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
Cooling Inflation Powers S&P 500, Nasdaq to Weekly Gains
Stocks held their ground on Friday, concluding a week of robust gains on a cautious note. The Nasdaq Composite surged last week, while the S&P 500 also reached record highs, propelled by gains in major tech stocks. However, despite subdued inflation, the Dow Jones Industrial Average and Russell 2000 dipped below their 50-day moving averages.
The Nasdaq rose 3.2% over the week, and the S&P 500 increased by 1.6%. Conversely, the Dow Jones Industrial Average declined by 0.5%. The relative strength line for the Russell 2000 dropped to its lowest point in 23 years, highlighting small caps’ prolonged underperformance compared to the S&P 500.
While the market appears extended, the critical question is: how can investors capitalize on this insight? Simply labeling the market as overextended is insufficient and can foster misleading biases. Highlighting obvious points in market analysis, often called “Captain Obvious” analysis, offers little value. Investors frequently focus on indicators and miss the broader picture. Market reactions do not always align with textbook expectations. When everyone fixates on the same indicator, it often becomes ineffective.
It’s intriguing to observe pundits racing to predict a market top, aiming for the chance to claim, “I told you so.” Despite the market’s all-time highs, sentiment remains fearful, and experts are attempting to call a top just as global interest rates decline. We might get more clues as a new retail sales report will be a key data point during the shortened Juneteenth holiday week.
Reviewing what worked last week and the red-light/green-light breadth system, I found that technology and communication services were the only S&P sectors that accelerated higher, with discretionary achieving a slight gain. Decliners outpaced advancers nearly 3-to-1 on the New York Stock Exchange and the Nasdaq, and volume was mixed. The crucial question is whether the breadth indicates a weakening rally or simply pulls back before it starts to curl higher. The Nasdaq Advance/Decline line is at a multiyear low.
What Worked Last Week
The Red-Light/Green-Light Breadth System
This market remains complex. While the Nasdaq looks extended, other market segments are facing challenges. Investors should monitor the 21-day exponential moving average on the Nasdaq and the S&P 500 to gauge short-term momentum and see if prices remain above this line.
S&P 500 – Daily Chart
Nasdaq – Daily Chart
Even though the Dow Jones and the Russell failed to hold above their 50-day moving averages, these averages are moving sideways, indicating no clear direction. As a result, one should expect the price to continue consolidating sideways.
Price action remains above an upward sloping 200-day moving average, suggesting more sideways movement until a clear direction is revealed. The trading range is clear: a breakout above recent highs would be bullish, while a failure to hold above the 200-day moving average would be bearish. Monitor these key levels to determine the next move.
Dow Jones Industrial Average – Daily Chart
Russell 2000 (ETF) – Daily Chart
The 10-year Treasury yield continued its downward trajectory, ending the week down nearly 5%. The price action is forming what appears to be a head and shoulders topping pattern. Monitor closely for further developments.
10-Year US Treasury Yield
The US dollar continues to position itself in a bullish formation, with price action starting to push above a bullish flag continuation pattern.
US Dollar – Weekly Chart
Crude Oil – Weekly Chart
The TSX extended its weekly losing streak as investors shifted away from heavily weighted financial and energy shares in favor of technology stocks. Currently, the price action sits in no man’s land. Next week should provide more clues about the market’s direction.
TSX – Weekly Chart
Copper closed the week slightly positive, holding above the recent breakout line. This level will be crucial to watch next week. A successful retest, with price action staying above the breakout line, would suggest a continuation of the trend. The current action is consolidating into a potential wedge or bullish flag pattern.
Copper – Weekly Chart
Despite trading below its 50-day moving average, gold’s price action is consolidating in a sideways trading range. This consolidation presents a binary outcome: a breakout above the upper trendline would be considered bullish and suggest a continuation of the uptrend. If the price fails to hold and drops below the lower trendline, it could potentially retest the 200-day moving average.
Gold – Daily Chart
Silver exhibits a price action similar to copper. The price has returned to retest the recent breakout line as a bullish flag or wedge pattern. The price action also bounced off its 10-week (or 50-day) moving average. Monitor this level closely to see if there could be a resumption of the uptrend.
Silver – Weekly Chart
Despite the ETF closing in the red, the uranium theme saw a slight uptick this week. Price action rebounded from the lower trendline of a consolidation pattern and the 200-day (or 40-week) moving average. Watch closely to see if the price action can hold this level and continue its uptrend.
Uranium Theme – Global X Uranium ETF
Bitcoin hammered perfectly off a major support level as the PPO momentum indicator tests the zero line. It’s crucial to see this level hold to maintain the uptrend.
Bitcoin – Daily Chart
Ethereum has retested the 50-day moving average in the form of a potential bullish flag continuation pattern. This also coincides with the PPO retesting the zero line. It’s important to see this level hold to maintain the uptrend. Additionally, the SEC confirmed this week that Ethereum ETFs will be approved throughout the summer. Monitor closely for any signs of a continuation of the uptrend.
Ethereum – Daily Chart
While many trading setups remain robust, their frequency has noticeably decreased. Recently, numerous buying opportunities have encountered swift pullbacks, although a few have bounced back. In these volatile conditions, it is crucial to maintain disciplined stop-losses and keep your watchlists updated. Additionally, reviewing prior daily setups reports from the week can help identify stocks exhibiting relative and absolute strength to add to your watchlist. Now, onto the daily setups.
US Daily Setups
CDNS – Cadence Design Systems, Inc.
Cadence Design Systems had a positive day on Friday. Monitor closely to see if the price action can begin to trend above its upward-sloping moving averages.
LINK TO CHART – https://schrts.co/mgtfqFBK
CLSK – CleanSpark, Inc.
CleanSpark continues to consolidate towards the apex of a potential continuation pattern. Monitor closely for any signs of a breakout that could signal a continuation of the uptrend.
LINK TO CHART – https://schrts.co/JUfEwDCD
MSFT – Microsoft Corp.
Microsoft had a positive day on Friday. Monitor to see if the price action can trend above its upward-sloping moving averages following this breakout.
LINK TO CHART – https://schrts.co/XJmgjQkv
NFLX – Netflix, Inc.
Netflix appears to be breaking out from a multi-month area of consolidation. Monitor closely for signs of sustained upward momentum to confirm this breakout.
LINK TO CHART – https://schrts.co/TmybmyFP
OLLI – Ollie’s Bargain Outlet Holdings Inc.
Ollie’s Bargain Outlet is attempting to move higher from a bullish flag continuation pattern following its breakout retest. Monitor for signs of sustained upward momentum to confirm this move.
LINK TO CHART – https://schrts.co/nBtSdQgB
PLTR – Palantir Technologies, Inc.
Palantir Technologies rebounded off its moving average on Friday. Monitor closely to see if the price action can trend above its moving averages.
LINK TO CHART – https://schrts.co/fwafqSFR
REGN – Regeneron Pharmaceuticals, Inc.
Regeneron Pharmaceuticals is attempting to break out from a multi-month area of consolidation. Monitor closely for signs of sustained upward momentum to confirm this breakout.
LINK TO CHART – https://schrts.co/URynCQtp
VBNK – VersaBank
VersaBank appears to be setting up on the right side of a consolidation area as the daily PPO momentum indicator breaks out above the zero line. Monitor the price action closely for any potential breakout signals from this base.
LINK TO CHART – https://schrts.co/wdzenZWF
Canadian Daily Setups
BOS.TO – AirBoss of America Corp.
AirBoss of America is consolidating in what appears to be an ascending triangle pattern, making a series of higher lows. Monitor closely for any potential breakout signals.
LINK TO CHART – https://schrts.co/MbNAZkUC
CJT.TO – Cargojet Inc.
Cargojet appears to be breaking out from a multi-month area of consolidation. Monitor closely for signs of sustained upward momentum to confirm this breakout.
LINK TO CHART – https://schrts.co/pxGSPygb
FDR.V – Founders Metals Inc.
Founders Metals appears to be breaking out with accelerating momentum. Monitor closely to see if this momentum can be sustained and if the price action can continue trending above its upward-sloping moving averages.
LINK TO CHART – https://schrts.co/xgHttSkJ
VBNK.TO – VersaBank
VersaBank appears to be setting up on the right side of a consolidation area as the daily PPO momentum indicator breaks out above the zero line. Monitor the price action closely for any potential breakout signals from this base.
LINK TO CHART – https://schrts.co/YbWNNzVq
WCN.TO – Waste Connections, Inc.
Waste Connections appears to be setting up on the right side of a consolidation area. Monitor for any signs of a continuation of the uptrend.
LINK TO CHART – https://schrts.co/AvcDigTc
WFG.TO – West Fraser Timber Co. Ltd.
West Fraser Timber continues to set up near a lower potential trigger line. Monitor closely for any potential breakout signals.
LINK TO CHART – https://schrts.co/IdXftmkS
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 – 2024-06-15
AAON, ABBV, ACIW, ADBE, ADUS, AFYA, AGX, AMT, AU, AVB, AVGO, AWK, AZN, AZO, BF/B, BITQ, BKNG, BMA, BTDR, BXP, CARR, CCAP, CCI, CDNS, CGBD, CHD, CMG, COR, COST, CPB, CPT, CRWD, CTAS, CVLT, CWAN, CYBR, DEFTF, DLR, DOC, DORM, DRI, DUK, EA, EDR, EQR, ES, ESS, ESTC, FICO, FLR, GFL, GILD, GLD, GOOG, GOOGL, GS, GWRE, HAS, HMY, HUM, IBM, ICE, IDR, IIPR, INFA, INTU, INVH, IRM, ISRG, IWF, KIM, KMB, KNTNF, KO, LH, LMAT, MAA, MAIN, META, METV, MKTX, MRK, MSFT, NCNO, NEM, NFLX, NHC, NOW, NU, NVDA, NVMI, NVO, O, OLLI, OPRA, ORLY, PG, PINS, PLTR, PSA, QFIN, QQQ, RBA, REG, REGN, ROL, ROP, ROST, RSG, SBSW, SEM, SIMO, SLV, SMH, SNPS, SNX, SPOT, SPSC, SPY, SRUUF, SYK, TJX, TMUS, TTD, UDR, UEC, USO, UTHR, VEL, VGT, VRSK, VRTX, VSEC, VTR, WCN, WELL, WM, WMT, XLC, XLK, XLP, XLRE
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 – 2024-06-15
ADBE.NE, AEP.V, AIDX.TO, AIF.TO, ALA.TO, ALDE.V, ALS.TO, ATZ.TO, BITF.TO, BLN.TO, BOS.TO, BYD.TO, CCL/B.TO, CG.TO, CJT.TO, CMG.TO, COST.NE, CPX.TO, CSU.TO, CTS.TO, DEFI.NE, EU.V, EXE.TO, FDR.V, FIL.TO, FTN.TO, GDV.TO, GFL.TO, GFR.TO, GMIN.TO, GOOG.NE, GSY.TO, GXP.CA, HTL.TO, HWO.TO, III.TO, ITR.V, JWEL.TO, KNT.TO, KRR.TO, LIFT.CA, LIFT.V, MAU.V, META.NE, MKO.V, MKP.TO, MSFT.NE, MVRS.NE, NEO.TO, NFLX.NE, NGD.TO, NGT.TO, NVA.TO, NVDA.NE, NVEI.TO, OGC.TO, PHYS.TO, PMZ/UN.TO, PNE.TO, PNG.V, PNP.TO, PRQ.TO, PRV/UN.TO, PSI.TO, PSLV.TO, RAY/A.TO, RBA.TO, REAL.TO, RECO.V, RSI.TO, SDE.TO, SES.TO, SHOP.TO, SKE.TO, SSL.TO, TCW.TO, TF.TO, THNC.TO, TOI.V, TPZ.TO, TXG.TO, U/UN.TO, VBNK.TO, VHI.TO, VOXR.TO, VZLA.V, WCN.TO, WFG.TO, WILD.TO, WMT.NE, X.TO