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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Sample Trading System
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SYS Daily Report – Weekend Edition
Markets Rebound as Inflation Cools
The stock market closed a turbulent week with a rebound Friday, buoyed by cooler-than-expected inflation data and optimistic remarks from Federal Reserve officials. While major indexes posted gains for the day, the week ended on a sour note, reflecting the volatility and uncertainty that continue to dominate markets. Here is a comprehensive breakdown of the day’s activity and its implications.
Friday’s recovery was driven by the Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge. The PCE rose 2.4% annually in November, below economists’ expectations of 2.5%, while core PCE increased 2.8%. These figures bolstered hopes for rate cuts in 2025, despite the Fed’s hawkish outlook earlier in the week.
All 11 sectors of the S&P 500 ended higher Friday, though all posted losses for the week. The session was led by real estate and technology, each up 1.8%, while consumer staples recorded the smallest gains. The communication services sector continues to lead year-to-date performance with a nearly 35% gain. In contrast, materials and energy are nearly flat for the year following recent declines. This rebound was in line with Thursday’s report, which suggested that sentiment appeared washed out and major indexes were at levels where a bounce was likely. Next week, attention will focus on the probability that stocks and commodities will move inversely to the U.S. dollar and the 10-year Treasury yield, as observed on Friday.
What Worked Last Week
The Red-Light/Green-Light Breadth System
S&P 500 – Weekly Chart
The S&P 500 rose 1.1% Friday, regaining its 50-day moving average (10-week moving average), but still recorded a 2% weekly loss. The benchmark index’s year-to-date gain stands at 24.3%, despite two consecutive weeks of declines. Friday’s recovery, driven by tame inflation data, signaled resilience but underscored the market’s sensitivity to Federal Reserve policy shifts.
Nasdaq – Weekly Chart
The Nasdaq Composite advanced 1% Friday, reclaiming its 21-day exponential moving average while holding above its 50-day moving average (10-week moving average), though it declined 1.8% for the week. With a 30.4% year-to-date gain, the index remains a standout performer.
Dow Jones Industrial Average – Weekly Chart
The Dow Jones Industrial Average gained 1.2%, its best daily performance since last month’s postelection rally. Despite Friday’s recovery, the index ended the week down 2.3%, marking its third consecutive weekly loss. Stocks like Nvidia (NVDA) and UnitedHealth (UNH) contributed significantly to Friday’s gains, but broader weakness in the industrial sector weighed on weekly performance.
Russell 2000 (ETF) – Weekly Chart
The Russell 2000 rose 0.9% Friday but suffered a steep weekly decline of 4.8%. Small-cap stocks continue to face headwinds from rising interest rates and economic uncertainties. The index’s ability to hold above its 200-day moving average (40-week moving average) is a positive signal, but its vulnerability to macroeconomic pressures remains evident.
10-Year US Treasury Yield
The 10-year U.S. Treasury yield closed at 4.524%, declining modestly Friday but up 37 basis points over two weeks—the steepest gain in over two years. Rising yields have exerted pressure on equity markets, particularly in rate-sensitive sectors like real estate and utilities. Investors remain cautious about the potential impact of sustained high yields on corporate earnings and economic growth. However, Friday’s pullback also correlated with the dollar as inflation data suggested a more measured approach to monetary easing.
US Dollar – Weekly Chart
The U.S. Dollar Index (DXY) weakened on Friday but closed the week high. The pullback on Friday provided relief to commodities and export-oriented equities. The decline reflects shifting expectations for Federal Reserve rate cuts in 2025, as inflation data suggested a more measured approach to monetary easing.
Crude Oil – Weekly Chart
Crude oil prices fell 1.8% for the week, settling at $69.46 per barrel. The decline was driven by concerns over global demand and rising U.S. crude inventories. However, seasonal factors, including colder weather, could provide near-term support for energy prices.
TSX – Weekly Chart
Canada’s TSX Composite Index snapped a six-day losing streak, rising 0.8% Friday to close at 24,599.48. Despite the daily gain, the TSX was down 2.7% for the week, its largest decline since September 2023. Political uncertainty, coupled with global economic pressures, continues to weigh on Canadian equities. The materials sector led gains Friday, benefiting from higher gold and copper prices.
Copper – Weekly Chart
Copper prices continued to fall this week as price action chops between the two trendlines of a wedge pattern.
Gold – Weekly Chart
Gold prices rose Friday, buoyed by the weaker dollar and safe-haven demand. The metal’s performance highlights continued investor caution amid geopolitical and economic uncertainties. Year-to-date gains in gold remain robust, driven by persistent inflationary pressures.
Silver – Weekly Chart
Silver prices showed limited movement this week, reflecting mixed sentiment in precious metals markets. While gold rallied on safe-haven demand, silver’s industrial uses tied it more closely to economic growth concerns, tempering gains.
Bitcoin – Weekly Chart
Bitcoin rebounded from its 50-day moving average to $96,377.74 Friday after falling below $93,000. The cryptocurrency remains highly volatile, though it continues to attract institutional interest. The 50-day moving average is a key level to watch for the bulls
Ethereum – Weekly Chart
Ethereum rebounded from its 10-week and 40-week moving averages on Friday, critical levels that must hold to sustain the bullish outlook.
Conclusion: Setting the Stage for a Santa Claus Rally
Friday’s market action provided hope for a Santa Claus Rally, defined by gains in the final five trading days of December and the first two of January. At the same time, inflation data and dovish Fed commentary offered relief, but underlying pressures persist, including elevated Treasury yields, geopolitical uncertainties, and potential tax-related selling. Investors should remain cautious, focusing on selective buying opportunities and adhering to disciplined risk management.
Looking ahead, markets will closely monitor upcoming economic reports, including consumer confidence, durable goods orders, jobless claims, and developments in the energy and metals markets. With 2024 nearing its end, the interplay between inflation trends, Fed policy expectations, and corporate earnings will likely dictate the trajectory into the New Year.
“To master risk, you must master yourself. Define your limits and stick to them.” – Jesse Livermore
Now, onto the daily setups.
US Daily Setups
DOCS – Doximity Inc.
Doximity is attempting to move higher from a continuation pattern. Notably, the moving average is acting as the lower trendline of the pattern, providing a key support level to watch for potential confirmation of the breakout.
LINK TO CHART – https://schrts.co/cFYtreyS
GOOGL – Alphabet Inc.
Alphabet is testing its upward-sloping moving average, forming a potential bullish flag. Monitor closely for signs of a breakout that could confirm the continuation of its upward trend.
LINK TO CHART – https://schrts.co/NcUYaVpj
INOD – Innodata Inc.
Innodata, highlighted in our institutional spotlight yesterday, is now attempting to break out from its continuation pattern. This setup warrants close monitoring for confirmation of a sustained move higher.
LINK TO CHART – https://schrts.co/icnmYyFT
KINS – Kingstone Insurance Co.
Kingstone Insurance is attempting to break out from a bullish flag continuation pattern near the 52 level. Monitor closely for confirmation of a sustained upward move.
LINK TO CHART – https://schrts.co/icnmYyFT
NVDA – NVIDIA Corp.
Nvidia continues to hold above its recent breakout line, suggesting strength and the potential for further upside if this level remains intact.
LINK TO CHART – https://schrts.co/izUzJuvA
OKLO – Oklo Inc.
Oklo continues to form a potential continuation pattern, supported by a strong volume profile. A textbook setup would display a surge in volume at the beginning of the pattern, a contraction as the pattern develops, and increasing volume as price action attempts to break out. This chart exemplifies those characteristics and could easily be highlighted as a textbook example. Monitor closely for any potential breakout signals.
LINK TO CHART – https://schrts.co/crWWNHPc
SMWB – Similarweb Ltd.
Similarweb is attempting a 52-week high breakout, supported by strong volume. Monitor closely for confirmation of a sustained move higher.
LINK TO CHART – https://schrts.co/eisyDYed
Canadian Daily Setups
ECN.TO – ECN Capital Corp.
ECN Capital continues to demonstrate positive price action following its continuation pattern breakout, signaling potential for further upside momentum.
LINK TO CHART – https://schrts.co/VcXhkYGW
GASX.V – NG Energy International Corp.
NG Energy continues to appear on momentum scans, making it a noteworthy addition to your watchlist for potential trading opportunities.
LINK TO CHART – https://schrts.co/fxNiQKRG
HODL.CA – Sol Strategies Inc.
Sol Strategies is consolidating just below its 52-week high, suggesting potential strength as it holds near this key resistance level. Monitor for signs of a breakout.
LINK TO CHART – https://schrts.co/byidYXsi
NCI.V – NTG Clarity Networks Inc.
NTG Clarity Networks continues to develop on the right side of its multi-month base, indicating a potential setup for a breakout if momentum builds.
LINK TO CHART – https://schrts.co/DaEBPHvu
PPTA.TO – Perpetua Resources Corp.
Perpetua Resources is forming a bullish flag just below its 52-week high, signaling potential strength if a breakout occurs.
LINK TO CHART – https://schrts.co/ugaGWATA
VNP.TO – 5N Plus Inc.
5N Plus is consolidating just below its 52-week high, suggesting potential strength as it holds near this key level.
LINK TO CHART – https://schrts.co/TSVHSQhM
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 – 2024-12-21
ELUT, XMTR, BTDR, CKPT, RDW, PSNL, MNKD, PLTR, INOD, LENZ, KINS, APP, CCL, REAL, SRRK, VEON, ARQT, LUNR, VSCO, NEXT, NCLH, CLBT, AXGN, MDGL, PRAX, GKOS, BLFS, DOCS, TOST, VCTR, CEE, HPE, RSI, MGNI, CHWY, WRBY, ONON, DTM, PMTS, ANET, EQH, MTZ, BROS, ELDN, WEAV, CRWD, Z, WLFC, KVYO, ARES, FCNCA, WGS, DECK, GRND, CLS, MRVL, FTNT, ATAT, WTM, GLBE, FOUR, CRDO, PTCT, OSW, SSNC, DUOL, ALLT, RBLX, DASH, VRNA, UAL, AXP, AAPL, CMPO, CIEN, TW, ZM, BMY, LITE, MIR, WIX, TARS, MRCY, PRM, GOOG, PRMW, MMM, OWL, EBAY, AEP, BMA, ENFN, KRNT, LUV, RDVT, NOW, FNMA, HLIT, TGNA, FOX, HURN, BL, BURL, KR, YPF, ESQ, MAIN, USM, FOXA, ADUS, DE, LX, TME, WST, FLUT, TSN, IBEX, JETS, GBDC, PPL, TDG, CYBR, CLOV, USFD, GPI, IBKR, BLK, GDDY, AZO, CRNC, EW, SWI, BLX, PEGA, XRT, ALKT, SLM, CIBR, RYTM, AVGO, C, DUKE, HG, LFT, QBTS, CAH, IWF, OPRA, VUG, HACK, SG, ULTA, OPY, RVLV, HTGC, SLQT, LAUR, ROAD, KD, GAP, TGLS, HESM, JBT, CCAP, FNGS, ELMD, MA, HTHT, QFIN, SAP, V, SNAP, QQQ, ETR, TBBB, UBER, ANF, BSY, GMED, PAR, AEE, EQT, TDS, NFLX, CI, NL, PRIM, AMZN, CME, MSCI, ALC, MOMO, OMER, IHG, USO, ATEN, BBSI, CSV, JNPR, HON, COCO, INFN, TER, EPAM, EXE, MYTE, CHKP, OB, DKS, CDNS, MLAB, MNOV, HLIT, GDYN, JKHY, NEOV, PYPL, CGBD, EDR, CRTO, BSX, BTI, ADSE, DOCU, TIGR, AQST, HSBC, OLLI, HQY, K, CLX, BA, AUR, JANX, OPFI, FWONA, MAGS, EXTR, LPLA, KMX
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 – 2024-12-21
PUR.V, HODL.CA, BB.TO, ALDE.V, AIAI.CA, HCU.V, NDA.V, RUP.TO, AUMC.CA, NURS.V, CNE.TO, NCI.V, BLDP.TO, ETG.TO, TLRY.TO, BRM.V, OGI.TO, FIH/U.TO, SLS.TO, CNL.TO, ATZ.TO, PPTA.TO, ZDC.V, GTE.TO, GTII.CA, CWB.TO, PNG.V, CAE.TO, SDE.TO, GLXY.TO, PRB.TO, BLCO.TO, TVE.TO, HBFG.CA, VEGN.CA, NVDA.NE, WILD.TO, ET.TO, KSI.TO, NFG.V, CRON.TO, LFE.TO, SPB.TO, GRA.TO, BTQ.NE, GOOS.TO, TCL/A.TO, MTY.TO, ARG.TO, ECOR.TO, NFI.TO, EXE.TO, GASX.V, FDR.V, STC.TO, ABXX.NE, CLS.TO, HITI.V, CEF.TO, KRY.V, WED.V, AAPL.NE, ECN.TO, VNP.TO, AKT/A.TO, SEI.V, GOOG.NE, SKE.TO, CVO.TO, EIF.TO, ORA.TO, ATD.TO, ATD/A.TO, AVGO.NE, TSAT.TO, MDA.TO, TOY.TO, ENB.TO, FWZ.V, BLN.TO, ENS.TO, EFN.TO, CSCO.NE, GSY.TO, MSA.TO, SOBO.TO, WSP.TO, SGD.V, LIRC.TO, WELL.TO, ATRL.TO, RCH.TO, ILLM.TO, SBBC.V, PHYS.TO, CDAY.TO, DAY.TO, ENGH.TO, BPF/UN.TO, VHI.TO, GWO.TO, IFC.TO, VERS.NE, CPX.TO, MX.TO, ERE/UN.TO, UBER.NE, NICU.V, DHT/UN.TO, AMZN.NE, DFN/PA.TO, HME.V, ALA.TO, BA.NE, FFN/PA.TO, SVM.TO, SSRM.TO, ALS.TO, PIF.TO, EMA.TO, GIB/A.TO, TNZ.TO, ARE.TO, KEC.TO, GEI.TO, BIR.TO, CEU.TO, PYPL.NE, DXT.TO, FFH.TO, HISU/U.TO
