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 Volatile Week Ends with Record Highs
This week lived up to expectations of heightened volatility, culminating in record closes for both the Dow and the S&P 500 on Friday. The surge in stock prices marked the conclusion of a tumultuous period dominated by Big Tech earnings. While the market appears extended and shows signs of a potential negative divergence, it’s crucial to emphasize the significance of adhering to a robust trading plan. Media distractions, with some attempting to predict market tops or bottoms, should not sway investors focused on strategic trading.
It is worth noting that optimal stock setups often precede index alignment, and a well-executed stop-loss strategy ensures a secure exit. Scaling out becomes imperative during parabolic moves, preventing overexposure. However, caution is warranted against pundits seeking ‘I told you so’ moments, especially when their performance rarely outshines the benchmark. This approach not only shields investors from unnecessary noise but also provides a clear exit strategy, countering premature bullish signals or top callers aiming for the same self-congratulatory posture.
When reviewing the Red-Light/Green-Light Breadth System the ongoing stock market rally could be characterized by weak breadth but strong leadership, especially in the AI sector. While some buying opportunities emerged late in the week and new stocks are setting up, numerous leaders are significantly extended, which urges caution.
The Red-Light/Green-Light Breadth System
All three major indexes closed the week with gains. The Dow Jones Industrial Average registered a 0.4% daily increase and a weekly return of 1.43%. The S&P 500 rose by 1.1%, securing a 1.4% gain for the week, while the Nasdaq Composite posted a 1.7% daily increase, resulting in a weekly gain of 1.1%. However, the small-cap Russell 2000 experienced a 0.8% decline for the week, rejecting the recent breakout line but finding support at the 10-week or 50-day moving average. By observing how the three major indexes confidently walk above their 10-week moving averages, it’s a testament to the power of systematic trading. By adhering to established rules and trusting the guidance of these key moving averages, one can navigate the market with discipline, free from emotional interference or outside speculative guesswork.
Dow Jones Industrial Average – Weekly Chart
S&P 500 – Weekly Chart
Nasdaq – Weekly Chart
Russell 2000 (ETF) – Weekly Chart
The 10-year Treasury yield experienced a notable decrease of 12.7 basis points, closing the week at 4.033%. This decline came in contrast to Friday’s 17 basis-point surge, triggered by the positive jobs report. The candle on the chart rebounded off the breakout line we’ve been monitoring. Concerns about regional banks exerted downward pressure on long-term Treasury yields. In contrast, the two-year Treasury yield, closely linked to Fed policy, showed minimal changes.
10-Year US Treasury Yield
The U.S. dollar is currently presenting an extremely bullish setup, as the index surged to a seven-week high in a broad rally on Friday. This momentum was fueled by the release of data indicating that employers added far more jobs in January than expected. The robust job market performance has diminished the likelihood of near-term Federal Reserve interest rate cuts, contributing to the dollar’s strong position.
US Dollar – Weekly Chart
U.S. crude oil futures took a hit as they rejected the potential breakout line, plummeting by 7.35% to $72.28 a barrel last week due to demand worries and hopes for a ceasefire between Israel and Hamas.
Crude Oil – Weekly Chart
Canada’s commodity-linked main stock index faced headwinds on Friday, closing lower as stronger-than-expected U.S. employment data reduced expectations for Federal Reserve interest rate cuts, consequently strengthening the U.S. dollar. The TSX composite ended down 34.12 points, marking a 0.16% decline to 21,085.09 for the day and contributing to a weekly loss of 0.19%. The TSX’s performance was notably impacted by weakness in commodity markets, especially as the energy and mining sectors got hammered. The decline in these sectors was exacerbated by the strength of the U.S. dollar. Emphasizing the bullish U.S. dollar setup highlighted above.
TSX – Weekly Chart
The price of copper faced a significant rejection at the potential breakout line, experiencing a notable setback.
Copper – Weekly Chart
The potentially bullish setup in gold, which was highlighted earlier in the week, faced a substantial rejection due to the strength observed in the U.S. dollar.
Gold – Weekly Chart
The uranium theme wrapped up another week of bullish price action, marked by robust volume and adherence to system rules. This consistent performance indicates a strong and disciplined market trend.
Uranium Theme – Global X Uranium ETF
Bitcoin’s price action is encountering resistance at both the underside of horizontal resistance and the 50-day moving average. The current chart setup presents a binary event. Remaining below the 50-day moving average indicates a bearish or negative technical signal. On the other hand, a move above the horizontal resistance line and the 50-day moving average would be considered bullish.
Bitcoin – Daily Chart
The U.S. Cannabis theme continues to show strength, though Friday’s candle may suggest signs of exhaustion.
U.S. Cannabis theme – MSOS U.S. Cannabis ETF
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.
When evaluating last week’s market performance, the S&P 500 sectors displayed mixed results on Friday. Communication services, technology, and consumer discretionary sectors exhibited strength, while real estate and energy faced challenges. The robust performance of the industrial sector highlights the importance of reviewing watchlists on the website for promising charts. However, caution is warranted as indexes show signs of extension and potential negative divergences. Utilizing the weekend is crucial for reviewing positions, identifying underperformers for strategic adjustments, assessing potential profit-taking opportunities, and identifying new ideas to watch in the upcoming week. Make sure to go over daily setups and scanner results for a well-informed strategy that allows for adaptability in response to evolving market conditions.
What Worked Last Week
US Daily Setups
BYRN – Byrna Technologies Inc
The Byrna Technologies setup shared last week is now breaking out above the trigger line with increased volume. Monitor for confirmation and potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/VqfcbVjf
DLTR – Dollar Tree, Inc.
Dollar Tree is potentially setting up on the right side of a significant bottoming pattern. Monitor closely for signs of a continuation of upside strength that may lead to a potential breakout.
LINK TO CHART – https://schrts.co/racfXCUB
MDB – MongoDB, Inc.
MongoDB is setting up on the right side of a significant multi-month basing pattern. Keep a close eye for potential confirmation and a breakout.
LINK TO CHART – https://schrts.co/cCqEeCPc
SNOW – Snowflake Inc.
Snowflake appears to be breaking out from its significant basing pattern, as consistently highlighted. Monitor closely for confirmation and potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/qhUysHxc
SNPS – Synopsys, Inc.
The Synopsys setup is now breaking out from a bullish continuation pattern and another horizontal line of resistance. Keep a close watch for confirmation and potential continuation of the upward trend.
LINK TO CHART – https://schrts.co/rABjpmyN
XP – XP Inc
XP continues to consolidate on the right side of a significant multi-month basing pattern. Monitor closely for potential breakout signals.
LINK TO CHART – https://schrts.co/VzbVDPJe
Canadian Daily Setups
KXS.TO – Kinaxis Inc.
Kinaxis appears to be coiling tightly at a significant trigger line. Monitor closely for any signs of a potential breakout.
LINK TO CHART – https://schrts.co/GNwfIGmY
LUN.TO – Lundin Mining Corp.
Lundin Mining appears to be consolidating in a tight range on the right side of a significant multi-month consolidation pattern. Monitor closely for any signs of upside momentum.
LINK TO CHART – https://schrts.co/MxDMJKty
MTY.TO – MTY Food Group Inc.
MTY Food Group appears to be setting up on the right side of a consolidation pattern. Monitor closely for any signs of upside strength.
LINK TO CHART – https://schrts.co/sqqjDFiW
PKI.TO – Parkland Fuel Corp.
Parkland Fuel is attempting to continue its uptrend as price action threatens another new 52-week high breakout.
LINK TO CHART – https://schrts.co/caWXKKvI
SII.TO – Sprott Inc.
The Sprott setup continues to attempt its bottoming base breakout.
LINK TO CHART – https://schrts.co/yvSCAynp
U/UN.TO – Sprott Physical Uranium Trust
The Sprott Physical Uranium Trust is the gift that keeps on giving as price action sets up below another new 52-week high with robust volume.
LINK TO CHART – https://schrts.co/RqywecTi
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 – 2024-02-04
AAPL, AAL, AAON, ABBNY, ABNB, ACA, ACGL, ACM, ACN, ADBE, ADEA, ADI, ADP, ADSK, AEL, AEO, AER, AGO, AIG, AIR, AIT, AKAM, ALG, ALGN, ALL, ALLE, ALSN, ALTR, ALV, AMAT, AMD, AME, AMP, AMZN, ANF, ANSS, APG, APH, APO, APOG, APP, APPF, ARCB, ARES, ASML, ASR, ATEYY, ATR, AVDX, AVGO, AWI, AXON, AXP, AYI, AZEK, AZO, AZZ, BAC, BAH, BALL, BAM, BBVA, BBWI, BBY, BCC, BECN, BITO, BITW, BK, BKNG, BLD, BLDR, BLK, BLOK, BPOP, BRBR, BRC, BRK/B, BRZE, BWXT, BX, BYRN, CACI, CAMT, CARG, CARR, CASY, CAT, CAVA, CB, CCS, CDNS, CDW, CECO, CEG, CELH, CFG, CHE, CHKP, CI, CIEN, CINF, CLH, CMG, CMI, CNM, COF, COOP, COST, CPA, CPLP, CPRT, CRH, CRM, CRSP, CRWD, CSL, CSTM, CSWC, CSWI, CSX, CTAS, CTLT, CTSH, CVLG, CVLT, CVX, CW, CWAN, CXT, CYBR, DAL, DASH, DAY, DB, DBX, DCI, DDOG, DE, DECK, DELL, DFIN, DFS, DG, DHI, DHR, DIS, DKNG, DKS, DLR, DLTR, DOV, DRI, DSGR, DSGX, DT, DV, DY, EADSY, EBAY, ECL, EDU, EFX, EG, ELF, ELTK, EME, ENSG, ENTG, EPAM, ESAB, ESE, ESOA, ESTC, ETN, ETSY, EVR, EW, EXP, EXPE, F, FA, FAST, FBP, FCNCA, FCX, FDS, FERG, FI, FICO, FITB, FIX, FLR, FLS, FLT, FMX, FN, FNF, FOUR, FRHC, FROG, FRPT, FSS, FTAI, FTNT, FTV, GBDC, GBTC, GBX, GCT, GDYN, GE, GEOS, GGG, GIB, GLOB, GLP, GLW, GM, GMS, GNRC, GNTX, GOLF, GPS, GS, GSK, GTLB, GWRE, GWW, H, HAYN, HBAN, HDSN, HEES, HEI, HES, HESM, HIBB, HIG, HII, HLNE, HLT, HOLI, HQY, HRI, HSIC, HTGC, HUBB, HUBS, HWM, IBKR, IBOC, IBP, IDT, IDXX, IEX, IHI, INFA, INTA, INTU, IOT, IPAR, IPG, IR, IRM, ISRG, IT, ITA, ITB, ITGR, ITRI, ITT, ITW, IWF, J, JBHT, JBI, JBL, JHX, JPM, KAI, KD, KEY, KEYS, KKR, KLAC, KNF, KOF, KRT, L, LDOS, LECO, LEN, LIN, LINC, LLY, LMB, LOW, LPLA, LRCX, LSPD, LUV, LW, LZB, MAIN, MANH, MAR, MCD, MCK, MDB, MEDP, MELI, META, METV, MGM, MGRC, MLI, MLM, MMYT, MNDY, MPTI, MPWR, MS, MSFT, MSI, MSM, MSOS, MTRN, MU, MUSA, MYRG, NCLH, NDSN, NET, NFLX, NICE, NOW, NPO, NRG, NS, NSIT, NSSC, NTAP, NTNX, NU, NVDA, NVMI, NVR, NVT, NWSA, NX, NXPI, NXT, OC, ODFL, OMC, ONTO, ORLY, OSK, OTIS, PAGS, PANW, PATH, PATK, PAYX, PCAR, PCOR, PFGC, PGR, PH, PINS, PLAB, PLTR, PLUS, PM, PNC, PNTG, POWL, PRCT, PRIM, PRU, PSN, PSTG, PWR, PWSC, PYPL, QQQ, QSR, RAMP, RBC, RBLX, RHP, RJF, RL, RMBS, ROAD, ROCK, ROP, ROST, RPD, RS, RSP, RUM, RUSHA, RWAY, RYAAY, S, SAIA, SAIC, SAP, SHOP, SHW, SMH, SNA, SNAP, SNOW, SNPS, SPOT, SPXC, SPY, SQ, SQSP, SRUUF, SSD, STLD, STN, STNE, STRL, STX, SUM, SUN, SXC, SYF, SYK, TBBK, TDG, TDY, TEL, TEX, TGLS, TGT, TIPT, TJX, TKR, TM, TMO, TNC, TPR, TRAK, TREX, TRGP, TRMB, TRNS, TROW, TRV, TSM, TT, TTEK, TTWO, TW, TXT, TYL, UBER, UBS, UHS, ULTA, UNP, URBN, URG, URI, VECO, VERX, VGT, VMC, VNOM, VNT, VRSK, VRT, VST, VSTS, VTRS, WAB, WDAY, WDC, WDFC, WDOFF, WEST, WFC, WING, WIRE, WMB, WMS, WMT, WOR, WRB, WSC, WSM, WST, WTW, XHB, XLC, XLF, XLI, XLK, XLY, XP, XYL, YELP, ZS
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 – 2024-02-04
ABXX.NE, AD/UN.TO, ADEN.TO, AI.TO, AKG.TO, AMD.NE, AMZN.NE, ARE.TO, ARIS.TO, ATRL.TO, ATS.TO, ATZ.TO, AVGO.NE, AYA.TO, BAM.TO, BBD/B.TO, BBU/UN.TO, BBUC.TO, BDI.TO, BIPC.TO, BNS.TO, BRK.NE, CDR.TO, CHEV.NE, CIX.TO, CL.CA, CLS.TO, CM.TO, CMG.TO, COST.NE, CP.TO, CPH.TO, CPLF.TO, CSH/UN.TO, CTC/A.TO, CTS.TO, CURA.TO, CVO.TO, DCM.TO, DIR/UN.TO, DIS.NE, DIV.TO, DND.TO, DOL.TO, DR.TO, DSG.TO, ECO.TO, EIF.TO, EMA.TO, EPRX.TO, ERE/UN.TO, FAR.TO, FDR.V, FFN.TO, FN.TO, FSV.TO, FSZ.TO, FTN.TO, FTT.TO, GAU.TO, GFL.TO, GIB/A.TO, GOLD.TO, GOLD.V, GRT/UN.TO, GTII.CA, GWO.TO, H.TO, HBM.TO, HD.NE, HDI.TO, HPS/A.TO, IAG.TO, IFC.TO, IGM.TO, ISO.V, JUSH.CA, KNT.TO, KXS.TO, L.TO, LLY.NE, LNR.TO, LSPD.TO, LUG.TO, LUN.TO, MAL.TO, MCB.TO, MDA.TO, MDP.TO, MFC.TO, MFI.TO, MRE.TO, MRG/UN.TO, MSFT.NE, MTL.TO, MTY.TO, MUX.TO, MVRS.NE, NEO.TO, NGD.TO, NGEN.V, NPR.V, NUAG.TO, NVDA.NE, NXR/UN.TO, OGC.TO, OLA.TO, ONEX.TO, OR.TO, PAY.TO, PBH.TO, PBY/UN.TO, PKI.TO, PLTH.CA, PLZ/UN.TO, PNRL.V, PRMW.TO, PYPL.NE, QSR.TO, RCI/B.TO, REAL.TO, RECO.V, RSI.TO, RUS.TO, SBC.TO, SHOP.TO, SIA.TO, SII.TO, SJ.TO, SLF.TO, SOY.TO, STEP.TO, STN.TO, SYZ.TO, TER.CA, TF.TO, TFII.TO, THNC.TO, TKO.TO, TOI.V, TRUL.CA, TSND.TO, TSU.TO, U/U.TO, U/UN.TO, UBER.NE, URE.TO, VHI.TO, VNP.TO, VRNO.NE, WCN.TO, WDO.TO, WJX.TO, WSP.TO, WTE.TO, X.TO
