SYS Research – Daily Report – Tuesday, September 26, 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 Zoom meeting to address your specific requirements and provide you with the guidance you need.

SYS Daily Report

Market Correction Intensifies as Yields Soar

This Tuesday, the stock market correction deepened its grip on the major indexes, erasing any vestiges of Monday’s modest gains. Meanwhile, the 10-year Treasury yield continued its ascent, scaling long-term heights. The Dow Jones Industrial Average led the retreat, marking a decline of 1.1%, while the S&P 500 index mirrored the downturn with a 1.5% fall, inching closer to its pivotal 200-day moving average. Not to be outdone, the Nasdaq Composite tumbled by 1.6%.

Indexes

In the midst of this turbulence, the 10-year Treasury yield surged by 2 basis points to reach 4.56%, a level not witnessed since October 2007. The prevailing narrative remains unchanged: a stronger dollar and rising rates are the prevailing themes of our market landscape. Elevated yields translate directly into increased borrowing costs for both businesses and consumers, leaving investors wary about the sustainability of the ongoing economic expansion. Furthermore, the robust dollar threatens companies heavily reliant on overseas revenue streams.

10-year Treasury yield

US Dollar

Remarkably, this uptrend in yields does not reflect the Federal Reserve’s actions. Shorter-term yields have been relatively flat in recent days, with the odds of another Fed rate hike diminishing. It is the longer-term outlook that appears to be reshaping market sentiment. Technology stocks, often valued for their anticipated future earnings, find themselves particularly exposed, as these profits tend to lose their luster when compared to the improved risk-free returns offered by government bonds maturing over time.

Tech Heavy Nasdaq 100 Index

Amidst the volatility, the energy sector managed to hold its ground, slipping a mere 0.5%. Yet, this resilience is not without its concerns, as it parallels yet another surge in oil prices that has kept investors on their toes.

Light Crude Oil

Navigating the Precious Metal Charts

The luster of precious metal charts has dimmed as the 100-day moving average rejects a potentially promising sector theme. I often receive inquiries from readers about front-running chart setups. Here’s a prime example of the risks associated with front-running a technical signal.

To this day, I remember the valuable lesson my mentor taught me: “Not yet,” he would say, emphasizing the significance of the 100-day moving average. This moving average holds a pivotal role as it represents the 20-week moving average on the weekly chart, effectively serving as the middle Bollinger band. Frequently, this moving average acts as both a support and resistance level.

As we examine the chart before us, we can clearly observe how this moving average acts as a ceiling, capping price action and thwarting any attempts to break through. This brings us back to viewing stocks as a binary event akin to a red-light-green-light scenario. Despite the potential signs of momentum brewing in the charts, they never quite provide that signal.

Adding the 100-day moving average alongside the 20-week moving average to your charts can serve as a valuable tool in making binary decisions.

Gold

Reading the Market Signals: What to Look Out for

In these turbulent times, keeping an eye on a few key factors is essential. First, many indicators suggest that the stock market is currently oversold. This could mean we might see a short-term rebound in the near future. However, we’ll need to see a change in the direction of Treasury yields for a more substantial recovery. Whether they start going down or at least stabilize for a while, that’s what we’re looking for.

So, here’s the name of the game: patience. Investors should be cautious and look for consistent signs of market strength over several days. Pay special attention to stocks that have shown strength during recent market chaos; they could be the ones leading the next market rally. As you keep a close watch, make sure your watchlists are up-to-date, and be ready for both upward and downward movements in the days ahead.

US Daily Setups

AMGN – Amgen, Inc.

Amgen is currently making an effort to trend higher after a minor bull flag retest of the recent breakout line, with price action consistently remaining above the 21-exponential day moving average.

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

 

GNE – Genie Energy Ltd.

Genie Energy is positioning itself near the apex of a multi-month consolidation triangle. Monitor closely for the potential of upside momentum that could result in a breakout.

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

 

HDSN – Hudson Technologies, Inc.

As indicated in yesterday’s setups report, Hudson Technologies stands out as one of the few bright spots in the current market. Price action is currently breaking out to reach a new 52-week high.

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

 

HQY – HealthEquity, Inc.

HealthEquity is exhibiting an upward trend above its moving averages, with price action breaking above a key breakout line, accompanied by a recent surge in bullish volume.

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

 

INSW – International Seaways, Inc.

International Seaways is another standout chart, demonstrating relative strength as seen in yesterday’s setups, and it’s currently making an attempt to trend higher from its continuation pattern.

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

 

UAN – CVR Partners LP

CVR Partners has caught the attention of the momentum scanner today, with price action positioning near the apex of a significant consolidation triangle. It’s advisable to include this chart on your watchlist and monitor it closely for the potential of upside momentum that could lead to a breakout. As the old saying goes, ‘the bigger the base, the higher in the space.’

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

 

Canadian Daily Setups

ATH.TO – Athabasca Oil Sands Corp.

Athabasca Oil Sands is consolidating just below its 52-week highs, with price action remaining above the 21-exponential day moving average. Monitor for a potential continuation of the uptrend.

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

 

CMG.TO – Computer Modelling Group Ltd.

Computer Modelling Group has successfully tested the 50-day moving average within the context of a bull flag continuation pattern while displaying a bullish volume profile.

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

 

CNQ.TO – Canadian Natural Resources Ltd.

Canadian Natural Resources has recently surged higher after a successful retest of the 50-day moving average. Currently, price action is approaching a notable area of resistance. Add this chart to your watchlist and closely monitor it for a potential continuation of the uptrend.

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

 

MEG.TO – MEG Energy Corp.

MEG Energy has retested the base breakout of the triangle formation, taking the shape of a bull flag continuation pattern. The price action is currently positioned below new 52-week highs.

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

 

THNC.TO – Thinkific Labs Inc.

Thinkific Labs is a thinly traded stock that recently gained attention on momentum scans. Price action is steadily rising from a significant falling wedge continuation pattern, accompanied by a notable increase in volume.

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

 

URB/A.TO – Urbana Corp.

Urbana is another thinly traded stock that has recently drawn attention to momentum scans. Price action is making an attempt to trend higher from a bull flag continuation pattern.

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

 

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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