SYS Research – Weekend Report – February 17, 2024

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

 

Investors Pause as Inflationary Heat Tests Market Rally

In a departure from the relentless upward trajectory witnessed in the past weeks, all three major U.S. indexes closed lower as the market grappled with unexpected inflation readings. This abrupt shift in momentum raises concerns among investors, casting doubt on the ease with which the Federal Reserve can combat inflation.

Despite a challenging week, the stock market weathered the storm admirably. Even with the backdrop of a 14 out of 15-week ascent, the market remained resilient in the face of two inflation reports exceeding expectations. However, the prevailing signs of strain in the indexes signal a prudent moment for investors to carefully define their downside risks in alignment with their individual goals and trading strategies. As the legendary trader Paul Tudor Jones aptly notes, “The most important rule of trading is to play great defense, not great offense.”

On Friday, the impact of these inflation concerns was palpable, particularly in interest-rate-sensitive sectors such as technology and real estate. The tech-heavy Nasdaq Composite Index experienced a 0.82% decline, while the S&P 500 and Dow Jones Industrial Average dropped by 0.48% and 0.37%, respectively, representing the first weekly decline for any of them since early January. Despite a 4% tumble on Tuesday, the small-cap Russell 2000 managed to rally 1.16%. All four indexes continue to maintain positions above their 21-exponential day moving averages.

Nasdaq – Daily Chart

S&P 500 – Daily Chart

Dow Jones Industrial Average – Daily Chart

Russell 2000 (ETF) – Weekly Chart

The 10-year Treasury yield surged by 11 basis points to 4.295% in response to the heightened inflation data. Markets are now adjusting their expectations, anticipating four quarter-point rate cuts in 2024, possibly just three—a considerable shift from the six or seven anticipated just a month ago. Federal Reserve policymakers, initially signaling three cuts in 2024, are now pushing back on the notion of aggressive easing. As the market navigates these uncertainties, investors are urged to approach the current landscape with a keen focus on defense.

10-Year US Treasury Yield

When examining the Red-Light/Green-Light Breadth System, market breadth is showing improvement, despite a challenging Tuesday.

The Red-Light/Green-Light Breadth System

The dollar index, assessing the greenback against six major currencies, concluded its fifth straight week of gains, registering a 0.18% increase to reach 104.18. Keep a watchful eye on the evolving trend, especially considering the weekly candle signaling indecision at a critical level of resistance/support.

US Dollar – Weekly Chart

U.S. crude oil posted a 2.11% increase, reaching $78.46 a barrel this week, marking its highest close in three months. The chart’s current setup appears bullish, indicating a potential breakout in the near future – closely monitor for confirmation.

Crude Oil – Weekly Chart

Canada’s primary stock index reached its highest level in nearly two years on Friday. The TSX composite index concluded the week with a gain of 246.01 points, or 1.17%, closing at 21,255.61, its highest level since April 2022. This surge broke a two-week losing streak, and the price action suggests a potential breakout from its multi-week trading range. Keep a close watch on the evolving market conditions.

TSX – Weekly Chart

Dr. Copper had a robust week, yielding several setups on our scanner results. Explore the copper watchlist on our website. The price of copper successfully retested the bottom of its trading range and is now flagging along the upper trendline from the recent wedge breakout. Monitor closely next week to assess if the price can maintain its upward momentum.

Copper – Weekly Chart

The price of gold is currently flagging along the upper trendline of its substantial multi-year consolidation pattern, positioned just below all-time highs. Intriguingly, the price action is now resting on the 20-week (or 100-day) moving average and slightly above a flat 40-week (or 200-day) moving average. Keep a close watch to see if this level can hold, and observe for indications of potential upside strength, especially as gold miner names are beginning to exhibit signs of attempting to move higher from their lows.

Gold – Weekly Chart

Silver had a strong week as its price action consolidates into the apex of a substantial multi-year triangle pattern. Observe the notable increase in volume during this week. Monitor closely for any indications of potential upside strength, particularly if the price of gold begins to move higher.

Silver – Weekly Chart

The price of Bitcoin seems to be digesting its recent surge, entering a consolidation phase above an upward-sloping 20-day moving average, as evident on the Bollinger Bands. Keep an eye on the evolving trend for potential developments.

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.

Upon reviewing what worked last week, the materials and energy sectors showed strong performance, contributing to seven of the S&P 500’s 11 sectors closing positively. Despite the market rally’s resilience and minimal pullbacks amid various challenges, it’s important to note that indexes, excluding the Russell 2000 and the TSX, remain stretched. While overall sentiment is bullish, there’s a noticeable froth in the AI space, raising concerns about a potential sell-off, especially in hot AI plays. Nvidia’s upcoming earnings might act as a positive catalyst, but caution is advised due to the looming risk of a substantial correction in this domain.

On the flip side, there could be attractive buying opportunities in the materials and energy sectors, with a potential setup emerging in precious metals. However, aside from earnings gaps, there are limited attractive setups in other areas. Managing downside risk is crucial, especially if selling pressure intensifies, by implementing stop-loss measures or protective strategies. Maintaining an updated watchlist is imperative in the dynamic market that often defies conventional expectations. During market pullbacks, stocks may either correlate uniformly or demonstrate divergent movements, with some ascending while indexes undergo rotation. This becomes particularly pertinent if the resource space is poised for increased activity. As we explore daily setups, vigilance and adaptability are key in navigating the evolving market landscape.

What Worked Last Week

US Daily Setups

EPAM – EPAM Systems, Inc.

EPAM Systems is striving to emerge from a bottoming pattern, backed by substantial trading activity as seen in the volume.

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

 

HDSN – Hudson Technologies, Inc.

Hudson Technologies is poised for an upward trajectory, having recently attained a 52-week high. Following this milestone, the stock has spent the last five days consolidating, setting the stage for a potential continuation of the uptrend.

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

 

HOOD – Robinhood Markets Inc.

Robinhood Markets is poised for a 52-week high breakout, fueled by a robust volume profile.

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

 

HTGC – Hercules Capital, Inc.

Hercules Capital seems to be breaking out of a substantial multi-month consolidation pattern, indicating potential upward movement.

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

 

IBM – International Business Machines

IBM is consolidating in what appears to be a bullish pennant continuation pattern.

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

 

MUSA – Murphy USA Inc.

Murphy is positioning itself just below its new all-time high; it’s worth monitoring for any signs of potential upside momentum.

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

 

SPG – Simon Property Group, Inc.

Simon Property Group is making an effort to break out from a consolidation zone situated not far below its recent all-time high. Keep an eye out for any indications of potential upward momentum.

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

 

SUM – Summit Materials Inc.

Summit Materials is breaking out from a substantial basing pattern, with the move backed by notable volume, indicating potential upward momentum. Keep an eye on further developments.

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

 

VIST – Vista Oil & Gas SAB

Vista Oil & Gas is attempting to break out to a new all-time high from a consolidation zone. Keep a watchful eye for potential signs of upward momentum in the coming sessions.

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

 

WDOFF – Wesdome Gold Mines Ltd.

Wesdome Gold Mines is ongoing in its setup on the right side of its bottoming base, suggesting potential developments for upward momentum. Monitor closely for confirmation.

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

 

Canadian Daily Setups

BOS.TO – AirBoss of America Corp.

AirBoss of America continues to register on momentum scans as its price action endeavors to ascend from a bottom pattern. Stay vigilant for further indications of potential upward movement.

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

 

CM.TO – Canadian Imperial Bank Of Commerce

CIBC is attempting to ascend from a bull flag continuation pattern. Keep a close eye on potential signs of further upward movement.

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

 

CS.TO – Capstone Copper Corp

Capstone Copper has set up on the right side of a substantial multi-year consolidation pattern. In technical analysis, the adage “the bigger the base, the higher the space” holds true. Keep a watchful eye for any potential signals indicating a breakout.

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

 

CXB.TO – Calibre Mining Corp.

Calibre Mining seems to be breaking out from the pattern we’ve been observing. Monitor for confirmation.

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

 

IVN.TO – Ivanhoe Mines Ltd.

Ivanhoe Mines is configured in the form of a potential bull flag continuation pattern. Keep a close watch for confirmation and potential upward momentum.

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

 

LUN.TO – Lundin Mining Corp.

Lundin Mining is making a move to break out from a substantial multi-year consolidation pattern.

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

 

NOU.V – Nouveau Monde Graphite Inc.

Nouveau Monde Graphite is potentially setting up for a bottoming pattern breakout, supported by robust volume.

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

 

OVV.TO – Ovintiv Inc

Ovintiv is attempting to break out from a falling wedge pattern. Keep a close eye on the price action for confirmation and potential upward movement.

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

 

PRYM.TO – Prime Mining Corp.

Prime Mining is configured in the form of a bull flag continuation pattern, positioned below a significant horizontal resistance line – watch for potential breakout signals near the trigger line.

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

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 – 2024-02-17

A, ABBNY, ABBV, ABT, ADP, AEM, AIT, AIZ, ALPN, AME, ANF, APLS, APP, AROC, ASND, ASR, ATR, AVY, AXP, BAC, BAESY, BAH, BAX, BCSF, BFST, BG, BITW, BRK/B, BRKR, BSBR, BUR, BWXT, BXP, BYRN, CACI, CAMT, CASH, CASY, CBZ, CCEP, CCI, CELH, CF, CFLT, CGBD, CHRD, CI, CLH, CLSK, CM, CME, CMI, CMS, CNC, CNP, COF, COPX, CQP, CRBG, CRH, CSAN, CSWI, CTLT, CTVA, CVS, D, DELL, DG, DHR, DKNG, DLTR, DOW, DRI, DSGR, DTE, DTM, DV, DVA, EAT, EBAY, EC, EL, ELV, EME, EMR, ENLC, ENSG, ENTG, EPAC, EPAM, EPD, EQT, ERIE, ES, ESE, ESOA, ESS, ET, ETN, ETR, ETRN, EW, FA, FCN, FE, FERG, FINMY, FIS, FITB, FIVE, FMC, FOUR, FTI, FWRG, GBDC, GCT, GDX, GDXJ, GE, GEHC, GIS, GNTX, GOLF, GSHD, GVA, HBAN, HCI, HD, HDSN, HESM, HII, HLNE, HLT, HOOD, HSBC, HSIC, HTGC, HUBB, HUBS, IBM, IBN, IDCC, IESC, IFF, IGIC, IHG, INTA, IP, IPAR, IPG, ITCI, ITRN, J, JHX, K, KB, KEYS, KMI, KNF, KNSL, KNTK, KOF, KR, KSPI, KTOS, KWR, LBRT, LDOS, LECO, LHX, LKQ, LLY, LNG, LNW, LPLA, LVS, MAIN, MAMA, MAR, MCD, MCK, MLM, MMYT, MNDY, MOH, MOS, MPLX, MPTI, MRK, MS, MTB, MUSA, NATR, NEM, NGS, NPO, NS, NTRA, NVO, NVT, O, OKE, OMC, ONTO, OXY, PAA, PAGP, PATK, PAX, PAYX, PBA, PBR, PBR/A, PCOR, PFE, PFGC, PG, PKG, PLD, PLUS, PM, PPL, PR, PRCT, PRI, PSN, PWP, QSR, RDY, RELX, REVG, RJF, ROAD, RRC, RSG, SAIC, SFM, SKWD, SLV, SM, SN, SOVO, SPG, SPOT, SPXC, STN, SUM, SUN, SWN, SYY, TAP, TBBK, TDY, TECH, TGT, THC, TJX, TKR, TNET, TNP, TPR, TPX, TRAK, TREX, TRGP, TRI, TRMB, TROW, TSN, UGP, ULTA, UPS, URBN, USAP, USFD, USO, VIST, VNOM, VNT, VOYA, VST, VTRS, VVV, WAT, WDOFF, WES, WING, WM, WMB, WMT, WRB, WRK, WSC, WSM, XLB, XLP, XLV, XOP, 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 – 2024-02-17

AAWH/U.CA, ABX.TO, ACT.CA, AEM.TO, AEP.V, AIF.TO, ALA.TO, AMC.TO, AMX.V, AMZN.NE, AND.TO, AQN.TO, ARIS.TO, ARX.TO, ATH.TO, ATRL.TO, AYA.TO, BAM/A.TO, BCE.TO, BDT.TO, BEI/UN.TO, BHC.TO, BIP/UN.TO, BIPC.TO, BIR.TO, BITF.TO, BK.TO, BN.TO, BNE.TO, BNS.TO, BOS.TO, BRK.NE, BTB/UN.TO, CAD.V, CAR/UN.TO, CAS.TO, CCA.TO, CDR.TO, CEU.TO, CF.TO, CGO.TO, CHE/UN.TO, CIA.TO, CIG.TO, CIGI.TO, CIX.TO, CM.TO, CNQ.TO, CNR.TO, CNX.V, CPG.TO, CPH.TO, CRON.TO, CRR/UN.TO, CRT/UN.TO, CS.TO, CSH/UN.TO, CSU.TO, CVS.NE, CWB.TO, CXB.TO, DBM.TO, DF.TO, DGS.TO, DIV.TO, DNTL.TO, DOL.TO, DRX.TO, ECO.TO, EDR.TO, EFX.TO, EFX.TO, EIT/UN.TO, EMP/A.TO, ENB.TO, ENS.TO, ERF.TO, ERO.TO, FCR/UN.TO, FFN.TO, FIL.TO, FM.TO, FN.TO, FOM.TO, FR.TO, FRU.TO, FSZ.TO, FTG.TO, GDV.TO, GEI.TO, GFL.TO, GMG.V, GTII.CA, H.TO, HBM.TO, HD.NE, HITI.V, HUT.TO, IFC.TO, IIP/UN.TO, ILLM.TO, IMG.TO, INO/UN.TO, IVN.TO, KEY.TO, KITS.TO, KMP/UN.TO, KNT.TO, KSI.TO, L.TO, LB.TO, LBS.TO, LEV.TO, LFE.TO, LGC.V, LI.V, LIF.TO, LLY.NE, LTH.V, LUG.TO, LUN.TO, MAG.TO, MDA.TO, MEG.TO, MFC.TO, MFI.TO, MI/UN.TO, MMED.NE, MRG/UN.TO, MRT/UN.TO, MRU.TO, MTA.V, MX.TO, NA.TO, NGEX.V, NGT.TO, NNRG.NE, NOU.V, NWC.TO, OGC.TO, OGI.TO, OLA.TO, OSK.TO, OVV.TO, PAAS.TO, PD.TO, PET.TO, PEY.TO, PFE.NE, PKI.TO, PLC.TO, POU.TO, POW.TO, PPL.TO, PRMW.TO, PRYM.TO, PSLV.TO, PTK.V, QBR/B.TO, QSR.TO, RCH.TO, RCI/B.TO, RECO.V, RSI.TO, SES.TO, SGY.TO, SIA.TO, SLF.TO, STC.TO, STEP.TO, STLC.TO, STN.TO, SVI.TO, T.TO, TBL.TO, TCL/A.TO, TCW.TO, TD.TO, TF.TO, TFII.TO, TLRY.TO, TNZ.TO, TOI.V, TOU.TO, TOY.TO, TRI.TO, TRP.TO, TSU.TO, TXG.TO, VGCX.TO, VHI.TO, VNP.TO, WCN.TO, WDO.TO, WED.V, WEED.TO, WJX.TO, WN.TO, WSP.TO, YGR.TO, ZZZ.TO

 

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