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
Market Commentary
The S&P 500 experienced a significant surge on Friday, marking its most robust weekly performance since November 2022, propelled by the latest monthly jobs report. This report indicates the success of the Federal Reserve’s interest-rate-raising campaign. Meanwhile, the market’s volatility indicator, the VIX, suggests a period of relative calm. However, investors should remain cautious, as individual stock reactions to earnings have been anything but tranquil. Turbulence may resurface sooner rather than later, as the indexes now sit below a zone of horizontal resistance. It’s important to remember that even if the price stalls at this level on the indexes, a stable market will provide an opportunity for the most favorable setups to work. Keep a close watch on the setups section of this report and daily setups. As I always say, the best setups often signal when pundits are preoccupied with predicting index movements, and they tend to lead when the market decides to make a move. This approach also helps avoid panic chasing as the market moves further from investors and eliminates the need to speculate about the future movements of the indexes. It enables individuals to seize opportunities presented by the most favorable setups instead of making speculative predictions based on indicators and what is suggested in the textbook. Always have a plan.
VIX of the VIX
The S&P 500 surged by 0.9% on Friday, displaying a bullish move as it crossed above its 50-day moving average. However, it’s worth noting that the price action currently resides below a horizontal resistance line, coinciding with a prevailing sense of euphoria in the market. This week, the benchmark index posted an impressive near 6% gain, pushing its year-to-date increase to 14% in 2023.
S&P 500 – Daily Chart
The Dow Jones Industrial Average posted a substantial gain of 5.1% in its most impressive week in a year. However, similar to the S&P 500, its price remains situated below a horizontal resistance line, indicating potential challenges ahead. Watch for a potential breakout while managing downside risk.
Dow Jones Industrial Average – Daily Chart
The Nasdaq Composite exhibited remarkable strength among the major indexes, registering a robust 1.4% gain. Notably, the tech-heavy index successfully closed above its 50-day moving average, although, like the S&P 500 and the Dow, its price is still situated below a horizontal resistance line. Over the past week, the Nasdaq Composite delivered an impressive weekly gain of 6.6%, further solidifying its outstanding performance in 2023, with a year-to-date increase of nearly 30%.
Nasdaq – Daily Chart
Market breadth exhibited remarkable strength, signifying a significant departure from weeks of lackluster results. Advancers significantly outnumbered decliners, and new highs surpassed new lows for the first time in over a month, with a ratio of approximately 5-to-1 on the New York Stock Exchange and more than 3-to-1 on the Nasdaq. This surge in advancing stocks reflects a positive market sentiment.
Moreover, the green-light/red-light breadth system is currently signaling a green light, a crucial indicator for investors to consider. Even more notably, the ratio of advancing to declining volume is showing a bullish thrust, which historically confirms market strength.
However, it’s important to remember that the information we provide at SetYourStop is meant for your consideration. Ultimately, the decision on how to act on this information is yours to make. We encourage you to examine the chart and keep in mind that a well-thought-out plan is essential in the world of investing. Blindly making decisions is risky, even if the market appears to be signaling a favorable condition, as random actions seldom yield positive outcomes.
Breadth
The SSIH continues to show strong upward momentum, with the PPO now making an effort to cross above the zero line. This bullish action suggests a positive trend, and the price is getting closer to the horizontal line of the lower bound.
SSIH
The small-cap Russell 2000 surged by 7.6%, marking its strongest week in three years, following a previous decline to a three-year low.
Russell 2000 (ETF) – Weekly Chart
The yield on the U.S. 10-year Treasury note closed the week at 4.558%, down from 4.846% a week earlier. This marked the most significant weekly drop since March. The decrease in bond yields provided relief for stocks, as they have been a source of pressure on the stock market. Higher yields result in increased borrowing costs for both companies and households. Moreover, elevated rates can make stocks appear less attractive because they compete with essentially risk-free returns.
Currently, the stock market is closely following the lead of the bond market. The concern is that persistently high interest rates could potentially slow down the economy, jeopardizing earnings for 2024 and 2025. This alone could lead to a more volatile market. The recent movements in both bond and stock markets reflect growing hopes for a soft landing of the economy, which means no further interest rate hikes and, ultimately, interest rate cuts in the coming year. However, paradoxically, these market rallies may hinder the realization of that scenario.
10-Year US Treasury Yield
Treasury yields experienced a widespread decrease on Friday, resulting in consecutive weekly declines due to the disappointing October nonfarm payrolls report, which revealed the addition of 150,000 new jobs, falling short of expectations. Specifically, the yield on the 2-year Treasury note dropped by 14 plus basis points to 4.83% from 4.98%, marking its lowest closing level since August 10. Over the week, this rate decreased by 18.2 basis points. Furthermore, the 30-year Treasury bond yield decreased by 7 basis points to a three-week low at 4.77% from 4.82% late Thursday, posting a notable weekly decline of 27.3 basis points, the most significant since the week ending on March 6, 2020.
Bond Yields
The U.S. dollar declined to a six-week low on Friday, breaching the 50-day moving average (or 10-week moving average), in response to jobs data that reinforced expectations of the Federal Reserve maintaining interest rates at their current levels during its December meeting. The dollar index fell by 1.4% to 104.86, reaching as low as 104.78, its lowest level since September 20. This drop marked the largest one-day decline for the dollar index since July.
US Dollar – Weekly Chart
Against the Japanese yen, the dollar slipped to a two-week low at 149.18 and was last down 0.8% at 149.315 yen, concluding a tumultuous week during which the Japanese currency touched a one-year low against the dollar and a 15-year low against the euro. The euro was last up 1.1% at $1.0735, and due to gains earlier in the week, it was on track for a weekly increase of 1.6%, marking the largest gain in four months. Sterling also posted strong gains, rising 1.5% versus the dollar to $1.2381, with a high of $1.2389 earlier in the day. The British pound saw its most substantial daily performance since January. The Canadian dollar, after registering significant gains against the USD on Thursday, remained relatively stable in the session. Short-term price action indicates that the decline against the dollar has halted in the low 1.37s intraday.
Currencies
Canada’s primary stock index reached a six-week high on Friday, further reinforcing expectations of central banks concluding their interest rate tightening initiatives. The TSX composite index closed with a gain of 198.51 points, representing a 1% increase and reaching 19,824.85, its highest closing level since September 20. Throughout the week, the TSX posted an impressive 5.8% gain, marking its most substantial weekly advance since April 2020. The price action is now firmly positioned back within its trading range.
TSX – Weekly Chart
Oil prices saw a decline of over 2% during Friday’s settlement, resulting in a weekly drop of 5.88%, as concerns about supply, influenced by easing Middle East tensions, weighed on the market. U.S. West Texas Intermediate crude futures fell by $1.95 on Friday, representing a 2.4% decrease and bringing the price per barrel to $80.51.
Crude Oil – Weekly Chart
Copper prices had a positive week, with the price action rebounding from the lower trendline of a wedge pattern. Currently, the price is situated below a horizontal resistance line. From a technical standpoint, to establish a bullish scenario, it is crucial for the price to regain this level and, ideally, break out above the wedge pattern.
Copper – Weekly Chart
The price of gold is currently forming a technically intriguing pattern, with the price action positioned below the upper trendline of a significant multi-year consolidation/continuation pattern. As the saying goes, “The bigger the base, the higher the space.” A potential breakout from this pattern could lead to a new all-time high, clearing overhead resistance and signaling the start of a more substantial upward move.
Gold – Weekly Chart
Bitcoin is presently in a consolidation phase near its highs, a situation that can be viewed as bullish because assets generally do not provide extended periods for selling opportunities. The longer Bitcoin can sustain its current levels, the more bullish the setup becomes. Watch for a potential continuation of the uptrend and closely monitor daily setups, as numerous Bitcoin-related equities are signaling potential trading opportunities.
Bitcoin – Daily Chart
The uranium theme had another bullish week, and the price action is currently positioning itself below a trigger line. A breakout above this level on the ETF would be considered bullish and suggest a continuation of the uptrend.
Uranium Theme – Global X Uranium ETF
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. 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.
What Worked Last Week
Canadian Energy
Link – Canadian Energy Watchlist
ALA.TO – AltaGas Ltd.
AltaGas is setting up near its 52-week highs with an increase in volume. This development is worth monitoring.
LINK TO CHART – https://schrts.co/VQTWPccy
CEU.TO – CES Energy Solutions Corp.
CES Energy Solutions is set up in the form of a bull flag continuation pattern. Keep a close eye on this setup.
LINK TO CHART – https://schrts.co/zZcpVrBI
CFW.TO – Calfrac Well Services Ltd.
Calfrac Well Services is attempting to push higher from a continuation wedge.
LINK TO CHART – https://schrts.co/RWnPNsqX
Energy
AR – Antero Resources Corp.
Antero Resources continues to set up on the right side of a significant bottoming base. Keep watch for potential breakout.
LINK TO CHART – https://schrts.co/iPkwVxKa
USAC – USA Compression Partners, LP
USA Compression Partners is currently attempting to push to new 52-week highs.
LINK TO CHART – https://schrts.co/rNWaIdTb
WFRD – Weatherford International Plc
Weatherford International is attempting to break out to a new all-time high. This is a notable development to monitor.
LINK TO CHART – https://schrts.co/AkPQGEsR
Communication Services
Link – Communication Services Watchlist
GRVY – Gravity Co. Ltd.
Gravity is currently set up below the trigger line of a continuation wedge. Monitor this setup closely for potential developments. The earnings report is on the 16th.
LINK TO CHART – https://schrts.co/ZzMTniJJ
NFLX – Netflix, Inc.
Netflix is starting to move higher from a continuation wedge.
LINK TO CHART – https://schrts.co/hcqTbcZV
NTES – NetEase.com, Inc.
NetEase.com is starting to break out from its consolidation pattern. The earnings report is on the 15th.
LINK TO CHART – https://schrts.co/IYhFwqiP
Consumer Discretionary
Link – Consumer Discretionary Watchlist
BECN – Beacon Roofing Supply Inc.
Beacon Roofing Supply is currently consolidating in the form of a falling wedge continuation pattern. Keep an eye on this setup for a potential breakout.
LINK TO CHART – https://schrts.co/eZmxXBeP
FTDR – frontdoor, inc.
frontdoor continues to consolidate following its bullish earnings report. Monitor for the potential continuation of upside strength.
LINK TO CHART – https://schrts.co/BvJdFBvJ
WING – Wingstop Inc.
Wingstop is a setup that initially showed up on scan results and appeared positioned for a potential breakout before the market began to show signs of a bottom. Once the market started to turn, this setup accelerated higher.
LINK TO CHART – https://schrts.co/fwnFxWUR
Crypto (Bitcoin) Related
Link – Crypto (Bitcoin) Related Watchlist
COIN – Coinbase Global Inc.
Coinbase performed well following its earnings report on Friday. Monitor for the continuation of upside strength.
LINK TO CHART – https://schrts.co/msFmPwGV
MSTR – MicroStrategy Inc.
MicroStrategy continues to set up near its 52-week highs. Monitor for the potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/SdIEkYBH
WGMI – Valkyrie Bitcoin Miners ETF
The Valkyrie Bitcoin Miners ETF is sitting on its trigger line as the PPO threatens a possible zero-line breakout. If the price of Bitcoin can continue to trend higher, this could provide momentum for these Bitcoin miners. Keep a close watch on these developments.
LINK TO CHART – https://schrts.co/seNPZzye
Industrial
CNM – Core & Main Inc.
Core & Main is currently consolidating in the form of a continuation pattern located below its 52-week highs
LINK TO CHART – https://schrts.co/IAKvTiyx
DRS – Leonardo DRS, Inc.
Leonardo DRS is breaking out from a bull flag continuation pattern to reach 52-week highs.
LINK TO CHART – https://schrts.co/kcRYimnu
RBA – Ritchie Bros Auctioneers
Ritchie Bros Auctioneers is setting up below its 52-week highs. Monitor for the potential of a breakout.
LINK TO CHART – https://schrts.co/BijrmKiq
Materials
CCJ – Cameco Corp.
Cameco continues to show upside strength.
LINK TO CHART – https://schrts.co/gFzBTpPu
NEU – NewMarket Corp.
NewMarket is currently threatening a new all-time high breakout.
LINK TO CHART – https://schrts.co/FqKiDGIK
SCCO – Southern Copper Corp.
Southern Copper is consolidating in the form of a falling channel, with price action pushing up against the underside of a trigger line. Take note of the large volume by price bar on the left side of the chart. Monitor for the potential of a breakout.
LINK TO CHART – https://schrts.co/iMtuWuDy
Precious Metals
Link – Precious Metals Watchlist
AGI – Alamos Gold Inc.
Alamos Gold is attempting to break out from its consolidation pattern.
LINK TO CHART – https://schrts.co/uaFfjyDK
GDX – VanEck Vectors Gold Miners ETF
The VanEck Vectors Gold Miners ETF is currently pushing up against the underside of a trigger line. Monitor for the potential of a breakout.
LINK TO CHART – https://schrts.co/vHfafgyj
WPM – Wheaton Precious Metals Corp.
Wheaton Precious Metals is currently attempting to break out from its consolidation pattern.
LINK TO CHART – https://schrts.co/qckADTeq
Semiconductors
Link – Semiconductors Watchlist
AMD – Advanced Micro Devices, Inc.
AMD is breaking out from its consolidation pattern and above a large volume by price bar following a bullish earnings report.
LINK TO CHART – https://schrts.co/QTdNHMHI
AVGO – Broadcom Inc.
Broadcom is consolidating below all-time highs. Monitor for the potential of upside strength.
LINK TO CHART – https://schrts.co/hhUSyIis
SMH – VanEck Vectors Semiconductor ETF
The VanEck Vectors Semiconductor ETF appears to be setting up below a trigger line in a consolidation/continuation pattern. Monitor for the potential breakout.
LINK TO CHART – https://schrts.co/FjzCVSrm
Software
ALKT – Alkami Technology Inc.
Alkami Technology appears to be breaking out to 52-week highs with bullish volume.
LINK TO CHART – https://schrts.co/aQqsNxui
MSFT – Microsoft Corp.
Microsoft continues to break out from the pattern we’ve been highlighting.
LINK TO CHART – https://schrts.co/GeTdzEPf
PLTR – Palantir Technologies, Inc.
Palantir Technologies continues to act well as price action threatens to break out from its consolidation/continuation pattern.
LINK TO CHART – https://schrts.co/AxvZwZih
Staples
BRBR – Bellring Brands Inc
Bellring Brands continues to trend higher. Keep an eye on this uptrend.
LINK TO CHART – https://schrts.co/ZGKmvWSj
COCO – Vita Coco Company Inc.
Vita Coco Company continues to see bullish volume as price action sets up on the right side of a basing pattern. Monitor for the potential breakout.
LINK TO CHART – https://schrts.co/aHKmiQpt
WMT – Walmart Inc.
Walmart is consolidating below another new all-time high. Monitor for the continuation of the uptrend.
LINK TO CHART – https://schrts.co/mXCCErcK
Technology
AAPL – Apple, Inc.
Apple is acting well following a weak earnings report. Keep this chart on your watchlist and monitor for any signs of a breakout above the upper trend line of the pattern.
LINK TO CHART – https://schrts.co/PiAhgnUJ
FLEX – Flex Ltd.
Flex is consolidating near the apex of a continuation wedge after a whipsaw. Monitor for potential upside strength that could lead to a breakout.
LINK TO CHART – https://schrts.co/rHjSEQTs
GIB – CGI Inc.
CGI is pushing up against the trigger line. Monitor for a breakout, which could lead to a continuation of the uptrend.
LINK TO CHART – https://schrts.co/gZeNiyVT
To bring our weekend 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 Setup, the Workspace, and the Watchlists for emerging opportunities. Until next time, happy trading!
