SYS Research – Weekend Report – July 20, 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.

This is just a friendly reminder that it’s essential to monitor the Daily Setups and Workspace scan results, which can provide insights into potential future additions and help you stay ahead of the game.

If you’re having trouble understanding the Daily Setups or need help crafting a trading strategy, don’t hesitate to ask for assistance. You can email us 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 Commentary

The stock market faced another challenging day on Friday, concluding a tumultuous week marked by tech investors locking in profits. The Nasdaq, which has delivered double-digit gains this year, encountered heightened pressure following President Joe Biden’s comments about potential export restrictions to China for the U.S. semiconductor industry. This added to the selling momentum already in place, influenced by the “great rotation” due to the increasing likelihood of Donald Trump securing a victory in the upcoming presidential election.

Additionally, 10-year Treasury yields edged slightly higher, driven by potential policies from a Trump administration that could include personal tax rate cuts and tariffs, potentially stoking inflationary pressures. Higher long-dated bond yields pose a particular problem for tech stocks, as these companies are often valued based on the expectation of significant future profits, which become less valuable as yields rise.

As a result, the Nasdaq Composite fell 3.7% for the week, snapping a six-week winning streak, while the S&P 500 declined by 2%. The economically sensitive Dow also succumbed to the selling pressure, along with the small-cap Russell 2000 index. Despite the rise in Treasury yields, they remain near multi-month lows, reflecting this week’s data showing a weakening economy that could prompt the Federal Reserve to consider cutting interest rates in September. With the election approaching, Democrats might prefer to lower rates right before the vote. The chart still appears to be forming a head with shoulders topping structure.

10-Year US Treasury Yield

When looking at what worked last week, 5 of the 11 S&P sector groups closed higher, including industrials, energy, staples, financials, and real estate.

What Worked Last Week

All major indexes are approaching critical support levels worth monitoring for potential bounces. Historical data suggests that a breadth thrust of the magnitude just experienced is typically very bullish over the subsequent 6 to 12 months as buying expands from the “Magnificent 7” stocks to a broader range of companies benefiting from a more robust economy.

The Red-Light/Green-Light Breadth System

As we enter a week full of earnings reports, volatility could increase. The outcomes of these earnings will provide insights into whether the potential support levels on the indexes hold. Leading the onslaught of earnings reports in the coming week are Google-parent Alphabet (GOOGL), Tesla (TSLA), and GE Aerospace (GE).

The small-cap Russell 2000 advanced 1.7% this week, although it remained well off Wednesday’s multiyear high. It is crucial to observe the volume accompanying this breakout and consider it alongside the recent breadth thrust in small caps. It will be prudent to monitor for a retest of the breakout line or observe the price action’s interaction with the 21-day moving average as it trends upward. Ideally, a successful retest of the breakout line or the upward-sloping moving average would indicate the potential for establishing a trend from this consolidation area. This approach helps anticipate outcomes and define downside risk, presenting a favorable risk-reward entry point where a tight stop-loss order can be set, allowing momentum to prevail if these levels hold.

Russell 2000 (ETF) – Daily Chart

The Nasdaq declined by 0.81% on Friday, falling below its 21-day exponential moving average. It now sits just 1.7% above its 50-day moving average, which coincides with a potential support area indicated by the gap. This pullback follows a peak of 8.9% above the 50-day moving average. The 50-day moving average and the green bar on the chart, marking the gap, are key areas to watch for a potential bounce.

Nasdaq – Daily Chart

The S&P 500 index declined by 0.71% on Friday, falling below its 21-day exponential moving average after reaching a record high on Tuesday. The price action now rests on a potential support area. If this level fails, the next logical level to watch for a bounce would be the 50-day moving average, which aligns with the same gap observed in the Nasdaq.

S&P 500 – Daily Chart

The Dow Jones Industrial Average rose 0.7% for the week despite pulling back after reaching a record intraday high on Thursday. Watch if price action holds the recent breakout line as the 21-day exponential moving average approaches that level. Ideally, a successful retest of the breakout in the form of a bullish flag, followed by price action trending above the 21-day line, would be favorable while allowing one to define downside risk.

Dow Jones Industrial Average – Daily Chart

On Friday, the dollar rebounded from the lower support level on the chart, which also corresponds to the breakout line from last August’s wedge pattern. This move ended a two-week decline, marking its first weekly gain in three weeks. The rebound was supported by recent U.S. economic data and potentially the technology outage. Next week will be telling if this level can hold, as the U.S. dollar continues to correlate with the 10-year Treasury yield. This move in the dollar was also inversely to that of commodities.

US Dollar – Weekly Chart

In Thursday’s report, caution was warranted in the commodities sector. Copper experienced a violent sell-off after failing at the underside of its 50-day moving average, and uranium faced another rough day. In our Slack workspace, we noted concerning price action in silver as it began to fall below the lower trendline of its triangle, diverging from gold, which was at all-time highs. These observations signaled potential trouble as copper futures plunged 8.25%, marking their worst week in two years. The rest of the commodity index followed suit on Friday as the U.S. dollar strengthened and oil and gold plummeted. When ‘Doctor Copper’ falls, it’s not an encouraging sign for the global economy.

We provided an analysis in last weekend’s report that went as follows:

Price action in copper failed at an area of horizontal resistance last week, then continued to consolidate downward in the form of a potential flagging pattern. Now, monitor if price action can hold the 21-day exponential moving average, as it was unable to stay above the 50-day moving average. This setup presents a binary event. Watch to see if price can reclaim the $4.70 level. If it can’t, this could indicate a lower high and set up for a potential head-and-shoulders top. Remember, we don’t make predictions; we react to price action.

Copper Chart From The Weekend Report

Copper – Daily Chart

Crude oil’s price action plummeted on Friday, ending the week down 4.34%. Price action now sits right on the 40-week or 200-day moving average. It’s crucial to see this level hold. The weekly PPO momentum indicator attempts to curl lower while still positioned above the zero line. Bulls want to see the PPO hold above the zero line. If the PPO starts to break below the zero line, it would be considered a victory for the Bears.  The price action in oil was partly a reaction to the potential for a ceasefire in Gaza.

Crude Oil – Weekly Chart

Gold has pulled back into its trading range to retest the recent breakout level and the 21-day exponential moving average. Ideally, the 21-day exponential moving average should hold. Below the 21-day line are the 50-day moving average and the lower trendline of the trading range, which are the next logical levels to monitor. Next week will be telling.

Gold – Daily Chart

The price action in silver fell below the lower trendline of the triangle discussed in the Slack workspace on Thursday. However, it stopped exactly at the recent breakout line, which now acts as a level of support. In technical analysis, what was once resistance often becomes support, and that is precisely what happened here. This level now becomes crucial and should ideally hold. If the price action fails to maintain this support, it could potentially drop back to the 200-day moving average.

Silver – Daily Chart

As noted in Wednesday’s report, the selling of the uranium theme led to an awful week. Price action fell below its 40-week average or 200-day moving average and below the lower line of the consolidation area we have been monitoring. From a bullish perspective, it is critical to see price action hold at the 200-day moving average. One doesn’t want to see the moving averages start crossing below the 200-day moving average, which could lead to a potentially bearish cross signal.

Uranium Theme – Global X Uranium ETF

Canada’s resource-heavy stock index, the TSX, ended lower for the third straight day on Friday as commodity prices fell. The week concluded with a potential gravestone doji-type candle following its recent breakout, correlating with commodity price action. Despite this potential topping candle, the TSX was up 0.1% for the week, marking its fourth straight weekly advance after posting a record closing high of 22,995.39 on Tuesday. Next week, closely monitor the TSX’s direction, which will likely influence the performance of the commodities sector. Although a gravestone-type doji was printed, we do not make predictions. We must watch and react, as these types of candles often cause a head fake for those relying on Captain Obvious’s analysis.

TSX – Weekly Chart

Bitcoin jumped nearly 6% to move past $67,500 on Friday. Part of the reason is that Bitcoin’s decentralized network was one of the few unaffected by the recent tech outage. For those who dismiss Bitcoin as insignificant, this event might encourage them to study the Bitcoin network and understand its unique characteristics rather than forming an opposition based on uneducated opinions. Monitor to see if the price action of Bitcoin can continue moving higher above its upward-sloping moving averages, potentially leading to a breakout. Our daily setups section is heavily weighted toward related names, as they topped the scanner results for the second time this week.

Bitcoin – Daily Chart

Ethereum is consolidating in its sideways trading range. Like Bitcoin, monitor to see if price action can continue upward, potentially leading to a breakout. Next week, the approval of Ethereum ETFs is expected to start trading, which could increase interest. Additionally, if Bitcoin’s price action continues to move higher and break out, there is a probability it will drag Ethereum with it.

Ethereum – Daily Chart

Like Bitcoin and Ethereum, Solana continues to consolidate sideways within its trading range. Monitor for any continued signs of upward momentum, which may lead to a breakout.

Solana – Daily Chart

US Daily Setups

BRPHF – Galaxy Digital Holdings Ltd.

Galaxy Digital has returned to test the recent breakout line with increased volume. Monitor for any potential signs of upside momentum that may suggest a continuation of the uptrend. Increased volume during a retest often indicates strong support.

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

 

BX – Blackstone Group Inc.

Blackstone appears to be breaking out from a multi-month consolidation area. Breakouts from consolidation often signal the start of a new trend.

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

 

COIN – Coinbase Global Inc.

Coinbase is set up near the apex of a multi-month area of consolidation, which could also be considered a continuation pattern as price action forms a triangle. Monitor for any potential breakout signals.

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

 

CRTO – Criteo SA

Criteo is attempting to break out from an area of consolidation as price action sets up above its upward-sloping moving averages.

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

 

ET – Energy Transfer LP

Energy Transfer is consolidating at its 52-week high. Monitor for a continuation of the uptrend. Consolidation at a high often precedes further upward movement.

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

 

FTI – TechnipFMC Plc

TechnipFMC is attempting to break out from an area of consolidation.

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

 

IBIT – iShares Bitcoin Trust Beneficial Interest

The iShares Bitcoin Trust Beneficial Interest ETF is showing signs of momentum along with Bitcoin as price action consolidates sideways. Monitor for a continuation of upside strength, which may lead to a breakout.

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

 

MSTR – MicroStrategy Inc.

MicroStrategy is breaking out from the recently highlighted symmetrical triangle consolidation/continuation pattern. The volume profile follows a textbook pattern: volume surged as the right side of the triangle formed, decreased as the pattern developed, and increased again upon breakout. This volume behavior often confirms the validity and strength of the breakout.

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

 

NU – Nu Holdings Ltd.

Today, Nu Holdings showed signs of strength following yesterday’s rebound from its upward-sloping moving average. Monitor for a resumption of the breakout.

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

 

TOST – Toast Inc.

Toast appears to be setting up below its 52-week high. The volume profile since May has been interesting. Monitor for any potential breakout signals.

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

 

WFRD – Weatherford International Plc

Weatherford has a beautiful setup, although they report earnings on July 24th. It’s always a gamble to front-run an earnings report due to the risk of a gap lower. Keep this chart on your watchlist and see how it reacts post-earnings.

LINK CHART – https://schrts.co/WUXEaFwQ

 

Canadian Daily Setups

AIF.TO – Altus Group Ltd.

Altus Group appears to be initiating a 52-week high breakout. Monitor to see if price action can continue to trend above its upward-sloping moving averages.

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

 

ALA.TO – AltaGas Ltd.

AltaGas continues to appear on momentum scans, with price action trending from the lower left-hand side of the chart to the upper right, indicating a continuing uptrend.

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

 

ATH.TO – Athabasca Oil Sands Corp.

Athabasca Oil Sands appears to be set up in a potential rounded bottom consolidation pattern below its 52-week high. Monitor for any potential breakout signals.

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

 

DBM.TO – Doman Building Materials Group Ltd

Doman Building Materials appears to be set up in the form of a bottoming wedge. Monitor for signs of upside strength, which may lead to a breakout.

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

 

ENB.TO – Enbridge, Inc.

Enbridge continues to show signs of strength in a weak market tape. Monitor for any potential breakout signals, as relative strength in a weak market often indicates strong underlying momentum.

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

 

FDR.V – Founders Metals Inc.

Founders Metals is appearing on momentum scans as price action sets up below its 52-week high. Monitor for any potential breakout signals.

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

 

GLXY.TO – Galaxy Digital Holdings Ltd.

Galaxy Digital has come back to test the recent breakout line with increased volume. Monitor for any potential signs of upside momentum that may suggest a continuation of the uptrend.

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

 

LGO.TO – Largo Resources Ltd.

Largo Resources appears to be setting up on the right side of a potential bottoming pattern. Monitor for any signs of strength, which may lead to a breakout.

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

 

TRP.TO – TC Energy Corporation

The TC Energy setup continues to demonstrate strength following its base breakout.

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

To conclude our report, we thank you for your engagement and insights. Your feedback is valuable, 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 PDFs of Friday’s scan results provided below. 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 – 2024-07-19

ABBV, ACN, ALKT, ALSN, AM, AMAL, AMGN, AORT, APEI, APO, ARLP, ASTH, AVDX, AX, AXON, AZN, AZO, BAND, BBVA, BBY, BIIB, BITO, BITQ, BITW, BJRI, BKNG, BKR, BLK, BLOK, BMA, BPOP, BRC, BSX, BTDR, BV, BX, C, CAKE, CARG, CASH, CASY, CBOE, CBRE, CCI, CCL, CCS, CECO, CFB, CFG, CHRD, CHRW, CIB, CIFR, CL, CLH, CLSK, CLW, COIN, COLL, CORT, CR, CRH, CRS, CRTO, CUBI, CUK, CVLG, CWAN, CXT, DAVE, DFIN, DHI, DHT, DOCU, DSGX, DTM, DUK, ECL, EHC, ENLC, ENVA, EPD, EQBK, EQR, ERJ, ESS, ET, EVRG, EWBC, EXPD, EXPE, FBP, FCNCA, FDIG, FE, FICO, FINMY, FITB, FLUT, FNF, FROG, FSV, FTI, GBTC, GDDY, GENI, GIL, GMED, GMS, GPOR, GRBK, GTES, GWRE, H, HASI, HBAN, HCA, HEAR, HESM, HIVE, HLT, HOLX, HOOD, HOV, HRB, HUT, HWKN, IBCP, IBOC, ICFI, ICLR, IESC, IHI, IIPR, INCY, IOT, IRM, ISRG, ITGR, JBI, KB, KBE, KBH, KD, KEX, KEY, KKR, KMI, KNF, KNTK, KO, KRE, KRYS, LEN, LEU, LGND, LII, LINC, LMAT, LMB, LNTH, LOB, LOVE, LPX, MAMA, MARA, MBIN, MBWM, MGM, MGNI, MHO, MIRM, MLR, MMYT, MO, MPLX, MSTR, MUSA, NBIX, NCLH, NDAQ, NKE, NOW, NPO, NRDS, NTB, NU, ODFL, OFG, OKE, ORCL, ORLY, OTTR, OWL, PAGS, PANW, PAY, PBA, PCG, PEGA, PFE, PG, PLD, PNTG, PNW, PRCT, PUBM, QCRH, QSR, RBLX, RCL, RDNT, ROAD, ROL, SF, SHOO, SLB, SMFG, SMLR, SO, SPG, SPNS, SPXC, SQ, SRPT, STRA, STT, SYK, TBBB, TBBK, TDW, TEVA, TFII, TFPM, TFX, THC, TMDX, TOL, TOST, TPH, TRAK, TRGP, TRMD, TW, TWST, TXRH, UAL, UMBF, UNH, UPS, URBN, USB, UTHR, VEL, VERX, VIRT, VIST, VMC, VNOM, VRRM, VRTX, VSEC, VTR, VTRS, WAL, WBD, WELL, WFRD, WGMI, WIX, WMB, WULF, XEL, XLU, XLV, XPH, ZIMV

 

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.

ACB.TO, ACO/X.TO, AI.TO, AIF.TO, ALA.TO, APM.V, ARTG.V, ASE.CA, ASM.TO, ATH.TO, BBD/B.TO, BDT.TO, BEI/UN.TO, BIP/UN.TO, BITF.TO, BK.TO, BK/PA.TO, BTE.TO, CAD.V, CAR/UN.TO, CAS.TO, CCL/B.TO, CEU.TO, CGX.TO, CHP/UN.TO, CM.TO, CP.TO, CRDL.TO, CRT/UN.TO, CSH/UN.TO, CSU.TO, CTC/A.TO, DBM.TO, DFN.TO, DOL.TO, DSG.TO, EIF.TO, EMP/A.TO, ENB.TO, ENS.TO, ETHC.NE, ETHH.TO, EXE.TO, FCR/UN.TO, FDR.V, FFN/PA.TO, FIL.TO, FN.TO, FSV.TO, FSZ.TO, GEI.TO, GIL.TO, GLXY.TO, GOT.V, GRT/UN.TO, GSY.TO, GUD.TO, HIVE.V, HR/UN.TO, HUT.TO, IIP/UN.TO, INO/UN.TO, IVN.TO, KEY.TO, KITS.TO, KLD.V, KMP/UN.TO, KXS.TO, L.TO, LFE.TO, LGO.TO, LIF.TO, LRA.V, MAU.V, MRU.TO, NA.TO, NG.TO, NWC.TO, NWH/UN.TO, NXR/UN.TO, ONEX.TO, OSI.V, PBH.TO, PFE.NE, PLUR.V, PLZ/UN.TO, PNG.V, PPL.TO, PRL.TO, PRQ.TO, QBTC.TO, QSR.TO, REAL.TO, RS.TO, SAP.TO, SIA.TO, SJ.TO, SLI.V, SVI.TO, SVM.TO, TF.TO, TFII.TO, TIH.TO, TINY.V, TNZ.TO, TOI.V, TPZ.TO, TRP.TO, VZLA.V, WE.V, WFG.TO, WN.TO, X.TO, XAU.TO

 

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