SYS Daily Report

Welcome to the inaugural edition of the SYS Research Daily Report. Firstly, I regret to inform you that, at this juncture, the SSI indicators developed by Greg will not be incorporated into SetYourStop. Greg employs a proprietary calculation for deriving these indicators. However, please rest assured that I will introduce my trend-following technique to identify index momentum. This technique bears a semblance to the SSI, involving moving averages alongside overbought and oversold indicators. These tools have significantly contributed to my success.

By adopting this approach, I streamline the process into a binary outcome, aiding me in sidestepping biases stemming from personal thoughts and emotions. This method has enabled me to capitalize on setups that heralded upward trends, even as the market remained flat leading up to its ascent earlier this year. I’ve outperformed by identifying stocks that exhibited technical signals and broke out to higher levels, while many professionals failed to outperform a passive index fund as they were preoccupied with breadth indicators. Furthermore, it sustained my engagement while breadth indicators remained stagnant or declined, in contrast to the ongoing rise of the indexes during an extended period earlier this year.

My philosophy revolves around spotting stocks that are showing signs of momentum or are on an upward trajectory, as opposed to merely delineating what’s amiss. The ultimate goal, as a professional, remains the outperformance of the benchmark, regardless of the quantity of active stocks. Below is a chart of the NASDAQ ETF illustrating the initial signal upon the cross and the market’s overbought indications, each time intimating a potential retreat to the moving average. The chart further illustrates that the moving average and trend endure until they cease, forming a red-light-green-light system. A green light is when the price is above the moving averages, while below signifies a red light. I’ve also highlighted the RSI configuration, advising caution upon reaching a certain level, as it implies a propensity for a retreat to the primary moving average.

I aim to abstain from forming opinions, instead concentrating on upholding a systematic approach. I react to technical signals and utilize moving averages as trailing stops to monitor momentum. This approach simplifies the process into a binary outcome. The price either breaches and trends above the moving averages, or it doesn’t. This assists me in evading biases forged from personal thoughts and emotions. While pundits debate in the media based on their thoughts and feelings, we can anchor ourselves in actual events.

Please take into account that this is purely for demonstration purposes. In the upcoming instances, the chart will be magnified and significantly neater. My intention here is to ensure everyone is aligned with the same understanding. Comparable to the SSI, when we’re in a green light phase, the most favorable setups often outperform.

QQQ – Invesco QQQ Trust

SPY – SPDR S&P 500 ETF

The S&P 500 is presently trading into a resistance zone, a pattern reminiscent of several setups following Tuesday’s robust performance. The August payroll data indicated a slowdown in the job market, a development that alleviated investor concerns. At present, all attention is riveted on the upcoming release of consumer economic data scheduled for Thursday, in addition to the anticipated job figures set to be unveiled on Friday.

It is noteworthy that trading volume experienced a decrease on both the NYSE and Nasdaq compared to the same timeframe on Tuesday. The robust market breadth witnessed on Tuesday marked a favorable advancement for the overall market. However, the current focus is on the aspiration for the price of the S&P 500 to surge above the horizontal resistance line without encountering a setback.

The moving averages seem to be aligning for a bullish cross signal, although it’s possible that the price might require some time to digest the recent upward movement. One could anticipate a potential pullback to the moving averages or the price consolidating just below the resistance line until the moving averages catch up. This strategic approach would allow it to accumulate enough power to build momentum before its next move. It is imperative to avoid any scenario where the price regresses below the moving averages.

The objective is to identify optimal setups that can guide market entry, coupled with the safeguard of a stop-loss mechanism for exit. When the system flashes a green light on the indexes, the most robust stocks will set up ahead of the broader market and experience significant surges when the market moves. Failing to adhere to these rules will consistently lead to a situation where one is chasing gaps, getting whipsawed, and missing out on prime entries.

 

The US Daily Setups

ACMR – ACM Research, Inc.

ACM Research is attempting to break out above resistance, accompanied by bullish volume.

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

 

GDYN – Grid Dynamics Holdings Inc.

Grid Dynamics continues to demonstrate positive behavior, with the price pushing higher from the bottoming base that we’ve been highlighting.

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

 

HURN – Huron Consulting Group Inc.

Huron Consulting is currently setting up just below new highs. Be watchful for a potential continuation of upside strength.

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

 

MELI – MercadoLibre Inc.

MercadoLibre is currently consolidating just below its 52-week highs within the structure of a cup base. Keep an eye out for a potential breakout.

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

 

NOG – Northern Oil and Gas, Inc.

Northern Oil and Gas is presently positioned in the form of a bull flag continuation pattern just below 52-week highs. Keep a lookout for a potential breakout.

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

 

OII – Oceaneering Intl, Inc.

Oceaneering is currently showing signs of potentially breaking out from a cup base.

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

 

PLTR – Palantir Technologies, Inc.

Palantir Technologies is poised for a potential breakout from a continuation pattern. Keep it on your watchlist.

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

 

UBER – Uber Technologies, Inc.

Uber Technologies is currently experiencing an upward push from its bull flag pattern.

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

 

URA – Global X Uranium ETF

The Global X Uranium ETF and the uranium sector are both showing continued upside strength.

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

 

The Canadian Daily Setups

BTE.TO – Baytex Energy Corp.

Baytex Energy is positioned on the favorable side of a bottoming base. Keep an eye out for a potential breakout.

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

 

CAE.TO – CAE, Inc.

CAE continues to display signs of a potential breakout.

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

 

EFR.TO – Energy Fuels, Inc.

Energy Fuels continues to exhibit strength, aligned with the performance of the uranium sector.

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

 

HWX.TO – Headwater Exploration Inc.

Headwater Exploration is currently positioned below a resistance line. Keep an eye out for a potential breakout.

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

 

KEL.TO – Kelt Exploration Ltd.

Kelt Exploration is currently flagging below horizontal resistance and new 52-week highs. Keep an eye out for a potential breakout.

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

 

NFI.TO – New Flyer Industries Inc.

New Flyer Industries continues to show potential for a breakout.

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

 

PKI.TO – Parkland Fuel Corp.

Parkland Fuel is currently showing potential for a breakout to reach a 52-week high.

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

 

QIPT.TO – Quipt Home Medical Corp.

Quipt Home Medical continues to push higher from the wedge pattern that we’ve been highlighting.

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

 

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 dwightgalusha@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.