Notice: The weekend 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.
This is just a friendly reminder that it’s essential to monitor the Daily Setups and Workspace scan results, which can provide insights into potential future additions and help you stay ahead of the game.
If you’re having trouble understanding the Daily Setups or need help crafting a trading strategy, don’t hesitate to ask for assistance. You can email us 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.
Sample Trading System
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 – Weekend Edition
Nasdaq Plunges, Fueling Market Volatility
The week concluded on a grim note, marked by Nasdaq’s most dismal performance since 2022, which has been exacerbating the prevailing market volatility. An Israeli strike late Thursday prompted a fleeting surge in oil prices, unsettling investors ahead of Friday’s opening bell. As the week unwound, the stock market grappled with significant losses, witnessing the tech-heavy Nasdaq plummet by 5.5%. In tandem, the S&P 500 mirrored the decline with a 3.1% drop, while the Dow Jones Industrial Average managed only a marginal gain. Additionally, the small-cap Russell 2000 relinquished 2.8% during the same period. However, it’s worth noting that price action is currently forming a potential bullish flag, with the index retesting its 40-week (or 200-day moving average). With market sentiment remaining notably weak, investors should primarily hold cash due to the triggering of stop-loss orders in adherence to system rules. The prudent approach is patiently awaiting renewed strength in major indexes or continuing to monitor the best setups. The bottom line is, regardless of any narrative, the bearish PPO cross on the weekly charts that we’ve been monitoring has finally come to fruition after weeks of warning signals. When it was finally triggered, the price action resulted in a waterfall-type event, signaling a significant market downturn. The price action and market technicals suggest that this market faces more significant issues beyond concerns about a war.
Nasdaq – Weekly Chart
S&P 500 – Weekly Chart
Dow Jones Industrial Average – Weekly Chart
Russell 2000 (ETF) – Weekly Chart
Both the Nasdaq and the S&P 500 have endured declines for three consecutive weeks, a trend exacerbated by a robust U.S. economy fueling inflationary concerns and disrupting earlier expectations of Federal Reserve interest rate cuts. Nvidia’s 10% decline, triggered by its moving average crossing lower, serves as a stark example for adherents of our straightforward trading system rules, featured at the top of every report. The move below the moving averages should have prompted a stop-loss order following the cross lower. However, if one wasn’t already stopped out from the system rules, then the move below the 50-day moving average should have been the final line in the sand, putting investors into cash. Not only did the system rules trigger a stop-loss order, but they also activated a potential short trade entry for those who were able to react swiftly. Additionally, AI server manufacturer Super Micro Computer experienced a sharp decline on Friday after withholding preliminary results, amplifying apprehensions regarding AI demand in general. Regardless of their earnings report, or lack thereof, the same system rules applied as the chart is very similar to that of Nvidia.
Nvidia– Daily Chart
Next week is poised to maintain the market’s roller-coaster ride as investors await crucial earnings reports from key players such as Microsoft, Meta Platforms, Alphabet, Tesla, General Electric, ServiceNow, Chipotle Mexican Grill, Dexcom, and Caterpillar. While many short-term indicators currently signal oversold conditions, a rebound is not guaranteed. The outcome of upcoming earnings reports will be pivotal, with negative guidance likely to significantly impact respective sectors and the broader market, potentially exacerbating selling pressures.
Upcoming Earnings Reports
Greg’s note highlights some of his SSI work, suggesting that stocks are poised for a rebound. He points out the behavior observed last summer through October, characterized by lower highs and lower lows in the market. However, during that period, certain industries began to show signs of turning around. By November, a remarkable rally commenced, starting in late October. Subsequently, almost every sector experienced an upturn, with the exception of materials, which did not show significant improvement. So be prepared to react if the upcoming earnings reports yield positive results.
SSI’s
Greg also noted that the S&P 500 PMO is rising, indicating that some stocks are starting to receive bids. This surge is notable, with stocks trading 20% above previous levels, compared to just 2% before this week. There does seem to be some rotation occurring. Commodities remained relatively stable throughout the week, most hovering around similar levels. Each day this past week, the Advance-Decline data appeared less dire, but the significant downturn in NVDA, TSLA, and AAPL resulted in a notable drop in the major names. It’s definitely a change in the market landscape, but the potential turnaround in sectors like Industrials and Transportation is intriguing. Is this for a week or a month? It’s a great question! The significant breaks in indexes and the widespread sell signals suggest more weakness in the months ahead. Will we once again witness our classic run in early June? That’s all I’ve considered here. Feel free to discard it if it’s not relevant!
The S&P 500 % PMO Rising INDX
In analyzing the Red-Light/Green-Light Breadth System, we observe that the percentage of Nasdaq stocks is above their 200-day moving average, and the breadth indicator shows signs of leveling off after the recent selling pressure. These indicators are in line with Greg’s analysis. It wouldn’t be surprising to see the indexes rebound, potentially leading price action to trade into the underside of their 50-day moving average.
The Red-Light/Green-Light Breadth System
In the realm of bond markets, the 10-year Treasury yield made a notable leap, climbing 11 basis points to 4.61% during the week. It peaked at a five-month intraday high on Tuesday, almost touching the 4.7% mark. This surge underscores shifting market expectations, with sentiment now leaning towards just one anticipated Fed rate cut in 2024.
10-Year US Treasury Yield
The U.S. dollar trade saw a slight decline over the week, nearing a potential resistance level amid increased positioning, which appears to be crowded. As price action extends away from its 10-week or 50-day moving average, attention shifts to the overhead horizontal resistance line as a significant level to monitor. This suggests the possibility of price action spending some time consolidating between horizontal resistance and the 50-day moving average. Given the proximity of major indexes to a potential bounce level, a temporary pause in the dollar trade would be logical.
US Dollar – Weekly Chart
U.S. crude oil futures closed the week at $82.22 a barrel, marking a 3.8% decline as price action tested the 50-day moving average. This movement has provided clarity regarding critical levels on the chart. A break above the horizontal resistance line would signal (or suggest) a continuation of the uptrend that began from the December low. At this point, the 50-day moving average serves as a defined risk level or a point of downside support worth monitoring.
Crude Oil – Daily Chart
On Friday, the Toronto Stock Exchange saw a modest rise, driven by gains in energy and interest rate-sensitive sectors. It outpaced Wall Street, making up for some of its weekly losses. Price action suggests a potential bullish flag continuation pattern forming off the 50-day moving average. The TSX composite index closed up 98.93 points, or 0.5%, at 21,807.37, marking its third consecutive day of gains as price action walked across the top of the 50-day line. Despite this, the index recorded a 0.4% decline for the week, following a 1.6% drop the previous week when the bull flag pattern began to emerge. Notably, money markets indicate a roughly 50% chance that the Bank of Canada will begin easing as early as June, while the Fed is expected to wait until July or September. Stay tuned!
TSX – Daily Chart
The price of copper had another robust week, demonstrating strength as it began to surpass the next level of resistance on the chart.
Copper – Weekly Chart
The price action in gold remains strong, with numerous favorable setups in precious metals appearing in the scanner results, particularly in Canadian markets. Take the time to review each ticker and compile your own watchlist that suits your strategy.
Gold – Weekly Chart
The price of silver continues to correlate with that of gold. This price action also serves as a lesson and a reminder of the type of power this setup can yield. Each week, as we charted the pattern, price action coiled to an apex, building up the potential of the power we are witnessing. The same patterns repeat themselves over and over again in the market. So, the next time you encounter a similar technical setup, it allows for an expected outcome. Once you have an expected outcome, you can create a trading plan not only to capture the potential upside move but also to define downside risk.
Silver – Weekly Chart
The price action in Bitcoin presents a binary event, where the 50-day moving average eliminates the need for complex analysis and serves as a definitive reference point for decision-making. It essentially takes out all thinking and provides a clear line in the sand for traders to react. This setup resembles the simplicity of the Red-Light/Green-Light Breadth System. Currently, trading below the 50-day moving average indicates bearish sentiment (‘red light’), while reclaiming this average would signal bullish sentiment (‘green light’). As the old technical saying goes, ‘What was once support becomes resistance.’ Thus, the 50-day moving average now acts as defined resistance until proven otherwise.
Bitcoin – Daily Chart
The market’s downward trajectory is evident, with major indexes significantly below their 50-day moving averages and continuing to trend downward beneath their 21-exponential day averages. Even tech giants like Nvidia are succumbing to selling pressure, leading the market downturn as investors panic out of once high-flying stocks. We are witnessing a phenomenon best described as a rolling of selling, where the market is now targeting the leaders—or those left standing. It’s as if investors are rotating into safety, as seen in the buying of the Dow Jones Industrial Average, which ended the week flat while the S&P and Nasdaq plummeted. In such an environment, it’s prudent to refrain from stock purchases unless backed by a well-tested plan and a clear strategy. Speculative purchases should be avoided, and investors should focus on building watchlists and identifying stocks showing relative strength amid market turbulence. However, should the markets rebound next week, it’s essential to remain agile and prepared to act. A bounce towards the underside of the indexes’ 50-day moving average wouldn’t be unexpected, especially given the current short-term oversold conditions and the signs of stabilization or upward movement in other indicators. Yet, it’s crucial to remember that while everyone was eagerly anticipating a dip to buy, the current sentiment appears to have shifted, with many now waiting for a rally to sell into. In such a market dynamic, it’s essential to acknowledge that the anticipated rally for selling might not materialize for quite some time. As we delve into the daily setups, let’s heed the wisdom of Martin Zweig: ‘The market is like a manic-depressive. It swings from one mood to another, and it is your job to become attuned to those mood swings.’
US Daily Setups
AXP – American Express Co.
American Express exhibited notable price movement on Friday following its earnings report. The stock is poised to establish a 52-week high, accompanied by the PPO momentum indicator trending upwards from the zero line. This indicates significant relative strength amidst a broader market downturn.
LINK TO CHART – https://schrts.co/acenMHqJ
BAC – Bank Of America Corp.
Bank Of America seems to be forming a potential bullish continuation pattern. Concurrently, the PPO momentum indicator is attempting to curl higher from the zero line, while relative strength is reaching a 52-week high compared to the S&P 500.
LINK TO CHART – https://schrts.co/BHIBicmT
LMT – Lockheed Martin Corp.
Lockheed Martin is currently endeavoring to break out from a substantial multi-year consolidation/continuation pattern.
LINK TO CHART – https://schrts.co/PGVXbgTi
SFM – Sprouts Farmers Market Inc.
Sprouts Farmers Market prepares to report earnings on May 1st as its price action is presently consolidating within a potential continuation pattern, situated below its all-time high.
LINK TO CHART – https://schrts.co/rFFzpWIp
SII – Sprott Inc.
Sprott is presently absorbing its recent surge, resembling a potential bullish flag continuation pattern. Even if a bull flag doesn’t materialize, closely monitor this consolidation phase for any indications of a potential uptrend continuation.
LINK TO CHART – https://schrts.co/RYSVvZcz
WFC – Wells Fargo & Co.
Wells Fargo continues to exhibit relative strength compared to the broader market, breaking out to yet another new all-time high.
LINK TO CHART – https://schrts.co/gaDnjUSp
Canadian Daily Setups
CVX.V – Cematrix Corp.
Cematrix seems to have retraced to retest the recent breakout, presenting a potential bull flag continuation pattern.
LINK TO CHART – https://schrts.co/wwUdmjfJ
GSY.TO – goeasy Ltd.
goeasy continues to showcase relative strength relative to the broader market, as price action appears to be positioned below its 52-week high.
LINK TO CHART – https://schrts.co/IjhHKupw
PRYM.TO – Prime Mining Corp.
Prime Mining witnessed higher than usual volume on Friday as its price action endeavors to ascend from the recently highlighted pattern.
LINK TO CHART – https://schrts.co/JXqaHPVc
SII.TO – Sprott Inc.
Sprott is presently digesting its recent surge, resembling a potential bullish flag continuation pattern. Even if a bull flag doesn’t materialize, closely monitor this consolidation phase for any indications of a potential uptrend continuation.
LINK TO CHART – https://schrts.co/dnGNZTvb
TMG.V – Thermal Energy Intl, Inc.
Thermal Energy is breaking out from the recently highlighted pattern, surging to a 52-week high accompanied by robust volume.
LINK TO CHART – https://schrts.co/gXWKMyWb
WDO.TO – Wesdome Gold Mines Ltd.
Wesdome Gold Mines appears to be setting up for a breakout to a 52-week high.
LINK TO CHART – https://schrts.co/tjqqYIXZ
To conclude our report, we thank you for your engagement and insights. Your feedback is valuable, and we encourage you to share your recommendations. Stay attentive to the Daily Setups, the Workspace, and the Watchlists for emerging opportunities. Additionally, be sure to explore the PDFs of Friday’s scan results provided below. Until next time, happy trading!
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.
EXPORT – US Watchlist Scan – 2024-04-20
AAON, ABBNY, ACGL, ACIW, AEE, AEL, AEM, AEP, AES, AFL, AGI, AGM, AIG, AIZ, AJG, ALL, ALTR, AM, AMAL, AMCR, AMGN, AMP, ARCH, ARCO, ATO, AU, AVAV, AVB, AVY, AX, AXP, BAC, BALL, BBW, BCO, BCSF, BECN, BEN, BG, BIRK, BITW, BK, BKR, BMA, BMY, BPOP, BRK/B, BRO, BRP, BSY, BXP, C, CACI, CAG, CAH, CAL, CARG, CASH, CASY, CB, CBOE, CBZ, CCAP, CCEP, CECO, CENT, CENTA, CFG, CHCO, CHD, CHRW, CHTR, CI, CINF, CIVI, CL, CLBT, CLH, CLSK, CMA, CMCSA, CME, CMS, CNA, CNC, CNO, CNP, CNX, COF, COKE, COOP, COR, CPA, CPB, CPG, CRAI, CRBG, CRTO, CSWC, CTRA, CTVA, CUBI, CVX, CW, D, DAC, DB, DCBO, DD, DFIN, DMLP, DSGX, DTE, DTM, DUK, E, ED, EDR, EG, EGO, EIX, ENLC, ENV, ENVA, EOG, EPAC, EPD, EQR, EQT, ERIE, ES, ESTC, ET, ETR, ETRN, EVRG, EWBC, EXC, EZPW, FBP, FCFS, FCN, FCNCA, FDIG, FDX, FE, FIS, FMC, FNF, FOX, FRT, GBDC, GBX, GD, GDX, GDXJ, GIB, GIII, GIS, GLD, GLP, GLRE, GNRC, GOLF, GPC, HAL, HAS, HBAN, HCC, HCI, HES, HESM, HIBB, HIG, HMY, HNI, HON, HQY, HRL, HSY, HTGC, IAG, IBKR, IBOC, IDR, IFF, IMCR, INFA, ING, INSW, INVH, IPAR, IPG, ITA, ITCI, IVZ, JBI, JETS, JKHY, JNJ, JPM, K, KDP, KEY, KGC, KHC, KIM, KMB, KMI, KNTK, KNTNF, KO, KR, KRE, KTOS, L, LAD, LBRT, LEVI, LHX, LKQ, LMT, LNT, LOB, LOW, LPG, LPLA, LW, LYB, LZB, MAG, MAIN, MAMA, MARA, MBIN, MBWM, MCY, MET, MFC, MKC, MMM, MO, MOH, MOS, MPLX, MRK, MS, MTB, MUSA, NATR, NBN, NEE, NEM, NGVC, NHC, NI, NMIH, NOC, NOG, NR, NS, NSIT, NSSC, NTB, NVS, OBDC, OFG, OKE, OMC, ORRF, OSG, OTTR, OZK, PAA, PAGP, PARA, PAX, PBA, PBPB, PBR/A, PEG, PEP, PFBC, PFE, PFG, PG, PGR, PLMR, PM, PNC, PNTG, PNW, POST, POWL, PPC, PPL, PRDO, PRIM, PRMW, PRU, PWP, PXD, QCRH, RCL, REG, REVG, REX, RGA, RIOT, RJF, RNR, ROP, RRC, RTX, RYAAY, SCHW, SDRL, SFM, SHEL, SIGI, SII, SKWD, SLV, SO, SPB, SRE, SSNC, STZ, SUN, SWAV, SWBI, SWN, SXC, SYF, SYY, T, TBBB, TFC, TGT, TIPT, TKR, TMUS, TRIN, TSCO, TSN, TTE, TXRH, TXT, UAN, UDR, UMBF, UNM, USAC, USLM, USO, VCTR, VEL, VICI, VITL, VLGEA, VLTO, VRTS, VTR, VZ, WABC, WAL, WBA, WBD, WBS, WDOFF, WEC, WES, WEST, WFC, WGMI, WHD, WM, WMB, WRB, WTFC, WTS, WTW, WWD, XLF, XLP, XLU, XOM, XYL
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.
EXPORT – Canadian Scanner Results – 2024-04-20
AAV.TO, ABX.TO, ACO/X.TO, ACT.CA, AEM.TO, AGI.TO, AKG.TO, ALA.TO, AMX.V, AQN.TO, ARE.TO, ARIS.TO, ATD.TO, ATD/A.TO, AX/UN.TO, AYA.TO, BBD/B.TO, BCE.TO, BDT.TO, BEP/UN.TO, BEPC.TO, BIPC.TO, BIR.TO, BK.TO, BK/PA.TO, BRK.NE, BRM.V, BTB/UN.TO, BTE.TO, CDR.TO, CEU.TO, CF.TO, CG.TO, CIX.TO, CNC.V, CPG.TO, CRDL.TO, CRT/UN.TO, CU.TO, CVE.TO, CWB.TO, CXB.TO, D/UN.TO, DCM.TO, DNTL.TO, DOO.TO, DPM.TO, DRX.TO, DSV.TO, EDV.TO, ELD.TO, ENB.TO, EQB.TO, EQX.TO, ETG.TO, FCR/UN.TO, FFH.TO, FFN.TO, FIL.TO, FTN.TO, FTT.TO, FVI.TO, FWZ.V, GAU.TO, GDC.TO, GEI.TO, GMIN.TO, GMX.TO, GPAC.V, GSY.TO, GTE.TO, GTWO.V, HAI.TO, HME.V, HR/UN.TO, IAG.TO, IAU.TO, IGM.TO, ILLM.TO, IMG.TO, INO/UN.TO, ITR.V, JPM.NE, K.TO, KEL.TO, KEY.TO, KNT.TO, KRR.TO, LGC.V, LUG.TO, MAG.TO, MDI.TO, MDP.TO, MFC.TO, MX.TO, NGEN.V, NGEX.TO, NGT.TO, NTR.TO, NVA.TO, OIII.V, OSK.TO, OTEX.TO, PET.TO, PEY.TO, PFE.NE, PMZ/UN.TO, POU.TO, POW.TO, PPL.TO, PRL.TO, PRMW.TO, PRYM.TO, PSK.TO, PSLV.TO, RCI/B.TO, RML.V, RUP.TO, SDE.TO, SEA.TO, SIL.TO, SIS.TO, SJ.TO, SLF.TO, SLI.V, SPB.TO, SRU/UN.TO, SSL.TO, SSRM.TO, SU.TO, SVM.TO, T.TO, TCW.TO, TD.TO, TINY.V, TNT/UN.TO, TOU.TO, TSU.TO, TXG.TO, VET.TO, VGCX.TO, VLE.TO, VZ.NE, WDO.TO, WE.V, WED.V, WEED.TO, WJX.TO, ZDC.V
