SYS Research – Daily Report – Wednesday, October 4, 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.

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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

A Glimpse into Promising Setups

Following a tumultuous two-day sell-off in the bond market, the yield on the benchmark U.S. Treasury 10-year bond took a step back, shedding 6 basis points to reach 4.73%. It’s a moment of respite, but the market’s pulse continues to quicken.

The S&P 500 exhibited an aura of uncertainty throughout the day, only to close with a commendable 0.8% gain. In parallel, the Dow Jones Industrial Average charted an ascent of 127.17 points, equating to a 0.4% rise. Meanwhile, the tech-laden Nasdaq Composite seized the spotlight, posting an impressive surge of approximately 1.4%, its momentum picking up pace as the final hour of the trading session unfolded, driven by the gravitational pull of descending rates.

Amidst this backdrop, some of the setups that have recently garnered considerable attention continue to exhibit outperformance, as elucidated in today’s report. Despite the abysmal readings from Wednesday, market breadth exhibited a modestly positive demeanor. Nevertheless, it’s essential to maintain a balanced perspective.

The stock market remains tethered to the whims of the 10-year Treasury yield, which persists in its near-vertical ascent. In this intriguing landscape, names like Tesla, Google, and Costco stand out as prime examples of crafting a watchlist brimming with the best setups. These stocks are poised to break out or ascend further above their moving averages if the market can rally from its current oversold state.

However, it’s wise to be prepared for both scenarios. If the market chooses to keep the trend lower, holding beneath its moving averages, these standout names may relinquish their gains, even if they continue to outshine the S&P 500 benchmark. In times of volatility, adaptability and a watchful eye on the bond market are the trader’s best allies.

Pay special attention to the Bitcoin setup. Currently, the price action is tightly squeezed between the moving averages, with the 200-day moving average acting as a strong resistance level. I refer to this type of setup as a coiled spring being compressed by the 200-day moving average. If the price manages to break through, it could unleash significant upward momentum, like a spring-loaded jack-in-the-box once the lid is removed.

As we dive into the daily setups, envision yourself as a keen observer, akin to a Wall Street broker with binoculars ready. The goal is to assemble a watchlist with robust setups demonstrating relative strength. By doing so, you position yourself for success, ready to capitalize when the market takes its next turn upward. Today is a good example where the indexes have mildly rebounded from their lows, and some of the setups we’ve been tracking are poised to break out from their pattern or trend to new highs.

US Daily Setups

BSY – Bentley Systems, Inc.

Bentley Systems is currently making an effort to move higher from the continuation pattern that was recently highlighted.

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

 

COST – Costco Wholesale Corp.

Costco continues to set up near its 52-week highs. Monitor for a continuation of the uptrend.

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

 

LYTS – LSI Industries, Inc.

LSI Industries is persistently consolidating below its 52-week highs. Monitor closely for the potential continuation of the uptrend.

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

 

PCAR – PACCAR, Inc.

PACCAR is currently making an effort to trend higher from the apex of a continuation pattern positioned just below new highs.

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

 

TSLA – Tesla Inc.

Tesla is persistently rising from the lower trendline of the continuation pattern that we’ve been highlighting. Pay attention to the PPO momentum indicator as it attempts to turn higher from the zero line. Keep a watchful eye out for a potential breakout.

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

 

WMT – Walmart Inc.

Walmart is currently striving to continue the uptrend as its price action reclaims the 50-day moving average.

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

 

Canadian Daily Setups

CMG.TO – Computer Modelling Group Ltd.

Computer Modelling Group is currently attempting to trend higher above the 21-day exponential moving average following its bull flag breakout.

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

 

COST.NE – Costco Wholesale Corp – Canadian Depository Receipt

Costco continues to set up near its 52-week highs. Monitor for a continuation of the uptrend.

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

 

DFY.TO – Definity Financial Corp.

Definity Financial has been appearing on momentum scans in the last few days. Price action is consolidating in the form of a continuation pattern. Monitor for a potential breakout.

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

 

GOOG.NE – Alphabet Inc – Canadian Depository Receipt

Alphabet is currently maintaining its position along the 50-day moving average.

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

 

MVRS.NE – Meta Platforms Inc – Canadian Depository Receipt

Meta is currently consolidating at the narrow apex of a continuation pattern.

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

 

TSLA.NE – Tesla Inc. – Canadian Depository Receipt

Tesla is persistently rising from the lower trendline of the continuation pattern that we’ve been highlighting. Pay attention to the PPO momentum indicator as it attempts to turn higher from the zero line. Keep a watchful eye out for a potential breakout.

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

 

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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