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
S&P 500 Nears Record High Amid Convincing November Rally
In the culmination of a robust November rally, U.S. stocks sustained their upward momentum, securing a third consecutive week of gains. The major indexes closed the week with impressive performances, and benchmark yields remained stable, fueling a growing consensus among analysts that the S&P 500 index may achieve a record high by year-end. Friday’s trading session saw a 0.1% uptick in the S&P 500, culminating in a weekly gain of 2.2%, marking its third consecutive weekly advance and closing higher in 13 of the last 15 sessions. Meanwhile, the Dow Jones Industrial Average experienced marginal change, while the Nasdaq Composite recorded a modest 0.1% increase. These developments underscore the resilience and positive momentum in the current market landscape.
Indexes
The S&P 500, currently at 4514, has decisively surpassed crucial levels and exhibits resilience, demonstrating no indications of retracement. Having overcome every significant hurdle since its recent low, only one barrier remains at 4520. While historical resistance has impeded progress around this level, the absence of a downturn underscores market participants’ optimism, fueling continued stock purchases.
S&P 500 – Daily Chart
Notably, the technology sector continues to spearhead the market’s ascent in 2023, poised for another robust week. Although the Nasdaq faces resistance like the other major indexes, the prospect of breaching it looms large in the upcoming week. Distinguishing this rally is the emergence of a momentum trend, a formidable force characterized by specific criteria. The Nasdaq’s sustained position above the 21-day exponential moving average and a positive shift in the 50-day moving average are indicative of this developing momentum. If Monday yields another positive session for the Nasdaq, the momentum trend is poised to commence, signaling a potential opportunity for more aggressive trading strategies as per system rules as using the moving average as a trailing stop.
Nasdaq – Daily Chart
While the Dow Jones Industrial Average showed modest daily gains, it notched an impressive 1.9% increase for the week. As we approach the coming week, a vigilant eye will be cast on the potential for a breakout in the major indexes, monitoring closely as the resurgence of risk appetite for stocks comes into focus.
Dow Jones Industrial Average – Daily Chart
In contrast, small-cap stocks, as tracked by the Russell 2000, demonstrated noteworthy volatility, adding over 5% for the week. The index encountered resistance at the 200-day moving average mid-week (or 40-week moving average), reflecting its sensitivity to economic conditions.
Russell 2000 (ETF) – Weekly Chart
The SSIH maintains its bullish position, signaling a positive market sentiment. This reading suggests ongoing optimism or favorable conditions, as suggested by the chart.
SSIH
The U.S. dollar experienced its second most substantial weekly decline against other major currencies this year on Friday, sliding to levels not seen since September 1. Simultaneously, the yield on benchmark 10-year Treasury notes dropped to its lowest point in two months. The dollar index fell by 0.49% on the day, reaching a low of 103.68. This intensified the greenback’s decline over the past five days to 1.83%, marking its most significant weekly drop since mid-July as price action sliced below the lower trendline of its flagging pattern.
US Dollar – Weekly Chart
The yen, which had been weakened by dollar strength throughout the year, breached the 150 mark against the dollar for the first time in nearly two weeks, experiencing a gain to 149.54. The U.S. currency has declined approximately 1.4% against the Japanese yen since Monday, reflecting growing concerns about contracting global growth. In parallel, the euro demonstrated resilience, marking a 0.52% rise to $1.0906, supported by Eurostat data confirming a significant year-on-year slowdown in inflation in the eurozone for October. Despite weaker-than-expected retail sales figures in the UK, the British pound edged higher to $1.2458, registering a 0.42% increase for the day. The Canadian dollar showed signs of a revival against the USD, avoiding further losses and preventing a retest of the 1.39 area, revealing underlying resilience. Although the Canadian dollar has gained against a softer U.S. dollar this week, its 0.5% rise is the smallest among the major currencies.
Currencies
On Friday, bond yields experienced minimal fluctuations, with the 10-year Treasury yield closing at 4.441%, a slight decrease from the previous day’s 4.444%. This marginal adjustment comes as part of a broader trend, with the benchmark yield having declined by more than four-tenths of a percentage point over the course of November, following its recent peak at 5% towards the end of last month.
10-Year US Treasury Yield
Both bonds and stocks, having experienced significant oversold pressures at their lows, responded positively to indications of easing inflation. The prolonged impact of higher interest rates on riskier assets over the past two years has created a chill, but investors have recently gravitated toward some of these assets, taking advantage of their oversold levels. Notably, foreign investors no longer exhibit an insatiable appetite for U.S. government debt. The U.S. Treasury market is undergoing substantial shifts in supply and demand dynamics, with the Federal Reserve reducing its portfolio by approximately $60 billion monthly. This transition is accompanied by a decline in reliability from overseas buyers, especially China and Japan, as highlighted in recent weekend reports. This shift has contributed to the surge in rates, given the inverse relationship between bond prices and interest rates; when demand diminishes, prices decrease, increasing rates and vice versa.
The 30-year Treasury rate marked its most significant four-week drop of the year. This trend unfolded against the backdrop of recent data signaling a decelerating economy and as investors prepared for a shortened Thanksgiving holiday week. The yield on the 2-year Treasury saw a modest increase of 6.7 basis points on Friday, concluding the week 15.3 basis points lower. Meanwhile, the 30-year Treasury yield experienced a decrease of 2.5 basis points on Friday, contributing to a notable 13.6 basis points decline over the week. Notably, the 30-year Treasury yield recorded its fourth consecutive weekly drop, marking the most substantial four-week decline since December 16, 2022.
Bond Yields
While there isn’t much noteworthy activity to report regarding the CRB Index, an intriguing observation emerges from a compelling chart. It illustrates stocks breaking out above a downtrend line versus the Index, signaling potential outperformance in stocks compared to commodities. Historically, such shifts have indicated a rotation of funds as money managers aim to outperform. In this context, the movement of capital from underperforming areas of the market to those demonstrating strength underscores a strategic approach to maximize returns, aligning with money managers’ goals of achieving superior performance.
S&P 500 vs. CRB Index
Crude oil witnessed its fourth consecutive week of decline, falling to $72.39 a barrel. The 14.5% drop over the span raises questions about demand and supply dynamics. While some argue that technical factors may be at play, recent economic data presents a mixed outlook for oil bulls. Reports of surplus crude oil in Cushing, Oklahoma, coupled with lower refining margins in China, temper the bullish perspective. However, seasonal maintenance and upcoming refinery operations could contribute to a rebound in prices as price action is now testing a major support line going back years.
Crude Oil – Weekly Chart
The TSX Composite Index reached an eight-week high on Friday, propelled by a rebound in oil prices that lifted energy shares. Additionally, optimism grew as domestic producer price data suggested a potential conclusion to the Bank of Canada’s interest rate hiking campaign. Over the week, the index saw a notable 2.7% increase, spurred by encouraging economic indicators. Notably, Canadian producer prices recorded a 1% decline in October compared to September, contributing to the mounting evidence pointing towards a cooling trend in inflation.
TSX – Weekly Chart
Copper experienced a positive week, concluding with a notable 4.22% increase as price action steadily progressed toward the apex of a wedge formation.
Copper – Weekly Chart
The price of gold exhibited signs of momentum this week, concluding with a notable 2.43% increase. The price action is notably consolidating below the upper trendline of its significant basing pattern. Notably, certain gold miner setups have shown signs of promise, as highlighted earlier in the week in the daily setups. Stay tuned for further developments.
Gold – Weekly Chart
The price of silver is steadily progressing towards the apex of a significant consolidation pattern. Given the historical correlation between silver and gold, observing any signs of upside momentum is crucial, as it may signal an impending breakout.
Silver – Weekly Chart
Our uranium theme maintains its positive performance, with the price action of the ETF staying above its moving average and adhering to system rules. Concurrently, we continue to share uranium-related charts in the daily setups. As the adage goes, “the trend will be a friend until the one time it’s not.”
Uranium Theme – Global X Uranium ETF
The price of Bitcoin persists in consolidating near its 18-month highs.
Bitcoin – Daily Chart
Sector Watchlist Highlights: Weekend Chart Setups
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.
Upon reviewing last week’s performance, all 11 sectors saw positive gains, spearheaded by the real estate sector. Technology stocks reinforced their dominance in our setups section, complemented by a surge in momentum within the uranium theme and the emergence of potential setups in the crypto arena. Among today’s featured setups are charts that were initially posted when they began breaking above the horizontal resistance or trigger line, alongside new additions. Notably, these charts persist in showcasing positive momentum and sustained outperformance.
What Worked Last Week
Semiconductors
Link – Semiconductors Watchlist
AVGO – Broadcom Inc.
Broadcom is flagging below new all-time highs, suggesting a potential consolidation before its next move in the market.
LINK TO CHART – https://schrts.co/ZUgVsBWX
SMH – VanEck Vectors Semiconductor ETF
The VanEck Vectors Semiconductor ETF is consolidating following its recent move below the 52-week high trigger line. Keep a close watch for potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/vCwZHFRT
TSM – Taiwan Semiconductor Mfg
Taiwan Semiconductor is currently flagging below the next trigger line. Keep a vigilant eye for potential continuation of upside strength.
LINK TO CHART – https://schrts.co/cyXBwpws
Software
BRZE – Braze Inc.
Braze is consolidating within a tight range on the right side of a cup base, positioned below its 52-week highs. Keep a close eye for potential breakout signals.
LINK TO CHART – https://schrts.co/YyiaMtDg
MDB – MongoDB, Inc.
MongoDB is currently attempting to break out from a significant continuation wedge.
LINK TO CHART – https://schrts.co/iQswESRM
NET – Cloudflare Inc.
Cloudflare is pushing up against the trigger line of a significant bottoming base. Keep a close watch for potential breakout signals.
LINK TO CHART – https://schrts.co/FZcvabuZ
ORCL – Oracle Corp.
Oracle appears to be set up below a consolidation pattern’s upper trendline and horizontal resistance. Monitor closely for potential breakout signals.
LINK TO CHART – https://schrts.co/UXgYRBct
PLTR – Palantir Technologies, Inc.
Palantir is threatening a 52-week high breakout, indicating a potential continuation in positive upside momentum.
LINK TO CHART – https://schrts.co/tCwYwGxJ
ZS – Zscaler, Inc.
Zscaler is consolidating below its 52-week highs. Keep a watchful eye for the potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/tfjwgymw
Technology
CTSH – Cognizant Technology Solutions Corp.
Cognizant Technology is breaking out from a continuation wedge. Monitor for the potential of continued upside strength in its market trajectory.
LINK TO CHART – https://schrts.co/taxqvJUa
MBLY – Mobileye Global Inc.
Mobileye appears to be set up for a potential breakout from a falling wedge.
LINK TO CHART – https://schrts.co/NDpmIYRn
SQ – Block, Inc.
Block is gaining momentum off its recent lows as it approaches a horizontal resistance line. Consider adding this chart to your watchlist and monitor closely for potential breakout signals.
LINK TO CHART – https://schrts.co/TwtUnnpM
Crypto (Bitcoin) Related
Link – Crypto (Bitcoin) Related Watchlist
BITW – Bitwise 10 Crypto Index Fund
Bitwise 10 Crypto Index Fund ETF is consolidating below its 52-week high. Keep a watchful eye for the potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/ehfkUeaw
COIN – Coinbase Global Inc.
Coinbase is currently set up below its next trigger line. Keep a close eye on potential breakout signals.
LINK TO CHART – https://schrts.co/INfPZpGg
MARA – Marathon Digital Holdings Inc
Marathon Digital looks tightly coiled as price action sets up for a potential round-bottom breakout, suggesting a possible positive momentum in the near future.
LINK TO CHART – https://schrts.co/qmBFHWpn
Canadian Energy
Link – Canadian Energy Watchlist
CNQ.TO – Canadian Natural Resources Ltd.
Canadian Natural Resources is consolidating below its recent highs, indicating a period of price stability. Keep an eye on potential developments in the near term.
LINK TO CHART – https://schrts.co/ifcEcCVe
PPL.TO – Pembina Pipeline Corp.
Pembina Pipeline is set up in the form of a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/AzAyhtTP
TRP.TO – TC Energy Corporation
TC Energy appears to be set up for a potential breakout from a bottoming pattern, signaling a potential positive shift in its market dynamics.
LINK TO CHART – https://schrts.co/fjTuzziy
Energy
AROC – Archrock, Inc
Archrock is currently attempting a 52-week high breakout.
LINK TO CHART – https://schrts.co/hxrExwei
LPG – Dorian LPG Ltd.
Dorian LPG has been robust and consistently featured in our daily setups throughout its uptrend. Keep a close eye on another potential breakout to a new high.
LINK TO CHART – https://schrts.co/NSDcCejg
PBR – Petroleo Brasileiro (Petrobras)
Petrobras appears to be setting up below its 52-week highs. Monitor for potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/sIxUsSxi
Communication Services
Link – Communication Services Watchlist
META – Meta Platforms, Inc.
Meta continues to hover below new highs. Keep a close eye for the potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/AYRcWEyN
NTES – NetEase.com, Inc.
NetEase appears to be performing well following its recent earnings report, reflecting positive market sentiment.
LINK TO CHART – https://schrts.co/ZxkhrCZY
NYT – New York Times Co.
New York Times is setting up on the right side of a significant basing pattern, positioned below its 52-week high.
LINK TO CHART – https://schrts.co/GkrJQumD
Consumer Discretionary
Link – Consumer Discretionary Watchlist
AMZN – Amazon.com, Inc.
Amazon is currently digesting its recent surge by consolidating below 52-week highs. Keep a watchful eye for the potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/jxCscGUK
BECN – Beacon Roofing Supply Inc.
Beacon Roofing Supply setup continues to perform well following its breakout.
LINK TO CHART – https://schrts.co/aZFzkAXf
DKNG – DraftKings Inc
DraftKings is trending towards a new 52-week high, showcasing positive momentum in its recent market performance.
LINK TO CHART – https://schrts.co/Suagphap
Copper
BHP – BHP Group Limited
BHP appears to be setting up for a potential breakout from a significant continuation pattern.
LINK TO CHART – https://schrts.co/KUBAIJvv
RIO – Rio Tinto PLC
Similar to BHP, RIO appears to be breaking out from the same type of technical pattern.
LINK TO CHART – https://schrts.co/gtfcgBME
Financial
BLX – Banco Latinoamericano de Comercio Exterior, SA
Banco Latinoamericano de Comercio Exterior is currently attempting a 52-week high breakout.
LINK TO CHART – https://schrts.co/eBfgeUrR
BX – Blackstone Group Inc.
Blackstone is setting up on the right side of a significant basing pattern. Monitor closely for a continuation of upside strength that could potentially lead to a breakout.
LINK TO CHART – https://schrts.co/IHSjpGbV
JPM – J.P. Morgan Chase & Co.
The breakout identified in J.P. Morgan last week continues to exhibit robust upside strength.
LINK TO CHART – https://schrts.co/qxqCuewY
Healthcare
NVO – Novo Nordisk A S
Novo Nordisk is consolidating below its new all-time high. Keep a watchful eye for the potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/RAJZEpYK
Industrial
AER – AerCap Holdings NV
AerCap is currently attempting to break out from a significant basing pattern.
LINK TO CHART – https://schrts.co/baussFIT
APG – APi Group Corp.
APi Group is attempting to trend towards a new 52-week high.
LINK TO CHART – https://schrts.co/aZvKMQZh
CAT – Caterpillar, Inc.
Caterpillar appears to be set up in the form of a large bull flag continuation pattern. Keep a close watch for potential breakout signals.
LINK TO CHART – https://schrts.co/UqIQmcjE
PCAR – PACCAR, Inc.
PACCAR is breaking out to new all-time highs from a continuation pattern.
LINK TO CHART – https://schrts.co/iTcdqHQA
Materials
SRUUF – Sprott Physical Uranium Trust
The Sprott Physical Uranium Trust continues making new highs from the continuation pattern we’ve shared in the daily setups. Keep a close eye on further developments in its market trajectory.
LINK TO CHART – https://schrts.co/zjqhzeKH
URA – Global X Uranium ETF
Global X Uranium ETF is breaking out from the continuation pattern, a trend we’ve been highlighting in our daily setups.
LINK TO CHART – https://schrts.co/YgsrWxis
WPM – Wheaton Precious Metals Corp.
Wheaton Precious Metals continues to set up for a potential consolidation/continuation pattern breakout.
LINK TO CHART – https://schrts.co/bvvRISgF
Staples
BG – Bunge Global SA
Bunge appears to be set up for a potential continuation pattern breakout.
LINK TO CHART – https://schrts.co/hdaHakak
COKE – Coca-Cola Consolidated, Inc.
Coca-Cola Consolidated is pushing above the upper trendline of a continuation wedge, issuing a potential breakout signal.
LINK TO CHART – https://schrts.co/iQyKvTJa
MDLZ – Mondelez International, Inc.
Mondelez is set up below a significant horizontal resistance line. Keep a close eye for potential breakout signals.
LINK TO CHART – https://schrts.co/KEzykUEV
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. 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.
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.
