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
Sometimes, wisdom lies in adopting a ‘sit and observe’ stance, and today, it serves as a perfect illustration of this principle. As I emphasized in previous newsletters, my market philosophy hinges on ‘expecting the expected.’ Today’s market volatility only reinforces the significance of this approach. It reminds us that knowing when to act and when to observe is a vital skill in navigating the ever-changing landscape of market volatility.
As I’ve explained in previous newsletters, I approach the market with the mindset of expecting the expected. Once one understands the range of probable outcomes, one can formulate a plan that is not influenced by the opinions and biases of others or external noise. Since the first Setyourstop report, I’ve highlighted the horizontal resistance line on the major indexes. This simple, horizontal resistance line allows one to anticipate a range of expected outcomes, simplifying it to a binary event. That line will act as resistance until the moment it doesn’t. So far, this expected outcome has proven valid as the market failed at the underside of that resistance line and continued to pull back over the last two days, driven by rising yields and the US dollar.
$SPX – S&P 500 Large Cap Index
I want to monitor how the price interacts with the moving averages closely. As evident from the chart, historically, these moving averages have played a significant role as support and resistance lines when momentum is in play.
When the price consistently remains above the moving averages during an uptrend, it tends to signal a certain expected outcome as they act as support. Conversely, in a downtrend, they function as resistance until that pivotal moment when they don’t. This dynamic creates a clear red or green light scenario.
Such an approach allows for the development of a well-defined risk management plan, aligning with the principles of the CMT (Chartered Market Technician), a discipline that emphasizes reacting to price action over making predictions.
At this stage, I understand that many of my colleagues have a penchant for making predictions, attempting to call market tops and predict the next significant crash. However, the reality is that nobody possesses the ability to foresee precisely what will unfold in the market, and I choose to steer clear of such predictions. To me, they are no different from attempting to predict the weather. Occasionally, they may prove accurate, and when they do, they tend to bask in the limelight. But when they miss the mark, their earlier predictions often go unacknowledged.
Calling a market top is an exceptionally challenging endeavor because, in reality, there can only be one true top. Most of the time, prices continue to trend or move sideways. We have ample evidence of this, as I’ve observed more people attempting to predict a top throughout this entire uptrend compared to those actively participating in it. The truth is, many were attempting to call a top even before the uptrend had initiated.
This phenomenon is indeed prevalent. The historical precedent of September has already introduced bias, whether justifiable or not. Genuine skill lies in acknowledging this historical context, exercising caution, and remaining prepared to react if the expected outcome deviates. The essence is to stay focused and shield oneself from external biases and distractions.
This is precisely where the importance of monitoring the strongest stocks with the most promising setups comes into play. It enables one to keep high-probability setups within their sights. This approach safeguards against hasty decisions influenced by the opinions of others, which, historically, have seldom proven accurate. When the market turns, one will be ready to act.
$TNX – CBOE 10-Year US Treasury Yield
With all that said, it has become imperative to maintain a watchful eye on the movements in the bond market and the 10-year Treasury. The stock market experienced a noticeable downturn following the release of robust economic data. The ISM services index for August impressively exceeded expectations, boasting a reading of 54.5, well ahead of the anticipated 52.4 and a notable increase from July’s 52.7. The immediate consequence of this positive economic news was a less-than-rosy reaction from bond investors. A wave of selling engulfed long-dated U.S. Treasury bonds, causing the yield on the benchmark 10-year note to surge, reaching as high as 4.30% before settling at 4.29%, marking a 2-basis point increase. Notably, the third quarter has seen the 10-year yield rise by as much as 55 basis points. As alluded to in yesterday’s report, an impending breakout from this chart could have significant implications across various asset classes and continue to put downside pressure on stocks.
The TNX, also known as the 10-Year Treasury Yield, is a key benchmark interest rate used in the financial markets. It represents the yield on the U.S. government’s 10-year Treasury note. Investors often monitor the TNX because it provides insights into the broader economic conditions and can influence various financial markets, including stocks. When the TNX rises, it can put downward pressure on stock prices as higher yields on bonds become more attractive relative to stocks. Conversely, when the TNX falls, it can have the opposite effect, potentially boosting stock prices. It’s an important indicator for investors and economists to gauge market sentiment and economic expectations. The TNX chart you’re referring to may not directly display the percentage number. As an example, when you see 42.90 on this chart, it represents a yield of 4.29%.
US Daily Setups
Now, let’s shift our focus to the daily setups, where an interesting theme emerges. Oil service companies are demonstrating relative strength, bucking the broader market trends as they strive to break out from substantial basing patterns. This underscores the importance of staying attuned to the overall market climate while also being ready to observe and capitalize on potential opportunities. While some are engrossed in predicting market indexes and calling tops, these setups provide an alternative viewpoint. If you’ve been keeping up with the daily setups, you’ll likely recognize these tickers.
BKR – Baker Hughes Company
After breaking out from a basing pattern, Baker Hughes has spent the past month and a half consolidating just below its 52-week highs. Currently, price action is making an effort to establish an upward trend from this pattern. Keep a close eye on it for signs of a continuation of this trend.
LINK TO CHART – https://schrts.co/AHtcWudx
IBKR – Interactive Brokers Group, Inc.
Interactive Brokers is currently in the process of digesting its recent breakout, with price consolidation occurring just below new highs. Be vigilant for any signs pointing to the potential resurgence of upside momentum.
LINK TO CHART – https://schrts.co/ZBYqVnbJ
OIH – VanEck Vectors Oil Services ETF
The VanEck Vectors Oil Services ETF is making an endeavor to reach new 52-week highs, stemming from a substantial basing pattern. Closely monitor this ETF for any indications of a potential continuation in this trend.
LINK TO CHART – https://schrts.co/HCtFitQq
OII – Oceaneering Intl, Inc.
Oceaneering has just pushed to a fresh 52-week high as price action seeks to establish an upward trend from a substantial basing pattern. Keep a keen eye out for any indications that could signal a potential increase in upside momentum.
LINK TO CHART – https://schrts.co/gBqGDkXW
PERI – Perion Network Ltd.
Perion Network is currently making an effort to break out from the coil of a continuation triangle. It’s worth noting the presence of large volume by price bars, indicating accumulation throughout the pattern. Keep a close watch for any potential breakout.
LINK TO CHART – https://schrts.co/CqTmmgYn
SLB – Schlumberger Ltd.
Schlumberger seems to be on the cusp of breaking out from a multi-month basing pattern. Be vigilant for any signs of an uptick in upside momentum.
LINK TO CHART – https://schrts.co/wjxHdynC
XPRO – Expro Group Holdings NV
Expro Group is positioned on the right side of a significant basing pattern, and price action is currently making an effort to reach new highs. Keep a close eye out for any signs of increased upside momentum that might lead to a breakout.
LINK TO CHART – https://schrts.co/fpKmnuMF
Canadian Daily Setups
AFN.TO – Ag Growth International Inc.
Ag Growth is positioned just below the upper trendline of a substantial multi-month consolidation/continuation pattern, which sits beneath new all-time highs. Keep a close eye out for any potential breakout.
LINK TO CHART – https://schrts.co/PzGFGuhr
BEI/UN.TO – Boardwalk Equities, Inc.
Boardwalk Equities has just trended to a new all-time high, having successfully overcome all resistance levels. Keep an eye out for a potential continuation in upside momentum.
LINK TO CHART – https://schrts.co/iPAsTMNw
DRX.TO – ADF Group, Inc.
ADF Group is positioned just below its 52-week highs, and there are signs of relative strength breaking out. Keep a watch for indications of potential upside momentum.
LINK TO CHART – https://schrts.co/HvNVKqBc
FTT.TO – Finning Intl, Inc.
Finning is approaching a resistance zone situated below new highs. Stay attentive for a potential continuation of the current trend.
LINK TO CHART – https://schrts.co/fdjfmzDH
PKI.TO – Parkland Fuel Corp.
Parkland Fuel is consistently displaying relative strength, with price action surging to a 52-week high, accompanied by significant trading volume.
LINK TO CHART – https://schrts.co/gWFIkpuB
SGD.V – Snowline Gold Corp.
Snowline Gold appears to be arranged in a bull flag continuation pattern. Keep a close eye on it for potential signs of upside momentum.
LINK TO CHART – https://schrts.co/IMkzzzTU
US Scanner Results
Click on the CandleGlance chart to view it in full size, and if you find a chart that fits your criteria or interests, you can easily save it to your watchlist for further analysis and tracking.
Canadian Scanner Results
Click on the CandleGlance chart to view it in full size, and if you find a chart that fits your criteria or interests, you can easily save it to your watchlist for further analysis and tracking.
