SYS Research – Daily Report – Wednesday, November 1, 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.

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SYS Daily Report

 

Market Surge Amidst Federal Reserve’s Steady Hand

Stocks experienced a notable surge on Wednesday following the Federal Reserve’s widely anticipated decision to maintain unchanged interest rates. In a contest between the allure of low-risk government bonds and the allure of higher-risk equities, the central bank’s stance proved to be the catalyst for an upswing in the stock market during the trading session’s final 90 minutes. Evidently, investors appeared to heave a collective sigh of relief in response to the Federal Reserve’s verdict.

Nasdaq 100 ETF

The 10-year U.S. Treasury note saw its yield decline by 0.16 percentage points, settling at 4.78%. This reduction in yields acted as a tailwind for the stock market, propelling various stock indices to higher ground.

10-Year US Treasury Yield

The Dow Jones Industrial Average recorded a gain of 0.7%, equivalent to 222 points, while the tech-heavy Nasdaq Composite registered a substantial 1.6% increase. Simultaneously, the S&P 500 demonstrated an impressive ascent of 1.1%, with notable leadership emerging from the information technology and communication services sectors.

Indexes

Market sentiment holds a crucial role, as uptrends typically thrive on what’s commonly referred to as the “wall of worry.” This wall of worry tends to hold a reservoir of cash on the sidelines, which eventually flows into the market as it climbs higher. This dynamic compels money managers to chase performance. A recent survey conducted by Investors Intelligence among newsletter editors reveals a decline in the bullish ratio, dropping below 50% to 42.9%. This shift towards growing pessimism among market pundits indicates that they are increasing their cash holdings and adopting a more cautious stance. As the market gathers further momentum, it’s possible that these market participants may transition into future buyers, bolstering the market’s upward trajectory.

Several of our recent setups illustrate the notion that the best-performing stocks and the strongest chart patterns often take the lead. While many pundits attempt to forecast the behavior of broader market indexes, these chart patterns persist. When market indexes finally bottom, these chart patterns often accelerate, prompting those on the sidelines to chase. Most of these chart patterns and setups tend to repeat themselves with different stock tickers. To identify these opportunities, it’s essential to look for characteristics such as relative outperformance or relative strength. Is the stock moving sideways as the market trends lower? Is it maintaining its position above key moving averages or building a new base? These characteristics serve as valuable clues that the most astute and significant institutional investors are accumulating positions.

ServiceNow serves as an excellent illustration of a setup that has consistently appeared in scan results and been featured in our daily setups during uncertain market conditions. When the market began displaying indications of stabilization, this particular chart pattern initiated a breakout. This showcases the significance of having a plan based on technical outcomes rather than randomly selecting stocks in the hope of timing the market’s bottom.

ServiceNow

The SSIH continues to curl higher from a higher low, while the PPO sets up to perform a bullish cross.

SSIH

Additionally, it’s crucial to keep a close eye on Bitcoin-related charts. The price of Bitcoin appears to be on the cusp of breaking out from a flagging pattern. While the cryptocurrency sector is known for its volatility, it often outperforms when the conditions are favorable. Staying vigilant in this sector can potentially offer investors significant opportunities in the market.

Bitcoin

US Daily Setups

AAPL – Apple, Inc.

Apple is surging higher off the lower trendline of a falling wedge continuation pattern. Keep a close eye on this for the continuation of upside strength, which may lead to a potential breakout.

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

 

COCO – Vita Coco Company Inc.

Vita Coco Company is surging higher with bullish volume. Be vigilant and monitor for the continuation of the uptrend.

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

 

COIN – Coinbase Global Inc.

Coinbase continues to set up in a wedge pattern. Keep an eye on this for the potential of a breakout.

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

 

FTDR – frontdoor, inc.

frontdoor is gapping higher following a bullish earnings report. Monitor for the continuation of upside strength.

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

 

GFF – Griffon Corp.

Griffon is currently set up in the form of a continuation wedge. Keep a watchful eye for the potential breakout.

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

 

MSTR – MicroStrategy Inc.

MicroStrategy continues to flag with Bitcoin potentially breaking out. Keep a close watch for the continuation of the uptrend.

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

 

NFLX – Netflix, Inc.

Netflix is threatening to break out from a continuation wedge. Keep a close eye on this potential breakout.

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

 

RIOT – Riot Platforms, Inc.

Riot is currently set up below horizontal resistance. Monitor for the potential of a breakout.

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

 

Canadian Daily Setups

AAPL.NE – Apple Inc – Canadian Depository Receipt

Apple is surging higher off the lower trendline of a falling wedge continuation pattern. Keep a close eye on this for the continuation of upside strength, which may lead to a potential breakout.

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

 

BTCC.TO – Purpose Bitcoin ETF

Purpose Bitcoin ETF is a physical Bitcoin ETF. Monitor it for the continuation of the uptrend, especially with the price of Bitcoin potentially breaking out.

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

 

GLXY.TO – Galaxy Digital Holdings Ltd.

Galaxy Digital continues to show signs of potentially breaking out from its bottoming base.

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

 

HUT.TO – Hut 8 Mining Corp

Hut 8 Mining is in a bull flag retest of the recent breakout. Monitor for signs of upside strength.

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

 

MSFT.NE – Microsoft Corporation – Canadian Depository Receipt

Microsoft continues to threaten to break out from its continuation wedge. Keep an eye on this potential breakout.

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

 

SJ.TO – Stella-Jones, Inc.

Stella-Jones is currently threatening a new high breakout. Keep a close watch on this development.

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

 

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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