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
Market Hangover: Navigating the First Week of 2024
If 2023 was a celebration for markets, the initial trading days of 2024 have resembled a sobering hangover. Major indexes managed slight gains on Friday but concluded the week in negative territory due to a pullback in big tech stocks.
While declining yields propelled markets upwards last year, their recent ascent has presented challenges. The 10-year Treasury crossed the 4% mark by the week’s close, prompting speculation about the Federal Reserve’s stance on interest rates following the release of nonfarm payrolls data on Friday. Notably, price action is rebounding strategically from a technical support line in the form of a bull flag retest.
10-Year US Treasury Yield
Despite the sluggish start to the year, it’s crucial not to interpret it as a harbinger of weakness for the entire year. Historical data shows that even when the S&P 500 began the first four trading days lower, as it narrowly avoided this week, but occurred twice since 1928, the year concluded with gains both times.
Earnings season, launching next Friday with major banks, airlines, and healthcare reporting, could dictate the market’s trajectory. CEO outlooks for 2024 will likely weigh more than fourth-quarter numbers, especially with the market anticipating a 11.6% profit growth in 2024.
The SSIH continues to hover in the bullish range as the PPO retests the zero line, and on Friday, the SSIF exhibited an upward curl. This occurred as major indexes retested either a significant breakout line or one of the system’s moving averages, resembling a bull flag pattern. It is crucial to monitor whether these retest levels hold, especially considering that many stocks identified through scanner results found support late in the week. Some stocks flashed buy signals, indicating a potential emergence of a new sector theme in the US marijuana space. The sustainability of these retest levels may depend largely on cues from the bond market. The “Magnificent Seven” stocks, which include Meta Platforms, Microsoft, and Nvidia, contributed over 60% to the S&P 500’s total return in 2023. Meta and Nvidia, featured in our daily setups, could impact index retest levels if they trend higher.
SSIH
SSIF
The red-light/green-light breadth system signals a potential red-light, adding another layer to the puzzle that market analysts are deciphering. However, it’s crucial to view it as just one piece of the puzzle, not an ultimate determinant.
The Red-Light/Green-Light Breadth System
The S&P 500 concluded the week with a 1.5% downturn, breaking a nine-week winning streak, while the Dow Jones Industrial Average experienced a 0.6% slip. The Nasdaq Composite, known for its tech-heavy composition, declined by 3.2%. Given the pivotal positions of major indexes, even minor market shifts have the potential to significantly alter the overall bullish or bearish outlook. Notably, the S&P 500 found support at the 21-day moving average in the form of a potential bull flag, indicating a level of support. On the other hand, the Nasdaq is presently trading below its diminishing 21-day moving average but is approaching a noteworthy support level marked by the green dotted line also in the form of a bull flag. Conversely, the Russell 2000 encountered resistance at a certain point, resulting in a retreat and a return within a broader range.
S&P 500 – Daily Chart
Nasdaq – Daily Chart
Dow Jones Industrial Average – Daily Chart
Russell 2000 (ETF) – Weekly Chart
The U.S. dollar concluded the week with a 1.09% gain, displaying price action that seems to be performing a bull flag retest of support, akin to several charts under scrutiny today. The pivotal aspect lies in the upper and lower trendlines of this pattern, setting the stage for a binary outcome. A move above the upper trendline would signify bullish for the dollar, while a descent below would be deemed bearish. This pattern analysis provides a valuable lens for anticipating potential shifts in the dollar’s trajectory.
US Dollar – Weekly Chart
U.S. crude oil futures saw a 3% rebound, reaching $73.81 per barrel last week, finding support at a critical level. This sets the stage for a potential bull flag retest, in line with patterns observed in various charts mentioned earlier.
Crude Oil – Weekly Chart
The Toronto Stock Exchange concluded with a modest gain of 66.2 points on Friday, or 0.3%, reaching a closing point of 20,937.55. However, for the week, it experienced a slight downturn of 0.1%, reflecting a waning of the optimism that had propelled markets in the last two months of 2023. Notably, the price action rebounded off the breakout line retest.
TSX – Weekly Chart
The price of gold continues to exhibit resilience, stubbornly consolidating along the breakout line of the pattern. The current price action suggests a period of consolidation as market participants await the emergence of directional momentum. This could indicate a cautious stance among investors, observing the gold market closely for cues on the next significant move.
Gold – Weekly Chart
On the other hand, the uranium theme encountered challenges, facing a tough week as the price action of numerous uranium miners retraced to the support line, signaling a delicate situation. For those yet to secure profits, one could consider establishing stop-loss orders based on individual goals.
Uranium Theme – Global X Uranium ETF
Meanwhile, the bitcoin theme remains robust, with anticipation building around the SEC’s potential approval of the first spot bitcoin ETFs in the upcoming week. This development holds the promise of triggering broader institutional involvement. According to Friday’s Bloomberg report, the SEC staff reported no further issues for spot bitcoin ETF applicants, reinforcing the positive outlook for the cryptocurrency market.
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.
The market rally faced a challenging start in 2024, not unexpected after nine consecutive weeks of gains. Examining last week’s performance also sheds light on sector dynamics. Both the S&P 500 and Nasdaq are hovering around crucial levels, mirroring the situation in many leading stocks. Although a few stocks exhibited buy signals, their success hinges on the broader market’s direction. It can be noted that bulls are attempting to hold their ground, but progress is modest. Amidst the intraday swings, it’s crucial to avoid an emotional roller coaster, especially when the market is at key levels. Nevertheless, the market pullback unveils potential buying opportunities. Build watchlists, emphasizing stocks finding support and displaying relative strength. Stay actively engaged with the market, maintaining an open mind to adjust exposure or step back as needed.
What Worked Last Week
US Daily Setups
ETRN – Equitrans Midstream Corp.
Equitrans Midstream seems to be attempting to trend higher from a multi-month base pattern.
LINK TO CHART – https://schrts.co/kDwKGEuP
GEOS – Geospace Technologies Corp.
Geospace Technologies is breaking out from a continuation pattern with significant volume, indicating potential momentum in the current trend.
LINK TO CHART – https://schrts.co/xadgazzV
META – Meta Platforms, Inc.
Meta Platforms is attempting to move higher from a bull flag retest of the recent base breakout, suggesting potential upward momentum.
LINK TO CHART – https://schrts.co/uCzuDxCY
MRNA – Moderna Inc.
Moderna is set up in the form of a significant multi-year falling wedge continuation pattern. Keep a close eye on the potential breakout, especially considering the increasing volume over the last four weeks.
LINK TO CHART – https://schrts.co/xHmahRcq
MSOS – AdvisorShares Pure US Cannabis ETF
On Thursday, we highlighted a breakout in volume on the AdvisorShares Pure US Cannabis ETF and noted that the price action was poised for a potential bottoming pattern breakout. Friday continued to experience a surge in volume, followed by the price pushing above the trigger line. There are more US cannabis-related tickers in the Canadian setups section of today’s report.
LINK TO CHART – https://schrts.co/unJhhuVE
NVDA – NVIDIA Corp.
NVIDIA has consolidated into a tight range on the right side of a significant multi-month consolidation pattern, situated below new highs. Keep a close watch for a potential breakout or a continuation of the uptrend.
LINK TO CHART – https://schrts.co/PzvqarTI
Canadian Daily Setups
CURA.TO – Curaleaf Holdings, Inc.
On Wednesday, we emphasized the Curaleaf setup and noted its consistent presence among various US marijuana stocks in scan results following the end-of-summer volume surge. This suggested a building momentum within the $MSOS sector, a trend often obscured by distractions from pundits focusing on index movements. On Friday, the price action surged by over 7%, signaling a potential breakout for the stock and ETF supported by an exceptionally bullish volume profile.
LINK TO CHART – https://schrts.co/RFFievHN
GTII.CA – Green Thumb Industries Inc.
Green Thumb Industries continues to set up for a potential breakout, signaling a possible shift in market dynamics.
LINK TO CHART – https://schrts.co/niqpcaNa
MMED.NE – Mind Medicine Inc.
Mind Medicine is attempting to trend higher from a significant multi-year falling wedge bottoming pattern, suggesting a potential reversal in the current trend.
LINK TO CHART – https://schrts.co/XAxhWeYw
TRUL.CA – Trulieve Cannabis Corp.
Trulieve Cannabis appears to be set up on the right side of a significant bottoming base with an increase in bullish volume. Keep a close eye for potential upside strength that may lead to a breakout.
LINK TO CHART – https://schrts.co/PwaGnyJQ
TSU.TO – Trisura Group Ltd.
Trisura is curling higher off the lower trendline of a multi-year consolidation pattern. Keep a close watch for the potential continuation of upside strength.
LINK TO CHART – https://schrts.co/aidDxzpH
WFG.TO – West Fraser Timber Co. Ltd.
West Fraser Timber seems to be setting up below the upper trendline of a significant multi-year consolidation pattern. Keep a vigilant eye for a potential breakout, which could signal the continuation of the uptrend.
LINK TO CHART – https://schrts.co/eGvRGwJV
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.
US Watchlist Scan – 2024-01-06
AAL, ABBV, ABNB, ADP, AEM, AEP, AER, AFL, AGO, AIG, ALL, ALLE, ALTR, AMAL, AMCR, AMP, AMR, ANET, APO, ARCH, ARE, ARES, AROC, ASND, ATEYY, ATO, AVY, AWI, AWK, AXP, AXR, AYI, BAC, BALL, BAX, BBVA, BBWI, BBY, BCC, BCSF, BECN, BEN, BITW, BK, BLX, BPOP, BRK/B, BSBR, BTU, BVN, BXP, C, CACI, CAH, CAPL, CARR, CASY, CAT, CAVA, CB, CBAY, CCOI, CELH, CF, CFB, CFG, CGBD, CHRW, CI, CIEN, CINF, CM, CMA, CMI, CNA, CNC, CNM, CNP, COF, COR, CORZQ, COST, CPB, CQP, CRBG, CRESY, CSAN, CSWC, CTLT, CVI, CVS, CW, D, DAC, DAL, DAVA, DB, DBX, DD, DE, DFS, DGX, DHI, DHT, DIS, DLO, DOW, DRI, DTE, DUK, DVA, DVN, DXCM, EBAY, EC, ED, EG, EGY, EHC, EIX, EMN, EMR, ENLC, ENSG, EQT, ET, ETR, ETRN, EVR, EVRG, EWBC, EXAS, EXP, EXPD, EXR, F, FA, FANG, FE, FIS, FITB, FLEX, FLR, FLS, FOR, FRO, FRPT, FRSH, FSLR, FSV, FTAI, GBDC, GBX, GE, GEHC, GEL, GEOS, GFF, GGB, GIFI, GL, GLD, GLNCY, GLP, GLW, GM, GNTX, GPK, GPN, GPS, GS, GWW, H, HBAN, HCA, HD, HIG, HLT, HMC, HOLI, HOLX, HPE, HPQ, HSBC, HST, HTGC, HWM, HY, IBKR, IBN, ICE, IFF, IGIC, IHI, INSW, IP, IPG, IQV, IVZ, JBI, JBL, JCI, JKHY, JNJ, JNPR, JPM, KBH, KEY, KHC, KKR, KMI, KR, KRE, KVUE, L, LAD, LBRT, LDOS, LEN, LH, LIN, LLY, LNT, LPG, LPLA, LUV, LVS, LW, LYB, LYV, MAMA, MAR, MBIN, MCK, MDT, MELI, MET, META, MFC, MGM, MHK, MMM, MOD, MPLX, MRK, MRNA, MS, MSOS, MTB, MTCH, MU, MUSA, NCNO, NECB, NEE, NEM, NGS, NI, NLR, NOV, NRG, NRP, NS, NTRA, NTRS, NU, NVDA, NVS, NVT, NWSA, O, OBDC, OC, OKE, OMC, OSG, PAA, PAGP, PAGS, PAM, PARA, PBR, PBR/A, PCG, PCOR, PFG, PFGC, PGTI, PHG, PHM, PKG, PNC, PNTG, PNW, PPL, PRI, PRU, PWSC, PXD, PYPL, QSR, QTRX, RDNT, RDY, REGN, RELX, REPYY, REVG, RF, RGA, RHP, RJF, RL, ROK, RRC, RS, RWAY, SAH, SAIC, SFM, SKWD, SMCI, SNAP, SPLK, SPOT, SQSP, SRE, SRUUF, STNG, STT, STZ, SUN, SWBI, SWN, SXC, SYF, SYY, T, TAP, TDW, TEX, TFC, TGS, TGT, TM, TMUS, TNK, TNP, TPR, TRAK, TRMD, TROW, TRV, TSCO, TSN, TSQ, TT, TTE, U, UAL, UGP, UHS, UPS, USAC, USAP, USB, USFD, V, VIST, VMC, VOYA, VRTX, VST, VTOL, VTRS, VTSI, VZ, WAB, WBS, WDC, WEC, WES, WFC, WFRD, WRB, WYNN, XEL, XLB, XLC, XLE, XLF, XLU, XP, ZION, ZTS
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.
Canadian Scanner Results – 2024-01-06
AAUC.TO, AAV.TO, AAWH/U.CA, ABX.TO, AC.TO, ACO/X.TO, AD/UN.TO, AGF/B.TO, AI.TO, AKG.TO, ALA.TO, AMD.NE, AP/UN.TO, APR/UN.TO, AQN.TO, ARE.TO, ARX.TO, ASTL.TO, ATE.TO, ATH.TO, AX/UN.TO, AYR/A.CA, BBD/B.TO, BBD/PC.TO, BCE.TO, BDT.TO, BEP/UN.TO, BEPC.TO, BHC.TO, BIPC.TO, BK.TO, BLN.TO, BLX.TO, BMO.TO, BNS.TO, BRK.NE, BTB/UN.TO, CAD.V, CAS.TO, CEU.TO, CFP.TO, CFW.TO, CGX.TO, CHE/UN.TO, CHP/UN.TO, CHR.TO, CITI.NE, CJ.TO, CL.CA, CM.TO, CNQ.TO, CNR.TO, CPG.TO, CPX.TO, CR.TO, CRDL.TO, CRON.TO, CRR/UN.TO, CRT/UN.TO, CS.TO, CSH/UN.TO, CSU.TO, CTS.TO, CURA.TO, CVS.NE, CWB.TO, D/UN.TO, DBM.TO, DF.TO, DFN.TO, DFN/PA.TO, DFY.TO, DGS.TO, DII/B.TO, DIR/UN.TO, DIV.TO, DRM.TO, EFL.TO, EFN.TO, EFX.TO, EIF.TO, EIT/UN.TO, ELVA.TO, ENB.TO, ENGH.TO, ENS.TO, EQB.TO, ERE/UN.TO, ERO.TO, ESI.TO, ETG.TO, EXE.TO, EXRO.TO, FAR.TO, FC.TO, FCR/UN.TO, FDR.V, FFH.TO, FFN.TO, FN.TO, FRU.TO, FSV.TO, FSZ.TO, FTN.TO, FTS.TO, GAU.TO, GEI.TO, GLO.TO, GMIN.V, GSY.TO, GTE.TO, GTII.CA, GUD.TO, HITI.V, HME.V, HOM/U.TO, HR/UN.TO, IFP.TO, IGM.TO, IIP/UN.TO, IPO.TO, ISO.V, IVN.TO, JOY.TO, KEY.TO, KMP/UN.TO, L.TO, LBNK.V, LBS.TO, LFE.TO, LI.V, LLY.NE, LUN.TO, MDP.TO, MEG.TO, MFC.TO, MFI.TO, MI/UN.TO, MMED.NE, MPCT/UN.TO, MRE.TO, MTL.TO, MVRS.NE, MX.TO, NA.TO, NFG.V, NGD.TO, NGT.TO, NPI.TO, NVDA.NE, NWC.TO, NXR/UN.TO, OBE.TO, OGI.TO, OIII.V, OVV.TO, PAY.TO, PD.TO, PET.TO, PEY.TO, PHX.TO, PIF.TO, PKI.TO, PLTH.CA, PMZ/UN.TO, PNE.TO, POW.TO, PPTA.TO, PRQ.TO, PRV/UN.TO, PRYM.TO, PYPL.NE, QSR.TO, QTRH.TO, RCI/B.TO, REI/UN.TO, RSI.TO, RUP.TO, RY.TO, SAP.TO, SDE.TO, SES.TO, SGD.V, SGR/UN.TO, SGY.TO, SIA.TO, SIL.TO, SIS.TO, SOIL.TO, SOY.TO, SRU/UN.TO, STEP.TO, SU.TO, SVI.TO, SXP.TO, SYZ.TO, T.TO, TCN.TO, TCW.TO, TD.TO, TECK/B.TO, TER.CA, TF.TO, TH.TO, TKO.TO, TOI.V, TPZ.TO, TRP.TO, TRUL.CA, TSND.TO, TSU.TO, TUO.V, TVE.TO, TWM.TO, U/UN.TO, VET.TO, VRNO.NE, VZ.NE, VZLA.V, WCP.TO, WFG.TO, WN.TO, WPK.TO, WTE.TO, YGR.TO, ZEN.V, ZZZ.TO
