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
Welcome to the weekend report. We understand the importance of your time and value your feedback. With that in mind, we’ve decided to make an important change. We’ll no longer be publishing a Friday daily setups report. We’ve realized that it can be redundant, often repeating the same information and charts that you find in our weekend report. We’ve consolidated the Friday report into the weekend report to streamline our content and provide a more concise and comprehensive report. Now, sit back, relax, and enjoy the report.
SSIH
Greg is back with a fresh set of updated charts featuring his unique indicator, the SSI. As always, in the ever-changing landscape of trading, it’s crucial to remain vigilant and exercise caution. With all the uncertainty prevailing, there may never come a time when the guidance of the SSI is needed more. So, without further ado, let’s dive into this special edition of our nightly report, brimming with valuable insights and analysis.
This chart is as low as it got at any time in 2023. It really needs to get the bounce going.
This is at levels typically seen only in bear markets. As an example, the drop in Financials on Friday after the earnings from some of the big ones, was not very comforting.
This is typically where we want to get long, at least for a rally.
Bear market structure. The number of industries still going higher is almost nil. Only saw those levels during 2022.
Once again, this is a good time to look for a short-term bounce.
The chart I wrote about up top, this one shows both. Industries and other monitoring charts moving up vs. down. In 2022, the down cycle broke above this level and stayed up there for most of the year.
This chart suggests you may get a rally like June 2022, but it can fail quickly as well.
If the second half of these charts starts failing, the bear market resumes.
Market Commentary
The stock market rally displayed a mixed performance throughout the week, ending rather disappointingly. It’s becoming clearer that the recent uptick in the U.S. stock market is more likely a counter-trend advance within a broader, longer-term downtrend. This market struggle was particularly evident as prices encountered significant resistance levels at the 50-day moving average on the S&P 500, and the S&P 500 index mirrored this challenge with a modest 0.45% advance for the week.
S&P 500 – Daily Chart
The weekly chart provides a comprehensive overview, showcasing the prominent support and resistance levels and potential trigger lines.
S&P 500 – Weekly Chart
On Wednesday, the Nasdaq demonstrated an impressive performance, closing above its 50-day moving average, while leading stocks showcased significant positive momentum, fueling a sense of optimism. Nevertheless, as the week came to a close, the market took an unexpected turn. What was initially expected to be a supportive 50-day moving average abruptly transformed into a formidable barrier, establishing itself as a crucial resistance level. This shift led to a 0.2% decline in the Nasdaq for the week, primarily attributed to a notable 1.2% retreat on Friday.
Nasdaq – Daily Chart
The weekly chart provides a comprehensive overview, showcasing the prominent support and resistance levels and potential trigger lines.
Nasdaq – Weekly Chart
The Russell 2000, initially attempting to rebound from the lower trendline of the pattern we’ve been monitoring, ultimately reversed course and recorded a 1.5% weekly loss. This downturn culminated in the index closing at a six-month low, with price action on the brink of breaking below the lower trendline of the pattern, hanging by a slender thread.
Russell 2000 (ETF) – Weekly Chart
The TSX managed to stay above the lower support line of its trading range, concluding the week with a solid 1.1% gain, courtesy of a strong rebound in gold and oil prices from their recent lows.
TSX – Weekly Chart
The U.S. dollar saw a modest uptick, reaching 106.43. The index, which surged by 0.8% on Thursday, marking its most substantial one-day gain since March 15, closed the week with a 0.6% increase.
US Dollar – Weekly Chart
The Japanese yen recently gained 0.21%, standing at 149.50 per dollar. The euro rebounded from its low on Friday but slipped back to the lower 1.05 area. The British pound concluded the week within the mid 1.21 range, signifying a setback that likely foreshadows a period of renewed downside pressure, at least in the short term. The Canadian dollar saw a slight uptick on Friday. This was primarily influenced by a sharp oil price increase and growing expectations for another interest rate hike by the Bank of Canada later this month.
Currencies
Treasury yields, which had been on the rise recently and exerting downward pressure on stocks, saw a slight decrease on Friday. The yield on the benchmark 10-year Treasury notes dipped to 4.63%, down from 4.71% on Thursday. It’s important to note that yields tend to fall as prices increase.
10-Year US Treasury Yield
The yield on the 2-year Treasury note saw a decrease of 1.7 basis points, falling from 5.07% on Thursday to 5.04%. Over the week, it declined by 2.5 basis points. The yield on the 10-year Treasury note exhibited a more significant drop, with an 8.2 basis point decrease from 4.71% on Thursday to 4.63%. This marks the most substantial weekly decline, amounting to 15.5 basis points, since July 14. In the case of the 30-year Treasury, its yield fell by 9.2 basis points to 4.78%, taking into account reopening levels. This resulted in a notable 16.4 basis point weekly drop, marking its most significant decline since the period ending March 10.
Bond Yields
The CRB index has indeed rebounded from the lower support line that we highlighted last weekend. This resurgence can be attributed to the rapid increase in oil prices. As we’ve been monitoring, the CRB index often closely mirrors the price of crude oil due to its substantial weighting within the index.
CRB Index – Weekly Chart
The weekly chart for crude oil offers a comprehensive overview, highlighting the key support and resistance levels, along with potential trigger lines. It closely mirrors the behavior of the CRB index, providing valuable insights into market trends.
Crude Oil – Weekly Chart
Copper concluded the week with lower prices, as it hangs precariously from the lower trendline of the pattern, akin to a drop of water teetering on the edge of a building’s roof, on the verge of falling. Stay tuned for further developments.
Copper – Weekly Chart
Gold made a strong rebound from its oversold level, coming to a halt right at the underside of the 200-day moving average. Currently, there is no clear technical advantage. A break above the 200-day moving average would be a bullish signal. Conversely, if the 200-day moving average proves to be a barrier, profit-taking is likely to occur.
Gold – Daily Chart
Taking a broader view by examining the weekly chart of gold, one can identify a descending channel situated to the right of a substantial basing pattern. This pattern is positioned below the all-time highs. A breakthrough from this descending channel would also propel prices above the 200-day moving average. The upper and lower trendlines of this channel can be seen as a binary event, signifying a move either above or below these lines, which could have significant implications for the future direction of gold.
Gold – Weekly Chart
Silver continues to consolidate near the apex of the triangle-basing pattern we’ve been monitoring.
Silver – Weekly 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. 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.
This section highlights setups from each watchlist, pinpointing potential momentum opportunities. You will find a link to each sector watchlist for your reference. It’s important to keep in mind that setups may not always be immediately evident, particularly for sectors currently out of favor. This is because sector correlations can shift with changes in overall market sentiment, resulting in weeks when prominent setups may not be readily apparent.
The Israel-Hamas conflict had a noticeable impact on financial markets on both Monday and throughout the week. Worries over an escalating Middle East conflict drove up oil prices and bolstered the performance of defense stocks, as reflected in the ‘What Worked Last Week’ chart, with energy and industrials leading the way. The prominence of defensive sectors is evident as the price action of the indexes continued to falter on Friday, failing to break through resistance levels.
Notably, gold warrants an honorable mention here, as it has not been prominently represented within the materials sector on the chart. Given the recent developments, its outstanding performance last weekend in this volatile market is worthy of acknowledgment.
Keep a close watch on the Daily Setups, as there seems to be a theme emerging in the sectors mentioned above, along with healthcare names. It’s important to remember that in this volatile market, themes can be short-lived.
What Worked Last Week
Industrial Defense
Link – Industrial Defense Watchlist
AVAV – AeroVironment Inc.
AeroVironment is surging following a breakout retest just below its 52-week high. Keep a close watch on this stock for the potential continuation of its uptrend.
LINK TO CHART – https://schrts.co/KveubNgI
DRS – Leonardo DRS, Inc.
Leonardo DRS is experiencing a breakout from a basing pattern, propelling it to a fresh 52-week high.
LINK TO CHART – https://schrts.co/JxDJpjbP
GD – General Dynamics Corp.
General Dynamics is making a noteworthy breakout from a significant falling wedge base, and it’s worth noting that the weekly PPO momentum indicator is on the verge of breaking above the zero line.
LINK TO CHART – https://schrts.co/QapgYikM
Canadian Energy
Link – Canadian Energy Watchlist
ATH.TO – Athabasca Oil Sands Corp.
Athabasca Oil Sands is emerging higher from a bull flag continuation pattern just below its recent highs.
LINK TO CHART – https://schrts.co/ZVgDekce
CNQ.TO – Canadian Natural Resources Ltd.
Canadian Natural Resources continues to show upside momentum, stemming from a recent period of area consolidation.
LINK TO CHART – https://schrts.co/QVxZgkbN
SHLE.TO – Source Energy Services Ltd.
The Source Energy Services setup continues to exhibit strength as it breaks out from its continuation wedge.
LINK TO CHART – https://schrts.co/AjbrGuYK
Energy
EOG – EOG Resources, Inc.
EOG Resources is poised below the upper trendline of a notable consolidation/continuation pattern, positioned below recent highs. Monitor for a potential breakout.
LINK TO CHART – https://schrts.co/qWrMNguh
LNG – Cheniere Energy, Inc.
Cheniere Energy is in the process of breaking out from a substantial consolidation/continuation pattern.
LINK TO CHART – https://schrts.co/CPFWWEpE
NOG – Northern Oil and Gas, Inc.
Northern Oil and Gas appears to be forming a bull flag continuation pattern. Watch for a potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/EYNbZnhq
XLE – Energy Select Sector SPDR Fund
The Energy Select Sector SPDR Fund ETF is attempting to break out from the handle on the right side of a cup base pattern.
LINK TO CHART – https://schrts.co/YJagGXvJ
Communication Services
Link – Communication Services Watchlist
CHTR – Charter Communications Inc.
Charter Communications is steadily setting up near the apex of a bullish continuation pennant. Watch for a potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/cgAgvzBG
IDT – IDT Corp.
IDT is showing acceleration off its low with bullish volume, and it’s trading above horizontal resistance.
LINK TO CHART – https://schrts.co/JGtETPEx
Financial
JPM – J.P. Morgan Chase & Co.
J.P. Morgan is attempting to break out from a continuation wedge or a bull flag continuation pattern.
LINK TO CHART – https://schrts.co/hPTBSeFg
Healthcare
CAH – Cardinal Health, Inc.
Cardinal Health is attempting to break out from a multi-month continuation pattern.
LINK TO CHART – https://schrts.co/PJrAavYj
HUM – Humana, Inc.
Humana is forming a significant consolidation/continuation pattern just below its all-time highs. Keep an eye on this setup for a potential breakout.
LINK TO CHART – https://schrts.co/mZHuDEkq
MCK – McKesson Corp.
McKesson is breaking out to all-time highs in a weak market.
LINK TO CHART – https://schrts.co/bNrqjWbc
UNH – Unitedhealth Group, Inc.
The Unitedhealth setup maintains its upward acceleration from the significant consolidation/continuation pattern we’ve been highlighting.
LINK TO CHART – https://schrts.co/ChJGUUhR
Industrial
BWXT – BWX Technologies, Inc.
BWX Technologies is consolidating just below new all-time highs while staying within its established uptrend. Monitor for a potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/EcYgBNEs
FCN – FTI Consulting, Inc.
FTI Consulting is consistently setting up at the apex of a substantial area of consolidation. Watch for a potential continuation of the uptrend.
LINK TO CHART – https://schrts.co/pNsSpaiZ
INSW – International Seaways, Inc.
International Seaways is showing persistent signs of setting up for new highs on the right side of a substantial basing pattern. Watch For a potential breakout.
LINK TO CHART – https://schrts.co/XsIFawxN
Precious Metals
Link – Precious Metals Watchlist
AGI – Alamos Gold Inc.
Alamos Gold is currently consolidating sideways within a falling channel. Monitor this setup for a possible breakout.
LINK TO CHART – https://schrts.co/pswQxupV
EGO – Eldorado Gold Corp.
Eldorado Gold is pressing against the upper trendline of a falling wedge pattern. Keep a watchful eye for any indications of a breakout, as this could signify a potential change in the stock’s trajectory.
LINK TO CHART – https://schrts.co/kJxEezkm
WDO.TO – Wesdome Gold Mines Ltd.
Wesdome Gold Mines is positioning itself on the right side of a substantial bottoming base. Monitor for a continuation of the upside momentum, which has the potential to lead to a breakout.
LINK TO CHART – https://schrts.co/eMWpSXzu
Staples
BRBR – Bellring Brands Inc
Bellring Brands is maintaining its upward trajectory as it reaches another new 52-week high. This consistent performance highlights the stock’s positive trend.
LINK TO CHART – https://schrts.co/whYVmFMT
Conclusion
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. See the recent scan results 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.
