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
Tech Surge Drives S&P 500 to Record Highs Amid Semiconductor Resurgence
Before we begin, I’m delighted to fulfill the requests of several members who were eager to hear my talk at the CATA. The Canadian Association for Technical Analysis hosts weekly meetings with distinguished speakers, many of whom are familiar faces from television and literature in the field. If you’re keen on technical analysis and considering membership, you can catch the replay of my talk by following this link: https://canadianata.ca/ or watch it below. Enjoy the insights and discussions shared during this engaging event! Now, let’s dive into the report.
In a robust session on Friday, a rally in technology stocks catapulted the S&P 500 to an unprecedented peak. The surge was led by shares of tech companies, fueled by an optimistic earnings report earlier in the week from chip manufacturer Taiwan Semiconductor Manufacturing Company. This, in turn, revitalized semiconductor stocks, including recent ideas such as Nvidia, Advanced Micro Devices, and Broadcom, with the SMH Semiconductor ETF gaining nearly 4% as outlined in Thursday’s setups report.
Semiconductor ETF – Daily Chart
The S&P 500 surged 1.23% to 4839.81, ending a streak of over 500 trading sessions without reaching a new record, as it broke out from the continuation pattern highlighted on Thursday.
S&P 500 – Daily Chart
The Dow Jones Industrial Average reached a milestone, gaining 395 points or 1.05%, closing at 37863.80, with price action rebounding from the 21-day exponential moving average.
Dow Jones Industrial Average – Daily Chart
The Nasdaq Composite, spearheaded by tech companies, surged 1.7% or 255.32 points, as price action broke out from the continuation pattern highlighted in Thursday’s report.
Nasdaq – Daily Chart
The Russell 2000, representing small-cap stocks, dipped 0.41% for the week, yet rebounded notably from its 10-week or 50-day moving average following a bull flag retest.
Russell 2000 (ETF) – Weekly Chart
Examining the red-light/green-light breadth system, the current stock market rally diverges from the broad-based advance observed in late 2023. Notably, technology stocks and some other leaders are separating from small caps and specific sectors. However, market leadership remains robust, providing new buying opportunities, as observed in daily setups with some of our best setups consistently extending gains. It is crucial to recognize that market conditions can allow for continued advancement even when breadth indicators are weak. Therefore, investors should avoid fixating too much on a single indicator and instead adhere to a trusted plan. This involves remaining positioned in strong stocks while implementing a stop-loss to exit the trade if the market falters.
The Red-Light/Green-Light Breadth System
Simultaneously, the 10-year Treasury yield surged by 20 basis points to 4.16%, and the two-year Treasury yield, closely tied to Federal Reserve policy, soared 27 basis points to 4.41%. Despite these shifts in Treasury yields and diminishing rate-cut hopes, their impact on the market rally has been limited, but they warrant close monitoring.
10-Year US Treasury Yield
On Friday, the US dollar experienced a slight dip, marking a pause in its five consecutive sessions of gains. Nevertheless, it remains on track for a weekly climb within the parameters of a bull flag retest setup. This trajectory comes in response to recent economic data and statements from Federal Reserve officials, which have tempered expectations for swift cuts in interest rates. Notably, market observers are urged to pay attention to the price action, as the chart pattern mirrors aspects of the 10-year US Treasury yield.
US Dollar – Weekly Chart
Crude oil seems to be forming a potential setup off the support line we’ve been monitoring, as we keep an eye out for signs of upside momentum.
Crude Oil – Weekly Chart
Canada’s main stock index staged a Friday rally, reclaiming much of its weekly loss as it bounced back from the 50-day or 10-week moving average. Rising optimism about a soft economic landing bolstered financial and real estate shares. The TSX composite index closed up 149.79 points, or 0.7%, at 20,906.52. Despite a weekly decline of 0.4%, it marked a recovery after achieving its highest weekly closing level in 21 months the previous Friday.
TSX – Weekly Chart
The price of copper has flagged down to a support line, holding and closing the week positively. Monitor this level for signs of potential upside momentum, and keep an eye on the copper watchlist, where some promising setups have emerged.
Copper – Weekly Chart
The price action of gold is forming a flag at the breakout line below its all-time highs, signaling anticipation for a directional breakout. Stay tuned for further developments.
Gold – Weekly Chart
The uranium theme underwent a week of consolidation, with potential bull flags emerging on certain charts. Keep a close watch on the daily setups for signs of their emergence.
Uranium Theme – Global X Uranium ETF
Bitcoin displays a lack of urgency as its price action remains trapped below a substantial volume-by-price resistance line and the 50-day moving average. A bullish stance may be warranted once price action reclaims the resistance line.
Bitcoin – Daily Chart
Ethereum continues to consolidate in what seems to be a bull flag formation above the recent breakout line.
Ethereum – Daily Chart
The potential US cannabis theme remains noteworthy, with the ETF experiencing increased volume as price action sets up for a potential bottoming base breakout. Keep a close eye on developments in this space.
The Potential US Cannabis Theme
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.
Reviewing what worked last week, defensive sectors underperformed, while offensive sectors, particularly technology, demonstrated notable strength, aligning with our daily setups report. The strategy is to enter stocks close to trigger points or early entries, enabling the implementation of a tight stop-loss order. Successful investing requires discipline to avoid buying extended stocks and diligent preparation of watchlists to seize opportunities when others are distracted by major index movements. As earnings season approaches, especially for potential technology setups, it is crucial to be aware of reporting dates. Holding stocks through earnings reports becomes akin to a gamble due to the risk of lower gaps. With the market rallying into earnings season, caution is warranted to manage expectations and mitigate the risk of adverse market reactions.
What Worked Last Week
US Daily Setups
AAPL – Apple, Inc.
Apple seems to be forming a cup-with-handle-type continuation pattern. Keep a close watch for the potential resumption in upside strength.
LINK TO CHART – https://schrts.co/ZgByfXsr
ABNB – Airbnb Inc.
Airbnb is appearing on momentum scans as price action sets up, working its way toward the apex of a significant consolidation pattern.
LINK TO CHART – https://schrts.co/uMUhgXTH
AER – AerCap Holdings NV
AerCap is making a push for a new all-time high breakout, successfully clearing all overhead resistance.
LINK TO CHART – https://schrts.co/KKzaIkPX
AMD – Advanced Micro Devices, Inc.
The Advanced Micro Devices setup continues to breakout with bullish volume.
LINK TO CHART – https://schrts.co/cxAkAvDc
AMZN – Amazon.com, Inc.
Amazon is establishing itself on the right side of a substantial basing pattern just below its multi-month high. Keep an eye on it for potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/YeCusmmU
AXON – Axon Enterprise, Inc.
Axon appears poised for a breakout from a continuation pattern below its all-time high. Keep a close watch for the potential continuation of upside strength.
LINK TO CHART – https://schrts.co/ZDmkSBBI
BELFB – Bel Fuse, Inc.
Bel Fuse seems to have successfully retested the recent breakout line within the framework of a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/cbHCdzYe
DDOG – Datadog Inc.
The recently highlighted Datadog setup continues to work on its breakout.
LINK TO CHART – https://schrts.co/FVQysdjq
DT – Dynatrace Inc.
Dynatrace is attempting to breakout from a multi-month consolidation pattern.
LINK TO CHART – https://schrts.co/ctjykbJs
GOOGL – Alphabet Inc.
The Alphabet setup is continuing its breakout.
LINK TO CHART – https://schrts.co/ajhaFAvg
GSIW – Garden Stage Ltd.
Garden Stage is attempting to breakout from an IPO base.
LINK TO CHART – https://schrts.co/FUxKbIBz
LRN – Stride Inc.
Stride is positioned for a potential breakout to new highs, supported by a bullish volume profile.
LINK TO CHART – https://schrts.co/QVSvaFuJ
MSFT – Microsoft Corp.
Microsoft is continuing its ascent.
LINK TO CHART – https://schrts.co/WyyDFsxh
NET – Cloudflare Inc.
Cloudflare seems to have successfully retested the recent breakout line in the form of a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/IqcImRTb
PLAB – Photronics, Inc.
Photronics is attempting a bull flag breakout.
LINK TO CHART – https://schrts.co/njfmAkbW
SMH – VanEck Vectors Semiconductor ETF
The VanEck Vectors Semiconductor ETF, highlighted on Thursday, is experiencing a breakout with the sector, encompassing recent ideas like NVDA, AMD, and AVGO.
LINK TO CHART – https://schrts.co/JSjkbZPA
TREX – Trex Co., Inc.
Trex appears to be setting up below 52-week highs. Monitor for a potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/BenIgGcJ
Canadian Daily Setups
BN.TO – Brookfield Corp.
Brookfield appears poised for a potential breakout in a bullish pennant continuation pattern.
LINK TO CHART – https://schrts.co/BhiYytMv
CDR.TO – Condor Energies Inc.
The Condor Energies setup has seen another day of increase volume.
LINK TO CHART – https://schrts.co/cBfTWfFG
GSY.TO – goeasy Ltd.
goeasy is attempting a 52-week high breakout from a bullish continuation pattern.
LINK TO CHART – https://schrts.co/utYxidsp
PHX.TO – PHX Energy Services Corp.
PHX Energy Services is threatening a 52-week high breakout.
LINK TO CHART – https://schrts.co/YSVKnvDF
SIS.TO – Savaria Corp.
Savaria is set up for a potential bottoming pattern breakout.
LINK TO CHART – https://schrts.co/drCcrtxG
TCW.TO – Trican Well Service Ltd.
Trican Well Service continues to consolidate below the upper trendline of a consolidation/continuation wedge. Monitor for a potential breakout.
LINK TO CHART – https://schrts.co/AWJnVqwh
TRUL.CA – Trulieve Cannabis Corp.
Trulieve Cannabis continues to set up on the right side of a bottoming pattern. Monitor for a potential breakout.
LINK TO CHART – https://schrts.co/wHYNphHs
U/UN.TO – Sprott Physical Uranium Trust
The Sprott Physical Uranium Trust seems to be consolidating in a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/RSJpYFbX
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 – 2024-01-20
AAPL, ABBV, ABNB, ABT, ACA, ACGL, ACIW, ACMR, ACN, ADBE, ADEA, ADI, ADP, ADSK, AEL, AER, AFL, AFRM, AFYA, AGO, AGYS, AIG, AIT, AJG, AKAM, ALG, ALGN, ALLE, ALPN, ALSN, ALTR, AMAL, AMAT, AMD, AMGN, AMP, AMR, AMWD, AMZN, ANET, ANF, ANSS, AON, AOS, APH, APO, ARCB, ARCH, ARCO, ARES, ARM, AROC, ASML, ATEYY, ATGE, ATR, AVGO, AVY, AWI, AX, AXON, AYI, AZEK, AZO, AZZ, BA, BAESY, BAM, BCC, BCO, BDX, BECN, BELFB, BFST, BIIB, BK, BKNG, BLBD, BLD, BLDR, BLK, BPOP, BR, BRC, BRK/B, BRO, BRZE, BTU, BUR, BVN, BYRN, CACI, CARR, CASH, CASY, CAVA, CB, CBAY, CBRE, CBZ, CCEP, CCL, CCOI, CCS, CDNS, CDRE, CDW, CEG, CEIX, CENT, CFB, CFG, CGBD, CHCO, CHE, CHRW, CHTR, CIEN, CINF, CL, CLH, CLS, CMA, CMCSA, CMG, CNM, CNO, COO, COOP, CORZQ, COST, CPLP, CPRT, CPS, CPT, CR, CRBG, CRESY, CRH, CRL, CRM, CRVL, CRWD, CSCO, CSTM, CTAS, CTLT, CTSH, CUBI, CUK, CVLT, CVNA, CXT, CYBR, CZR, DASH, DAVA, DBX, DCI, DDOG, DECK, DELL, DFH, DHI, DHR, DIS, DKS, DLR, DOCU, DOV, DSGR, DSGX, DT, DXCM, EADSY, EG, ELTK, EMR, ENTG, EPD, EQIX, EQR, ESAB, ESE, ESOA, ESTC, ET, ETHE, ETN, EVR, EXP, FA, FAST, FBIN, FBP, FCFS, FCNCA, FERG, FI, FIVN, FLEX, FLS, FLT, FMX, FN, FNF, FOR, FOUR, FOX, FRO, FROG, FRPT, FRT, FSV, FTAI, FTI, FTV, FWRG, GBTC, GDRZF, GE, GEN, GFF, GGG, GIB, GILD, GL, GLOB, GLW, GM, GMS, GOLF, GOOG, GOOGL, GPC, GPN, GRBK, GRMN, GS, GSHD, GSIW, GTLB, GWRE, H, HBAN, HCA, HCC, HD, HEES, HG, HIG, HLNE, HLT, HMC, HON, HRB, HRI, HST, HUBB, HUBS, HWM, IBCP, IBKR, IBM, IBN, IBOC, IBP, ICLR, IDCC, IHG, IHI, IIPR, ILMN, INCY, INFA, ING, INTA, INTC, INTU, INVH, IOT, IP, IQV, IR, IRM, ISRG, ITA, ITB, ITGR, ITRI, ITT, ITW, IWF, IWM, JBI, JHX, JKHY, JNJ, JNPR, JOE, JPM, KAI, KD, KEYS, KKR, KLAC, KOP, KRE, L, LAD, LECO, LEN, LII, LLY, LOGI, LOW, LPG, LPLA, LRCX, LRN, LSEA, LSPD, LULU, LYV, MA, MAA, MAIN, MANH, MAR, MBC, MBIN, MCD, MCHP, MCO, MDB, MDT, MEDP, MELI, MET, META, METV, MHO, MLI, MMM, MMYT, MNDY, MORN, MPC, MPLX, MPWR, MRK, MSCI, MSFT, MSI, MSM, MSOS, MTB, MTD, MTH, MTSI, MU, NBIX, NDAQ, NDSN, NET, NGS, NHC, NMIH, NOA, NRG, NSIT, NTAP, NTNX, NU, NVDA, NVMI, NVS, NVT, NWSA, NX, NXPI, NXT, NYT, ODD, ODFL, ODP, ONTO, ORCL, ORLY, OSIS, OSK, OTEX, OTIS, OTTR, OZK, PAA, PAGP, PAM, PARA, PATK, PAYX, PBA, PCAR, PCOR, PDD, PEAK, PFBC, PH, PHM, PLAB, PLD, PLMR, PLTR, PLUS, PNC, PNR, PRI, PRU, PSTG, PSX, PTC, PWSC, PYPL, QCOM, QQQ, QRVO, RACE, RBC, RCL, RDNT, REGN, RELX, RF, RHI, RHP, RJF, RMBS, ROK, ROL, ROP, RSG, RSP, RVTY, RYAAY, SAIA, SAIC, SAP, SCCO, SHOP, SKX, SLB, SMAR, SMCI, SMH, SNA, SNAP, SNOW, SNPS, SNX, SOVO, SPGI, SPSC, SPXC, SPY, SQSP, SRUUF, STE, STLD, STN, STX, SUM, SWK, SWKS, SXC, T, TBBK, TDY, TEAM, TEL, TER, TEX, TFC, TGLS, TGS, TJX, TM, TMHC, TMO, TMUS, TNK, TOL, TRAK, TREX, TRMB, TRNS, TROW, TRV, TSCO, TSM, TSQ, TTWO, TWLO, TXN, TXT, TYL, UBER, UDR, UGP, UHS, UNP, UPBD, URBN, URI, USAC, V, VECO, VERX, VGT, VIST, VNT, VOYA, VRRM, VRSK, VRSN, VRT, VRTS, VRTX, VST, VTR, VTSI, VZ, WAB, WAL, WAT, WBS, WDAY, WDC, WDOFF, WFC, WIX, WM, WMS, WOR, WRB, WTFC, WTW, WWD, XHB, XLC, XLF, XLI, XLK, XLRE, XLY, XP, XRX, XYL, YUM, Z, ZG, ZION, 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 – 2024-01-20
AAPL.NE, AAWH/U.CA, ACO/X.TO, ADBE.NE, AFN.TO, AGF/B.TO, AI.TO, AIM.TO, AMD.NE, AMZN.NE, ARE.TO, ARR.TO, ASE.CA, ATD.TO, ATD/A.TO, ATS.TO, ATZ.TO, AVGO.NE, AX/UN.TO, AYA.TO, AYR/A.CA, BA.NE, BAM.TO, BAM/A.TO, BB.TO, BBU/UN.TO, BDGI.TO, BDI.TO, BEI/UN.TO, BIP/UN.TO, BIPC.TO, BK.TO, BLN.TO, BLX.TO, BMO.TO, BN.TO, BNS.TO, BPF/UN.TO, BRK.NE, BRM.V, BYD.TO, CAS.TO, CDR.TO, CF.TO, CHE/UN.TO, CHP/UN.TO, CIG.TO, CIGI.TO, CIX.TO, CL.CA, CLS.TO, CNR.TO, COST.NE, CP.TO, CPLF.TO, CRM.NE, CRR/UN.TO, CRT/UN.TO, CSU.TO, CTC/A.TO, CTS.TO, CU.TO, CURA.TO, CVO.TO, DF.TO, DFN.TO, DFN/PA.TO, DFY.TO, DGS.TO, DIR/UN.TO, DIS.NE, DRX.TO, DSG.TO, ECN.TO, EFN.TO, ENS.TO, ERE/UN.TO, ETHH.TO, EU.V, EXE.TO, FC.TO, FCR/UN.TO, FFH.TO, FFN.TO, FIL.TO, FN.TO, FOM.TO, FSV.TO, FSZ.TO, FTN.TO, FTT.TO, GCL.TO, GDV.TO, GIB/A.TO, GOOG.NE, GPAC.V, GPH.V, GRT/UN.TO, GSY.TO, GTII.CA, GUD.TO, H.TO, HBM.TO, HITI.V, HOM/UN.TO, HPS/A.TO, HR/UN.TO, IBM.NE, IFC.TO, IGM.TO, IIP/UN.TO, INTC.NE, IVN.TO, JPM.NE, KMP/UN.TO, KXS.TO, LB.TO, LCS.TO, LMN.V, LNR.TO, LSPD.TO, MATR.TO, MFG.V, MFI.TO, MI/UN.TO, MKP.TO, MRE.TO, MRU.TO, MSFT.NE, MTL.TO, MVRS.NE, NA.TO, NGEX.V, NOA.TO, NPI.TO, NTR.TO, NVDA.NE, NWC.TO, NWH/UN.TO, NXR/UN.TO, OGC.TO, OGI.TO, ONEX.TO, OTEX.TO, PAY.TO, PD.TO, PET.TO, PHX.TO, PHYS.TO, PKI.TO, PLTH.CA, PLZ/UN.TO, PMZ/UN.TO, POW.TO, PRV/UN.TO, PSI.TO, PTO/UN.TO, PYPL.NE, QTIP.NE, RBN/UN.TO, RCI/B.TO, REI/UN.TO, RY.TO, SCR.TO, SGR/UN.TO, SHOP.TO, SIA.TO, SIS.TO, SJ.TO, SLF.TO, SPB.TO, SVI.TO, T.TO, TCL/A.TO, TD.TO, TECK/B.TO, TER.CA, TF.TO, TGO.TO, TOI.V, TROY.CA, TRUL.CA, TSND.TO, TSU.TO, U/U.TO, U/UN.TO, VGCX.TO, VISA.NE, VNP.TO, VRNO.NE, WCN.TO, WELL.TO, WFG.TO, WSP.TO, WUC.CA, X.TO, ZZZ.TO
