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
Stocks Gain Ground Despite Tech Setback and Fed Anticipation Builds
Stocks posted gains for the week, bringing major indexes close to record highs, although the S&P 500 saw a pause in its five-day streak of setting fresh records due to a downturn in technology shares. Despite the apparent risks in the week ahead, the market continued its upward trend, albeit with a waning momentum toward the end of the week, triggered by the release of crucial inflation data.
Looking ahead, the Federal Open Market Committee is set to announce its monetary policy decision on Wednesday, with minimal expectations for a rate cut. Fed funds futures indicate less than a 50% chance of a rate reduction by Jerome Powell and his team in March. The impending statement from the Fed is anticipated to introduce volatility, a common occurrence on fed days.
On the earnings front, results have been a mixed bag. Tesla and Intel faced significant declines post-release, while others, such as Netflix, experienced soaring gains. In the upcoming week, investors will closely watch as Apple, Amazon, Microsoft, and Alphabet report. However, it’s crucial to note that holding through earnings remains a gamble due to the risk of a potential gap lower.
On Friday, the S&P 500 dipped 0.1%, while the Dow industrials edged up 0.2%, reaching a new high of 60 points. The Nasdaq Composite, heavily influenced by the tech sector, declined by 0.4%. Despite these daily fluctuations, all three indexes closed the week with gains: the Dow Jones Industrial Average rose 0.65%, the S&P 500 index increased by 1.1%, and the Nasdaq composite saw a 0.9% rise.
S&P 500 – Daily Chart
Nasdaq – Daily Chart
Dow Jones Industrial Average – Daily Chart
In a notable reversal, the small-cap Russell 2000 surged by 1.84% on the week, putting an end to a four-week slide as price action started to break out from the bull flag pattern highlighted in last weekend’s report.
Russell 2000 (ETF) – Weekly Chart
When examining the red-light/green-light breadth system, the moving averages are showing signs of attempting to trend higher.
The Red-Light/Green-Light Breadth System
In the bond markets, the yield on the 10-year Treasury note saw a marginal uptick, inching up from 4.131% to 4.160% since Thursday. It is imperative to note that bond yields ascend when prices decline. As we navigate the financial landscape, a compelling point of interest lies in the potential inverse correlation between the technology sector and the 10-year Treasury yield ($TNX), particularly with Fed Chair Powell set to speak. Observing whether tech stocks continue to react inversely to changes in the bond market remains an intriguing aspect, offering insights into broader market dynamics and investor sentiments.
10-Year US Treasury Yield
On Friday, the U.S. dollar edged lower following the release of data indicating a modest rise in December’s inflation, although the trend suggested a downward trajectory. This development is expected to maintain the Federal Reserve’s course toward a potential interest rate cut by the middle of the year. Despite this daily dip, the greenback appeared poised to mark four consecutive weeks of gains by the end of the week. The dollar index, a key measure of the currency against a basket of major counterparts, concluded the week up by 0.16% at 103.23.
US Dollar – Weekly Chart
U.S. crude oil futures experienced a robust surge, climbing by 6.5% to reach $78.01 per barrel, marking a two-month high. This significant uptick in price action has propelled the commodity higher from the support line that has been under close observation. Currently, there is a clear threat of a breakout above a key resistance level, as indicated on our technical analysis chart. This anticipated development aligns with our earlier analysis, which we have been emphasizing throughout the week. Notably, our daily setups reports today highlight many refinery names, complementing our earlier insights into other energy-related names.
Crude Oil – Weekly Chart
Canada’s primary stock index concluded the week on a positive note, driven by advances in technology and energy shares. The market continued its upward trajectory, contributing to the week’s gains that propelled the index to a 20-month high. Notably, there has been a concerted effort in price action to break out from a six-week consolidation pattern, following the ascent from the 50-day moving average (or 10-week moving average) observed last week. The TSX edged up by 23.74 points or 0.1%, closing at 21,125.28, representing its highest level since May 2022. Over the week, the index recorded a notable 1.0% increase, reflecting the positive sentiment and momentum in the Canadian stock market. Continued strength in the energy market would likely provide further support for the TSX.
TSX – Weekly Chart
Copper held the support line highlighted last week and is now breaking out from a bull flag consolidation. Explore emerging setups on the Copper Miner watchlist located on our website.
Copper – Weekly Chart
The price of gold continues to consolidate in the form of a bull flag retest of the breakout line. Keep a close eye for any signs of upside momentum that could signal a breakout.
Gold – Daily Chart
Bitcoin has experienced two consecutive positive days, and the current price action suggests a potential setup below horizontal resistance, as identified on the chart. This configuration introduces a binary event, where a decisive move above the 50-day moving average would be considered bullish. Conversely, a failure to reclaim this level would be viewed as bearish, keeping the price action below the 50-day moving average. Until a clear direction is established, the situation remains akin to flipping a coin and making speculative guesses. Monitoring the key moving average will be crucial for gauging Bitcoin’s short-term trajectory.
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 momentum in the stock market rally persists, fueled by robust economic data and generally positive earnings. However, a cautious tone is warranted as the Nasdaq approaches extended levels, and finding fresh setup ideas becomes more challenging. It’s prudent to closely monitor how the market responds to upcoming significant earnings and economic news. For those holding stocks with impending earnings announcements, strategic decisions such as taking partial profits, exiting positions, or holding should be carefully considered. Keep a keen eye on influential stocks like Apple, Microsoft, Meta, Amazon, and others, as their performance can have a ripple effect on individual holdings and the broader market. The risk of downward gaps during earnings dates underscores the need for a thoughtful approach. Remaining vigilant, adaptable, and unbiased is crucial as the coming days may unveil new setups and potential buying opportunities. Conversely, a negative market reaction to this week’s news could trigger sell signals, necessitating a well-prepared exit plan.
When examining what worked last week, a notable outperformance in the energy sector reflects our strategic focus on sector rotation. Our scanner results effectively capture these rotations, providing an advantage over mere predictions. Early in the week, we highlighted energy services and progressively added more energy names, particularly in the Canadian setups section. Today, refiners take the spotlight in our U.S. setups, showcasing the dynamic nature of our strategic approach.
What Worked Last Week
US Daily Setups
ABNB – Airbnb Inc.
The Airbnb setup is now attempting to break out from our highlighted pattern.
LINK TO CHART – https://schrts.co/fIpqAysk
ALSN – Allison Transmission Holdings, Inc.
Allison Transmission appears to be setting up on the right side of a significant basing pattern, situated below new highs.
LINK TO CHART – https://schrts.co/rXvPqdvb
CUBI – Customers Bancorp, Inc.
Customers Bancorp appears to be set up in the form of a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/eGjManvx
FRO – Frontline Ltd.
Frontline appears to be set up on the right side of a multi-month continuation pattern, located below its 52-week high.
LINK TO CHART – https://schrts.co/pwKgFZXH
HOV – Hovnanian Enterprises, Inc.
Hovnanian Enterprises is consolidating in the form of a potential continuation pattern, located below its 52-week high.
LINK TO CHART – https://schrts.co/BcbXENIP
NVO – Novo Nordisk A S
Novo Nordisk is setting up for a potential new all-time high as price action attempts to continue its upward trend.
LINK TO CHART – https://schrts.co/mKZTVbib
PARR – Par Pacific Holdings Inc.
Par Pacific appears to be setting up on the right side of a multi-month consolidation pattern. Monitor for the potential continuation of upside strength, which may lead to a breakout.
LINK TO CHART – https://schrts.co/ZhTmDSDq
PSX – Phillips 66
Phillips 66 is breaking out to a new all-time high.
LINK TO CHART – https://schrts.co/AKsuXjSS
VLO – Valero Energy Corp
Valero Energy is working its way toward the apex of a significant multi-year consolidation/continuation pattern. Monitor for the potential continuation of upside strength, which may lead to a breakout.
LINK TO CHART – https://schrts.co/zhMsVYUS
Canadian Daily Setups
CAD.V – Colonial Coal International Corp.
Colonial Coal is attempting to trend higher from a significant multi-year consolidation/continuation pattern.
LINK TO CHART – https://schrts.co/pyUHKFdb
CTS.TO – Converge Technology Solutions Corp.
Converge Technology appears to be set up in the form of a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/dAdHXmXz
CVE.TO – Cenovus Energy Inc.
The Cenovus Energy setup closed the week with more upside strength. Keep a close watch for a potential breakout.
LINK TO CHART – https://schrts.co/QJvxkjMg
ECO.TO – EcoSynthetix Inc.
EcoSynthetix is set up for a potential breakout from its significant multi-year falling wedge pattern.
LINK TO CHART – https://schrts.co/dXEwRsKM
FTT.TO – Finning Intl, Inc.
The Finning setup continues to experience more upside strength as price action chops higher.
LINK TO CHART – https://schrts.co/DMzggvCr
MEG.TO – MEG Energy Corp.
MEG Energy had another encouraging day on Friday. Keep a close watch for the potential continuation of upside strength.
LINK TO CHART – https://schrts.co/IdEcTunw
SU.TO – Suncor Energy, Inc.
Suncor Energy closed the week on a strong note. Keep a close watch for the continuation of upside strength.
LINK TO CHART – https://schrts.co/QjPxyvXR
TCW.TO – Trican Well Service Ltd.
Trican Well Service continues to ascend higher from its consolidation/continuation pattern.
LINK TO CHART – https://schrts.co/ujYUdTcQ
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 – 2024-01-27
ABBNY, ABNB, ACGL, ACIW, ACM, ADSK, AEO, AER, AFL, AFRM, AGM, AGO, AGYS, AIG, ALKT, ALPN, ALSN, ALV, AM, AMAL, AMCR, AMGN, AMR, AMWD, AMZN, ANET, ANF, APG, APO, APP, APPF, ARBK, ARCH, ARE, ARES, AROC, ASML, ASND, ATR, AWI, AX, AXP, AZO, AZZ, BAC, BAH, BALL, BAM, BBWI, BCC, BCSF, BFST, BITO, BITQ, BITW, BKNG, BLOK, BPOP, BRC, BRK/B, BRZE, BSX, BTU, BVN, BWXT, BX, CACI, CAPL, CARG, CB, CBAY, CBZ, CCAP, CCCS, CCEP, CCJ, CCOI, CDNS, CDW, CE, CEG, CENT, CF, CFB, CGBD, CHCO, CHD, CHKP, CHRW, CHTR, CL, CLH, CLS, CMCSA, CME, CMG, CMI, CNM, COF, COP, COST, CPB, CPLP, CQP, CRL, CRM, CSAN, CSGP, CSWC, CSX, CTLT, CUBI, CVI, CW, CWAN, CYBR, D, DAC, DASH, DDOG, DECK, DEFTF, DELL, DFS, DGHI, DHT, DINO, DIS, DK, DLR, DLTR, DMLP, DOCU, DPZ, DSGX, DT, DTM, DUK, DY, E, EA, EADSY, EBAY, EC, ED, EG, EGY, EHC, ELV, EME, ENLC, EPAM, EPD, ERIE, ESQ, ET, ETHE, ETRN, EXC, EXP, FBIN, FBP, FCFS, FCNCA, FI, FIS, FIX, FLR, FLT, FMX, FN, FOUR, FRHC, FRO, FRPT, FRSH, FSV, FTAI, FTI, FTNT, GBDC, GBTC, GCT, GDRZF, GE, GEL, GFF, GGG, GL, GLOB, GLP, GM, GMS, GNTX, GOOG, GOOGL, GPN, GPS, GWW, HAL, HBAN, HCC, HCI, HD, HES, HESM, HIBB, HII, HIVE, HLT, HLX, HMC, HNI, HOLI, HOV, HPQ, HRL, HST, HSY, HTBI, HTGC, HUBS, IBKR, IBN, IBOC, IBP, ICE, ICFI, IDT, IEX, IMO, INFA, ING, INSW, INTA, IPAR, ISRG, IT, ITA, IWF, J, JCI, JHX, JKHY, KD, KDP, KEY, KKR, KMI, KMX, KNF, KNTK, KO, KOF, KRE, KRT, LBRT, LECO, LII, LLY, LMB, LNG, LNT, LPLA, LSPD, MA, MAIN, MANH, MAS, MDLZ, MDT, MEDP, MELI, MET, METC, MHK, MKC, MKTX, MMYT, MNDY, MPC, MPLX, MRK, MSTR, MYRG, NATR, NBIX, NDAQ, NECB, NFLX, NI, NKE, NOA, NOW, NR, NRG, NS, NSIT, NTB, NTNX, NTRA, NU, NVO, NVT, NWSA, NXE, OBDC, OC, OIH, OKE, OKTA, OSG, OTEX, PAA, PAGP, PAGS, PAM, PANW, PARR, PATK, PAX, PBA, PBR, PBR/A, PCAR, PCG, PCOR, PEP, PETQ, PFBC, PFG, PG, PGR, PHM, PLMR, PNC, PNR, PPL, PRDO, PRU, PSN, PSX, PTC, PWSC, PXD, PYPL, QCRH, RDNT, RELX, REPYY, REVG, RGA, RHI, RMD, ROL, ROST, RSG, RWAY, RYAAY, S, SAIC, SAP, SHAK, SHEL, SHOP, SKM, SKX, SLB, SMCI, SN, SNA, SPB, SPOT, STNE, STNG, STT, SUM, SUN, SYF, T, TBBK, TDG, TEAM, TECH, TFC, TGS, THR, TJX, TNC, TNK, TNP, TOL, TRGP, TRI, TRIN, TRMD, TS, TSCO, TSM, TSN, TT, TTE, TYL, UBS, UEC, UGP, URA, URG, URNJ, USAP, USB, USO, VIPS, VIST, VIV, VLO, VRRM, VRT, VSEC, VST, VTOL, VTRS, VZ, W, WAL, WES, WFC, WIX, WM, WMB, WMG, WMT, WOR, WST, WWD, WYNN, XEL, XLC, XLE, XLF, XLP, XLU, XME, XP, XRX, YELP, YPF, Z, ZG, 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.
EXPORT – Canadian Scanner Results – 2024-01-27
AC.TO, ACO/X.TO, ADEN.TO, AEP.V, ALA.TO, AMX.V, AMZN.NE, ARE.TO, ATRL.TO, ATS.TO, AYA.TO, BAM.TO, BBU/UN.TO, BCE.TO, BDGI.TO, BDT.TO, BEI/UN.TO, BHC.TO, BITF.TO, BNS.TO, BPF/UN.TO, BRAG.TO, BRK.NE, BRM.V, BTB/UN.TO, CAD.V, CAS.TO, CCA.TO, CCL/B.TO, CCO.TO, CEU.TO, CFW.TO, CGO.TO, CHP/UN.TO, CIG.TO, CIGI.TO, CIX.TO, CJR/B.TO, CLS.TO, CMG.TO, CNRI.V, COV.V, CRDL.TO, CRT/UN.TO, CS.TO, CSH/UN.TO, CTS.TO, CURA.TO, CVO.TO, CWB.TO, DE.V, DFN/PA.TO, DFY.TO, DGHI.V, DGS.TO, DII/B.TO, DIR/UN.TO, DIS.NE, DNG.TO, DXT.TO, ECO.TO, EFN.TO, EIT/UN.TO, ENB.TO, ENGH.TO, ENS.TO, EQ.V, EQB.TO, ERE/UN.TO, ESI.TO, ET.TO, ETG.TO, EXE.TO, FC.TO, FCR/UN.TO, FCU.TO, FFH.TO, FIL.TO, FN.TO, FSV.TO, FSY.TO, FSZ.TO, FTT.TO, GEI.TO, GFL.TO, GIL.TO, GLO.TO, GLXY.TO, GMIN.TO, GOOG.NE, GOT.V, GWO.TO, H.TO, HDI.TO, HITI.V, HIVE.V, HMM/A.TO, HOM/U.TO, HPS/A.TO, IBAT.CA, IFC.TO, IIP/UN.TO, ILLM.TO, IMO.TO, IPCO.TO, ISO.V, JWEL.TO, KMP/UN.TO, KSI.TO, LBS.TO, LCS.TO, LIF.TO, LNR.TO, LSPD.TO, LUG.TO, LUN.TO, MATR.TO, MCB.TO, MDI.TO, MEG.TO, MOO.V, MRT/UN.TO, MRU.TO, MTL.TO, MVRS.NE, NEO.TO, NFG.V, NFLX.NE, NOA.TO, NVEI.TO, NXE.TO, ONEX.TO, OSI.V, OTEX.TO, OVV.TO, PD.TO, PET.TO, PHX.TO, PMZ/UN.TO, POW.TO, PPL.TO, PRYM.TO, PSI.TO, PYPL.NE, QBR/B.TO, QBTC.TO, RAY/A.TO, RBN/UN.TO, RBY.TO, RCI/B.TO, REAL.TO, RSI.TO, RUS.TO, RY.TO, SBC.TO, SES.TO, SGR/UN.TO, SHLE.TO, SHOP.TO, SIA.TO, SLF.TO, SRU/UN.TO, STN.TO, SU.TO, SXP.TO, TCL/A.TO, TCW.TO, TF.TO, THNC.TO, TIH.TO, TNZ.TO, TOT.TO, TOY.TO, TROY.CA, TRP.TO, TRUL.CA, TRZ.TO, TSU.TO, TXG.TO, URE.TO, VERS.NE, VHI.TO, VZ.NE, VZ.NE, WCN.TO, WJX.TO, WMT.NE, WPK.TO, WPRT.TO, WSP.TO, WTE.TO, ZEN.V
