
VET.TO – Vermilion Energy Inc.
Vermilion Energy remains on the verge of a potential breakout from its bottoming base.
LINK TO CHART – https://schrts.co/auJvwZVk
US Scanner Results
Click on the CandleGlance chart to expand it to full size. If you discover a chart that aligns with your criteria or interests, you can effortlessly save it to your watchlist on StockCharts.com for further analysis and tracking.
Canadian Scanner Results
Click on the CandleGlance chart to expand it to full size. If you discover a chart that aligns with your criteria or interests, you can effortlessly save it to your watchlist on StockCharts.com for further analysis and tracking.
