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.
Just a friendly reminder: The sector watchlists are updated every weekend. You may want to consider dedicating time to reviewing and creating your watchlist. Also, it’s essential to keep an eye on the Daily Setups and Workspace scan results, which can provide insights into 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 us via email 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
A Recap of 2023: Market Surprises, Record-Breaking Runs, and a Last-Minute Twist
In what was anticipated to be a modest year for stocks, 2023 unfolded as a blockbuster, defying the expectations of many. The S&P 500 wrapped up the year with an impressive 24% gain, landing a mere 0.6% shy of its January 2022 record. Simultaneously, the Dow Jones Industrial Average surged 14%, surpassing the 37,000 mark for the first time and achieving seven record closes in the year’s final days. Fueled by a fervor for artificial intelligence and prominent technology stocks, the Nasdaq Composite soared by 43%, marking its most exceptional performance since 2020.
However, amidst the plethora of successes and missed predictions, the S&P 500 index fell short of achieving a record high in 2023. Despite its best efforts, the index reached 4,793 on Thursday morning, tantalizingly close to its all-time high of 4,797, only to conclude the Christmas-shortened week at 4,770, reflecting a modest 0.32% increase. Nonetheless, the index concluded the year with a robust 24.2% gain, the most significant since 2021 and a rare occurrence since 2012, as it failed to secure a record high at least once during the year.
The Red-light/Green-light breadth system is showing signs of a potential slowdown following its strong performance. We’ll closely observe this indicator in the coming days to see if it signals a red light cross. Stay tuned for updates.
The Red-Light/Green-Light Breadth System
In last week’s stock market trading, the Dow Jones Industrial Average rose by 0.8%, the S&P 500 index advanced by 0.3%, and the Nasdaq Composite edged up by 0.1%, while the small-cap Russell 2000 experienced a marginal dip of 0.3%.
S&P 500 – Weekly Chart
Nasdaq – Weekly Chart
Dow Jones Industrial Average – Weekly Chart
Russell 2000 (ETF) – Weekly Chart
The SSIH continues to sit in the upper bullish run of the trading system.
SSIH
Meanwhile, the 10-year Treasury yield witnessed a 5 basis point decline to 3.86% for the week as price action now sits on a major support line, following a plunge to a five-month low on Wednesday. Despite a 3 basis point increase for the year, the yield significantly dropped from its late October peak of 5%.
10-Year US Treasury Yield
The dollar saw a marginal increase on Friday as price action now sits just below a support line on the chart but is positioned to conclude 2023 with its first yearly decline against the euro and a basket of currencies since 2020. Ouch!
US Dollar – Weekly Chart
Crude oil futures faced a 2.6% decline, closing at $71.65 per barrel last week, marking a 10.7% decrease for the entire year.
Crude Oil – Weekly Chart
The TSX experienced a week of consolidation following the breakout signal from the previous week.
TSX – Weekly Chart
The price of copper faced rejection at the trigger line highlighted in last week’s report. Stay tuned as this chart sets up for a binary event. A price move above the line would suggest a breakout, and if not, the price remains in a consolidation phase as long as it stays above the red support line.
Copper – Weekly Chart
The price of gold ended the week with a slight uptick as price action consolidated above the upper trendline of our pattern. Keep an eye on the daily setups for any emergence of gold mining stocks.
Gold – Weekly Chart
The uranium theme experienced a little whipsaw last week, though the overall theme remains intact as price action consolidates above the moving average of the ETF. In fact, we have two uranium charts making an appearance in our setups section of the report.
Uranium Theme – Global X Uranium ETF
After experiencing profit-taking in Bitcoin miners near the end of the week, the price of Bitcoin continues to exhibit strength and remains on-trend.
Bitcoin – Daily Chart
Sector Watchlist Highlights: Weekend Chart Setups
Link – Explore Our Featured Watchlist
In this segment of the weekly report, we delve into the setup section. As a friendly reminder, our sector watchlists receive updates every weekend, and we strongly encourage you to review these updates and craft your own watchlist based on the information provided. It’s also worth highlighting that monitoring the Daily Setups and Workspace scan results can yield valuable insights into potential future additions, potentially giving you a competitive advantage in the market.
After a robust year, the stock market begins 2024 on solid ground, although stocks may face occasional challenges in January. This potential is indicated by the emerging heaviness observed in the red-light/green-light breadth system. Additionally, when reviewing what worked last week, a surge in defensive sectors becomes apparent. It is also wise to scrutinize your 2023 trades. Identify any significant winners you may have missed out on or exited prematurely. The goal is to understand how to capture and avoid getting shaken out of more top-performing trends while minimizing losses. This may involve adhering more closely to your established system rules or conducting more thorough research. Alternatively, it might necessitate adjusting your rules or refining your investing style if you missed some of the biggest moves of the year, such as SMCI after the May breakout signal or MARA following the 200% run it recently experienced.
What Worked Last Week
US Daily Setups
BSX – Boston Scientific Corp.
Boston Scientific is breaking out from a significant multi-month cup base, reaching a new all-time high.
LINK TO CHART – https://schrts.co/gGNbRWPy
DNN – Denison Mines Corp.
Denison Mines is consolidating in the form of a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/diteISuV
ESOA – Energy Services of America Corp.
Energy Services of America is breaking out to a 52-week high, driven by a bullish volume profile.
LINK TO CHART – https://schrts.co/HSqxUyXC
GD – General Dynamics Corp.
General Dynamics is breaking out from a significant multi-year basing pattern, reaching a new all-time high.
LINK TO CHART – https://schrts.co/tNbTyvMs
HDSN – Hudson Technologies, Inc.
Hudson Technologies has consolidated into the tight apex of a continuation pattern. Keep an eye out for a potential breakout.
LINK TO CHART – https://schrts.co/CKaKCemq
VMC – Vulcan Materials Co.
Vulcan Materials appears to be set up on the right side of a significant multi-month basing pattern. Keep an eye on a potential breakout.
LINK TO CHART – https://schrts.co/xYWbnJIt
Canadian Daily Setups
ACO/X.TO – Atco Ltd.
Atco is attempting to break out from a bottoming pattern.
LINK TO CHART – https://schrts.co/RKKgGbJA
ALA.TO – AltaGas Ltd.
AltaGas is attempting to trend higher from a significant multi-year consolidation/continuation pattern.
LINK TO CHART – https://schrts.co/IrDTtgrf
BNS.TO – The Bank of Nova Scotia
The Bank of Nova Scotia continues to see bullish price action as it attempts to break out from the highlighted falling wedge.
LINK TO CHART – https://schrts.co/HkpKjpbz
CJT.TO – Cargojet Inc.
Cargojet is now attempting to trend higher from a bull flag continuation pattern, following its giant bottoming wedge breakout highlighted in previous daily setups.
LINK TO CHART – https://schrts.co/rMVitXri
ECN.TO – ECN Capital Corp.
ECN Capital is now starting to push above the trigger line of the falling wedge.
LINK TO CHART – https://schrts.co/MEWZXNCe
U/UN.TO – Sprott Physical Uranium Trust
Sprott Physical Uranium Trust continues its uptrend as price action threatens another new 52-week high.
LINK TO CHART – https://schrts.co/qHnRaCfY
To bring our report to a close, we thank you for your engagement and insights. Your feedback is of great value, 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 scanner result PDFs provided below of Friday’s scan results. 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 – 2023-12-30
ABBNY, ADBE, AFL, AIZ, ANSS, AON, AOS, BAESY, BAH, BBVA, BSX, CAG, CAPL, CB, CBOE, CHD, CI, CINF, CL, CLX, CMS, CNA, CNC, CNP, COR, CPB, CPRT, CRH, CW, DAC, DGX, DNN, DRI, DUK, E, EA, EBAY, ED, EDU, ELTK, ELV, EQNR, ERIE, ESOA, ET, ETN, ETR, FDS, FLT, GD, GEOS, GL, GLNCY, GLP, HDSN, HII, HLT, HOLX, HON, HSBC, HUBB, HURN, ICFI, IDT, IMO, INSW, JHX, JNJ, K, KO, KR, KVUE, L, LAD, LAUR, LDOS, LI, LII, LIN, LLY, LMT, LOGI, LULU, LVS, LWAY, MA, MAMA, MAR, MCD, MCK, MDLZ, MLM, MNST, MO, MOH, MPLX, MRK, MSFT, MSI, MSOS, MVO, NGS, NLR, NOC, NOW, NS, NTNX, NVS, NXE, NYT, OSG, PAGP, PAM, PDD, PEP, PGR, PR, QSR, RBA, ROST, RUSHA, RUSHB, SHEL, SRE, STN, SYK, T, TDY, TGS, TJX, TRGP, TRI, TRMD, TRV, TSN, TTE, TW, URA, URNJ, URNM, VIPS, VLGEA, VMC, VRSK, VZ, WEC, WES, WM, WMG, WRB, WTW, XEL, XLP, XLV, YELP, YUM, YY, ZBH
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 – 2023-12-30
ABX.TO, ACO/X.TO, ACT.CA, AIM.TO, ALA.TO, AMD.NE, AMRQ.V, AQN.TO, ARE.TO, ARTG.V, ATD.TO, ATD/A.TO, ATH.TO, ATRL.TO, ATS.TO, AX/UN.TO, BBD/B.TO, BCE.TO, BEP/UN.TO, BEPC.TO, BHC.TO, BNS.TO, BRK.NE, BYD.TO, CCA.TO, CCL/B.TO, CDR.TO, CFP.TO, CHE/UN.TO, CHP/UN.TO, CIA.TO, CJT.TO, CMG.TO, CNC.V, CNQ.TO, CNR.TO, CPX.TO, CRON.TO, CSH/UN.TO, CTC/A.TO, CU.TO, CURA.TO, CWB.TO, D/UN.TO, DCM.TO, DFN/PA.TO, DFY.TO, DGHI.V, DHT/UN.TO, DML.TO, DNG.TO, DOL.TO, DSG.TO, DXT.TO, ECN.TO, EFN.TO, EIT/UN.TO, EMA.TO, EU.V, FCU.TO, FFN/PA.TO, FSV.TO, FSZ.TO, FTS.TO, GEI.TO, GFL.TO, GIB/A.TO, GLO.TO, GMIN.V, GOLD.TO, GOLD.V, GRA.TO, GWO.TO, HLS.TO, HME.V, HPS/A.TO, IAG.TO, IBT.V, IFC.TO, IFOS.V, IMO.TO, JWEL.TO, KEI.TO, KMP/UN.TO, L.TO, LB.TO, LBS.TO, LMN.V, LSPD.TO, MATR.TO, MDI.TO, MDP.TO, MFI.TO, MRE.TO, MSFT.NE, MTL.TO, NA.TO, NBLY.TO, NFI.TO, NGEN.V, NPK.TO, NVDA.NE, NWH/UN.TO, NXE.TO, OSK.TO, PBH.TO, PD.TO, PET.TO, PIC/A.TO, PIF.TO, PLZ/UN.TO, PMZ/UN.TO, PPL.TO, PRQ.TO, PRV/UN.TO, PSU/U.TO, PZA.TO, QBR/B.TO, QFOR.TO, QSR.TO, RBA.TO, REG.V, REI/UN.TO, RSI.TO, SASK.CA, SBC.TO, SECU.V, SGD.V, SHLE.TO, SIA.TO, SJ.TO, SLF.TO, SRU/UN.TO, STN.TO, SU.TO, SVI.TO, TCL/A.TO, TD.TO, TF.TO, TFII.TO, TH.TO, TOU.TO, TOY.TO, TPZ.TO, TROY.CA, TSU.TO, TWM.TO, U/U.TO, U/UN.TO, URC.TO, VNP.TO, VRNO.NE, VZLA.V, WCN.TO, WEB.V, WILD.TO, WN.TO, WPK.TO, WSP.TO, X.TO, ZEN.V, ZZZ.TO
