SYS Daily Report
The stock market wrapped up with a mixed performance on Thursday as investors digested the inflation report. Shifting gears to Friday, Wall Street will turn its attention to the August job reports from the labor department.
In my approach to trading and investing, I stick to the motto of “expect the expected.” But it’s tough to know what to expect until you truly understand an expected outcome. Back when I was starting and learning about systematic trading, I had questions and concerns influenced by what I saw in the media. I went to a mentor seeking guidance. His response was pretty direct: “What? Are you an economist?” Then, he advised me to trust my system. Those words stuck with me.
The challenge was that, at that time, I didn’t have a system I could trust. That’s where things have changed. Now armed with a reliable process and a trading system that has a high likelihood of success, I can closely watch the market and respond smartly to what’s happening. This contrasts what we often see on business TV—people arguing about their opinions rather than what’s unfolding.
As I roll out the SetYourStop Research Report, I aim to guide you through the systematic trading process. The ultimate objective is to align everyone’s understanding, enabling them to recognize precisely what they should be seeking when assessing the daily setups. In line with the age-old adage, “Give a man a fish, and he’ll go hungry again tomorrow; teach him to catch a fish, and you’ll enrich him for a lifetime.”
After that long-winded introduction, some of you might be wondering where this is all heading. Well, the answer traces back to the chart I shared of the S&P 500 yesterday. I pointed out that the price action was trading beneath a horizontal resistance level, setting the stage for an expected outcome. And indeed, when you examine the chart below, you’ll notice that the horizontal resistance line precisely halted the price action. Once you have an expected outcome, it significantly aids decision-making when evaluating setups I share daily.
Now, the next step is to monitor how the market responds to the August job reports from the labor department, scheduled for tomorrow morning. At this moment, the chart presents a binary scenario. Either the price will surge above the horizontal resistance line, and the trend will resume, or ideally, the price will further consolidate above the moving averages. However, if the price action were to breach below the moving averages, it would invalidate any bullish outlook.
SPY – SPDR S&P 500 ETF
QQQ – Invesco QQQ Trust (NASDAQ ETF)
The NASDAQ’s setup mirrors that of the S&P 500, following the same sequence of expected outcomes.
The US Daily Setups
ADBE – Adobe Systems, Inc.
Adobe Systems is breaking out from its consolidation area to reach new 52-week highs.
ANET – Arista Networks, Inc.
Arista Networks is reaching a new all-time high after the whipsawed setup following the Nvidia earnings report.
BWMX – Betterware de Mexico S.A.P.I. de C.V
Betterware de Mexico is breaking out to new 52-week highs with a surge in bullish volume.
CRWD – CrowdStrike Holdings, Inc.
CrowdStrike is consolidating below horizontal resistance on the right side of a significant bottom base. Keep an eye out for a potential breakout.
MTCH – Match Group, Inc
Match Group positions itself on the right side of a substantial bottoming base while the PPO momentum indicator attempts to curl higher off the zero line. Keep an eye out for an increase in upside momentum.
SMCI – Super Micro Computer, Inc
Super Micro Computer is positioned below a significant horizontal resistance line, forming a continuation wedge pattern. Notably, the PPO momentum indicator is attempting a bullish cross.
SMH – VanEck Vectors Semiconductor ETF
VanEck Vectors Semiconductor ETF is in a consolidation phase below its 52-week highs, coinciding with the PPO momentum indicator’s attempt to cross above the zero line. Keep an eye out for any indications of potential upside momentum.
TDW – Tidewater, Inc.
Tidewater is starting to show upward movement from a continuation pennant pattern situated below new highs.
USO – United States Oil Fund, LP
United States Oil Fund displays highly bullish behavior with a notably bullish setup. Keep an eye on the potential for continued upside momentum, which could positively affect all our energy-related stocks. Over the weekend, I will be creating an energy watchlist encompassing both Canadian and US sectors. These lists will be available for download in PDF format or export in an XLS file.
XLE – Energy Select Sector SPDR Fund
Energy Select Sector SPDR Fund is currently positioning itself on the right side of a substantial base. Keep a lookout for potential upside momentum, which could drive the price to new 52-week highs.
YETI – Yeti Holdings Inc.
Yeti Holdings is experiencing ongoing upside momentum as its price rises and achieves a new 52-week high.
The Canadian Daily Setups
AMZN.NE – Amazon.com Inc. – Canadian Depository Receipt
Amazon is currently attempting to break out from a bull flag continuation pattern situated below the 52-week highs.
AOI.TO – Africa Oil Corp.
Africa Oil displays signs of upside momentum as price action attempts to trend higher from its continuation pattern.
BTE.TO – Baytex Energy Corp.
Baytex Energy continues to set up below horizontal resistance. Keep an eye out for a potential breakout.
ESI.TO – Ensign Energy Services, Inc.
Ensign Energy Services seems to be positioned below a significant resistance line, accompanied by a surge in bullish volume. Watch for a potential breakout.
KEL.TO – Kelt Exploration Ltd.
Kelt Exploration appears to be gaining upward momentum from the bull flag continuation pattern that we’ve been highlighting.
MDA.TO – MDA Ltd.
MDA is attempting to move higher from a bull flag continuation pattern, following its earnings gap.
NEO.TO – Neo Performance Materials Inc.
Neo Performance Materials continues to appear on momentum scans as its price action endeavors to trend higher from a substantial bottom wedge formation.
RBY.TO – Rubellite Energy Inc.
The Rubellite Energy setup continues to pose a potential breakout from its bottoming base.
SNC.TO – SNC-Lavalin Group, Inc.
SNC-Lavalin is set up for a potential breakout to new highs.
U/UN.TO – Sprott Physical Uranium Trust
Sprott Physical Uranium Trust continues to gradually rise, with price action attempting a new high breakout.
US Watchlist Scanner Results
Canadian Scanner Results
Notice: The Daily Report is provided for informational purposes only and is 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 firstname.lastname@example.org 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.