Notice: The Weekend Report is provided for informational and educational purposes only and is not intended to be used as a stock-picking service or as financial advice. The charts and accompanying research are designed to support your analysis, serving as indicators rather than direct recommendations to buy or sell any security. The creator assumes no responsibility for actions taken by readers and strongly encourages individuals to fully understand the associated risks and potential outcomes before making investment decisions. Please note that any charts and/or information are intended to aid in research and should not be considered a definitive part of your personal trading strategy. Not all charts will lead to actionable buy or sell signals at any given time. Individuals should consider consulting a qualified financial advisor before making any investment decisions.
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SYS Daily Report – Weekend Edition
Mixed Signals Ahead of Fed Decision and Inflation Data
The stock market delivered a mixed performance as investors grappled with inflation data, rising Treasury yields, and looming Federal Reserve policy decisions. While tech-heavy indexes like the Nasdaq Composite posted modest gains, broader market indexes such as the S&P 500 and Dow Jones Industrial Average struggled to maintain momentum amid narrowing market breadth.
The Red-Light/Green-Light Breadth System
What Worked Last Week
S&P 500 Equal Weight ETF – Daily Chart
The Equal Weight S&P 500 just closed its tenth consecutive red day, underscoring the market’s reliance on the “Magnificent Seven” to sustain broader index performance—a trend we’ve highlighted in past reports. The last two times market breadth narrowed to this extent, in May and July, significant market bottoms followed, making the current divergence between breadth and index levels all the more remarkable, especially with markets sitting less than 1% off all-time highs.
SPDR S&P 500 ETF – Daily Chart
At the same time, it’s worth noting the bearish technical pattern emerging in the SPDR S&P 500 ETF (SPY), which could signal challenges ahead for the broader market if key support levels are breached.
Nvidia – Daily Chart
Adding to the intrigue, Nvidia (NVDA) is testing a multi-year trendline, presenting a critical technical pattern to watch. Meanwhile, semiconductors, tracked by the VanEck Semiconductor ETF (SMH), are flashing bullish signals in daily setups and options activity, offering potential opportunities despite the broader market’s uneven performance.
Even with these challenges, letting the strongest stocks and the best setups lead the way remains a sound strategy. Often, fears of market breakdowns overshadow the performance of resilient stocks that continue to climb higher. Effective position management, particularly scaling out of winning positions, can be a powerful tool in navigating such conditions. Instead of exiting a position entirely, scaling out in increments—selling 10-20% of the position to lock in gains while moving stops higher—allows investors to balance risk and reward. A mentor once told me, “Always start by doing the math.”
Stocks that appear extended often become even more extended, and trends can surpass expectations. A single or a few big winners can define a successful year, underscoring the importance of staying in positions that are trending higher over rising moving averages. Partial scaling provides the best of both worlds: locking in profits while staying in a winning trade, prepared to ride the trend further.
S&P 500 – Weekly Chart
The S&P 500 closed flat on Friday, recovering from earlier lows. For the week, the index slipped 0.6%, marking its first weekly decline in four. Despite this, the benchmark index maintains a robust 26.9% year-to-date gain and is trading above its 10-week or 50-day moving average. Technology and consumer discretionary stocks lent support, while communication services and materials sectors weighed on performance.
Nasdaq – Weekly Chart
The Nasdaq Composite edged up 0.1% on Friday and gained 0.3% for the week, achieving its fourth consecutive weekly increase. The tech-heavy index remains clear of all its major moving averages and has soared 32.7% year-to-date, driven by strength in tech leaders such as Alphabet (GOOGL) and Broadcom (AVGO). Notably, Broadcom surged nearly 25% following a strong earnings report, highlighting a 220% increase in AI-related revenue for the year.
Dow Jones Industrial Average – Weekly Chart
The Dow Jones Industrial Average lagged, falling 0.2% on Friday to extend its losing streak to seven sessions, its longest since 2020. The index ended the week down 1.8%, dipping below key technical levels like the 21-day exponential moving average but is still above the 10-week or 50-day moving average. Notable decliners included Nvidia (NVDA), which fell 5.75% on the week as investors shifted focus to competitors like Broadcom and Marvell Technology (MRVL).
Russell 2000 (ETF) – Weekly Chart
Small-cap stocks faced heavy pressure, with the Russell 2000 down 2.5% for the week. The index is approaching a critical test of its 10-week or 50-day moving average, reflecting broader market weakness outside of mega-cap tech.
10-Year US Treasury Yield
The 10-year U.S. Treasury yield climbed 25 basis points to 4.399%, its highest level in three weeks. The rising yield reflects investor concerns about inflation and potential delays in future Federal Reserve rate cuts. Higher yields pose challenges for equities, increasing borrowing costs and enhancing the relative appeal of risk-free assets. It’s also a clear signal from the bond market that inflation remains a persistent issue despite the Fed’s and government’s assurances. A simple trip to the grocery store tells the real story.
US Dollar – Weekly Chart
The U.S. Dollar Index remained steady as markets await clarity on the Federal Reserve’s monetary policy direction. Currency markets are expected to react to Fed Chair Jerome Powell’s comments during the upcoming policy meeting, particularly regarding inflation and economic growth forecasts. Price action is set up as a bullish flag at a potential trigger line.
Crude Oil – Weekly Chart
Crude oil prices rose sharply from the lower trendline of the pattern we’ve been charting, with U.S. crude futures gaining 6.1% to settle at $71.29 per barrel for the week. Supply constraints and geopolitical uncertainties underpinned the rally, boosting the energy sector.
TSX – Weekly Chart
Canada’s TSX Composite Index declined 1.6% for the week, its first weekly loss in six, falling to a three-week low of 25,274.30. The materials sector was a notable laggard, weighed down by falling gold and copper prices, with the group declining 1.7%. Energy and industrials also posted losses, while the technology sector outperformed, aided by a 9.1% gain in Celestica Inc (CLS.TO). The drop comes as Canadian markets face uncertainty over potential U.S. trade policies, with President-elect Donald Trump reiterating plans for tariffs on Canadian imports.
Copper – Weekly Chart
Copper prices softened after challenging the upper trendline of its technical pattern, adding to the woes of material stocks globally. The weakness reflects concerns about slowing demand in China, the world’s largest consumer of industrial metals.
Gold – Weekly Chart
Gold prices retreated from a failed breakout as rising bond yields and a stronger dollar dampened safe-haven demand. The pullback pressured mining stocks, further weighing on the materials sector.
Silver – Weekly Chart
Silver followed gold’s trajectory with a failed breakout, declining amid higher real interest rates. The metal’s industrial demand outlook remains clouded by global economic uncertainties.
Bitcoin – Daily Chart
Bitcoin (BTC) remained stable, hovering near the $100,000 mark, up over 300% year-to-date. Another breakout could be on deck as many digital asset-related stocks appear in our daily setups.
Ethereum – Weekly Chart
Ethereum (ETH) saw mild declines, closing the week just below the $4,000 mark. Keep a close eye for momentum to appear, as this giant weekly setup is extremely bullish.
Conclusion
The market’s mixed performance reflects a delicate balance between optimism in select mega-cap tech stocks and broader economic challenges. Rising Treasury yields, persistent inflation, and the Federal Reserve’s policy direction remain pivotal to near-term market dynamics. As investors prepare for the Fed meeting and additional economic data, caution is warranted, particularly with signs of narrowing breadth across key indexes. Tech dominance continues to drive the Nasdaq, but a broader rally may require stability in smaller caps and lagging sectors like materials and energy.
“The best traders manage risk like a business. Losses are expenses, but they never let the expenses get out of control.” – Michael Marcus
Now, onto the daily setups.
US Daily Setups
ASPI – ASP Isotopes Inc.
ASP Isotopes is attempting to set up below a horizontal resistance line.
LINK TO CHART – https://schrts.co/ZnQxKjIb
AVGO – Broadcom Inc.
Broadcom is breaking out from the technical pattern we highlighted, joining the $1 trillion market cap club.
LINK TO CHART – https://schrts.co/AyBNzIrb
BKKT – Bakkt Holdings, Inc.
Bakkt appears to be setting up along a significant horizontal resistance line.
LINK TO CHART – https://schrts.co/NHSqyTGE
BRPHF – Galaxy Digital Holdings Ltd.
Galaxy Digital is attempting to continue its uptrend above its upward-sloping moving average.
LINK TO CHART – https://schrts.co/ngCrGgZG
DEFTF – DeFi Technologies Inc.
DeFi Technologies is consolidating in the form of a potential bullish flag continuation pattern.
LINK TO CHART – https://schrts.co/rzzKAznk
MSTR – MicroStrategy Inc.
MicroStrategy is consolidating in the form of a potential bullish pennant continuation pattern as it gets added to the NASDAQ 100.
LINK TO CHART – https://schrts.co/kanPTMQT
ONDS – Ondas Holdings Inc.
Ondas is breaking out from the bottoming pattern we highlighted in the workspace, following unusual options activity.
LINK TO CHART – https://schrts.co/kanPTMQT
SMH – VanEck Vectors Semiconductor ETF
VanEck Vectors Semiconductor ETF is setting up near the apex of a significant multi-month consolidation/continuation pattern. Monitor for any potential breakout signals.
LINK TO CHART – https://schrts.co/ZyMtnMSb
TIGR – UP Fintech Holding Ltd.
UP Fintech is setting up below a potential trigger line.
LINK TO CHART – https://schrts.co/yXrqizKf
TSLA – Tesla Inc.
Tesla is breaking out to a new all-time high from a significant multi-year basing pattern. Monitor for signs of continued upside momentum as the PPO Momentum Indicator is just gaining traction.
LINK TO CHART – https://schrts.co/KFAnSbpy
Canadian Daily Setups
ARX.TO – ARC Resources Ltd.
ARC Resources continues to set up along the horizontal resistance/trigger line that we recently highlighted.
LINK TO CHART – https://schrts.co/IdzupXEd
DCBO.TO – Docebo Inc.
Docebo is working its way towards the apex of a consolidation area.
LINK TO CHART – https://schrts.co/hNKrAfmQ
DEFI.NE – DeFi Technologies Inc.
DeFi Technologies is consolidating in the form of a potential bullish flag continuation pattern.
LINK TO CHART – https://schrts.co/qMBuzkNW
ECN.TO – ECN Capital Corp.
ECN Capital is attempting to break out from the flagging pattern recently highlighted.
LINK TO CHART – https://schrts.co/UpCRPmvj
GLXY.TO – Galaxy Digital Holdings Ltd.
Galaxy Digital continues to move above its upward-sloping moving average, as per system rules outlined at the top of each report.
LINK TO CHART – https://schrts.co/raaUCAsQ
TCW.TO – Trican Well Service Ltd.
Trican Well Service appears to be setting up on the right side of a multi-month consolidation area.
LINK TO CHART – https://schrts.co/zrHWPwDB
VHI.TO – VitalHub Corp.
VitalHub continues to deliver as price action makes another new high.
LINK TO CHART – https://schrts.co/hnvZtuZG
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 – 2024-12-14
ONDS, QBTS, AVGO, SOUN, RGTI, RH, SERV, ASPI, MESO, DOGZ, IONQ, CRDO, MRVL, AAOI, OPFI, TIGR, UPST, CLS, RKLB, NNE, ALAB, CRNC, SGMO, LW, WBA, DAVE, NL, LFVN, REE, IKT, CIEN, BKKT, KINS, BRPHF, VRNA, QUBT, INDO, RIOT, ANET, WGS, TSM, NEOV, EOSE, NEXN, ELUT, MU, TSLA, QTUM, MSTR, RDW, VSCO, PLTR, PENN, BMA, DRUG, PGR, REVG, CAN, RAIL, SIEB, BTSG, FLXS, QFIN, CCB, AI, DAKT, BE, PL, LU, LGND, MOD, EDN, AS, AFRM, TARS, TPR, VICR, REPL, ARM, DCTH, HESM, DKS, CRAI, SMH, CNQ, ADUS, COHR, PTON, ERIE, LITE, BEAT, ESOA, LFT, ADPT, QURE, WSM, HOOD, SOFI, DEFTF, CALM, JFIN, MCY, AXR, MOH, TKNO, TER, MTSI, CSV, CURI, PYPL, BDN, FNGS, BOW, CDZI, IBIT, ARLP, KULR, FSLR, GBTC, CEPU, WEYS, GDS, BITO, NTB, CON, LSCC, RUM, GLBE, MIR, VITL, BTM, DOYU, ETON, COOP, DESP, RTX, DECK, TK, CBL, OLLI, QNST, LC, SRE, USO, YPF, SPG, ASAN, AXON, ROKU, DEI, FOUR, PTEN, EE, URBN, KTOS, CIBR, HACK, IP, CHWY, LNTH, SKE, RIVN, BBVA, DB, GGAL, MTUM, T, ADSE, BA, NOK, WYNN, JBL, CPSS, AXS, DJT, ACA, CRNT, VNO, CGBD, NBBK, TTMI, PDM, FFTY, SILA, SMTC, TDS, IBN, REYN, GBX, AZO, EQH, HCI, HEI/A, GL, DPG, ERIC, PPTA, ETHE, FN, IBCP, WIT, GCMG, SKWD, MVST, SRRK, USFD, DHF, QQQ, JKS, CIM, J, RELL, RLI, NCDL, CRWD, SNCR, FRT, MDGL, SPOT, EPAC, MARA, UVSP, INFY, BEPC, GEV, MOMO, ARGX, CHI, HD, IGIC, AXP, INBK, RL, BHR, LULU, VRT, ADEA, ECL, SRV, BIDU, FLEX, AROC, BITQ, MUSA, CME, SW, PFGC, RACE, GPI, IMMR, KIM, MOS, TBBK, VGT, ACLX, GAP, HSBC, PWR, SYBT, MAIN, XLK, CMPO, RCL, SBFG, LMAT, MPLX, SEER, XLY, BLOK, WMT, GRND, HOPE, LII, NBXG, USM, AMP, CCAP, FWONK, TRAK, DCO, MLAB, BNS, EAT, SUPV, NRP, GILD, L, TBRG, MTZ, PPC, AX, SYY, BTI, TWST, TAP, EFX, CVNA, IWF, PCAR, REAX, CW, ZTR, DAPP, FCF, V, CIB, LOMA, COCO, GBDC, LVS, TFC, FDP, IBTA, TG, BRT, FWONA, OMCL, OUT, UNFI, COST, CNP, FFIV, PLMR, GRMN, LYV, NIC, PLNT, REG, AAPL, EDR, ORLY, CHEF, NTRA, TSCO, FFIN, NI, ULTA, AAON, ALSN, APH, BF/B, CINF, HUT, LPLA, CHH, CTLT, FDS, FIBK, XMTR, BURL, APO, BRBR
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 – 2024-12-14
BTQ.NE, AVGO.NE, HBFG.CA, RBX.V, AIDX.TO, DND.TO, ECOR.TO, KEI.TO, IMP.TO, QIPT.TO, CLS.TO, NGEN.V, TH.TO, GLXY.TO, DRM.TO, MTA.V, TSLA.NE, MU.NE, DEFI.NE, NCI.V, VHI.TO, FFN.TO, ECN.TO, YGR.TO, EMO.V, AMRQ.V, AMX.V, CPX.TO, AOI.TO, TA.TO, ETL.V, GASX.V, PYPL.NE, CVE.TO, ATS.TO, SKE.TO, FC.TO, ARX.TO, BA.NE, HODL.CA, PPTA.TO, IFOS.V, VZLA.TO, RSI.TO, GRID.TO, BYD.TO, ILLM.TO, ETHH.TO, RECO.V, SOY.TO, DCBO.TO, BEPC.TO, DC/A.TO, NTR.TO, MR/UN.TO, MXG.TO, ATD.TO, ATD/A.TO, TCW.TO, MFC.TO, TSU.TO, PIC/A.TO, SGR/UN.TO, TPZ.TO, TCL/A.TO, BDI.TO, BNS.TO
