SYS Research – Weekend Report – Sunday, October 22, 2023

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 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



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.

The extreme weakness in Europe and some weakness in Asia could suggest this to be a big bear market. Canada’s not exactly a rose amongst thorns, so it’s been America with its growth in infrastructure and semiconductors that have been better. Healthcare expansion like LLY and some of the new technologies in health care have helped with the broad strength in America.

This area at the top is often where rallies commence. We’ve just wrapped up the earnings period and options expiration day on Friday. Historically, this juncture has often served as a potential catalyst for a directional change, much like what we observed in July, where it marked the market’s peak within a few days.

We have earnings from AMZN – Oct 26, MSFT Oct 24, and META Oct 25 next week. If they rally, I would watch to see if an earnings rally is sold within a few days. Tesla wasn’t great. So, the hedge funds need to start buying something to push this market up. So far, they have been sellers.

Very few industries are still strong…It was energy, and that is starting to leak as well. But with oil so important in war, it may be able to hold up. When it starts to be sold, it will accelerate lower. So unless some industries break higher very soon, this market can go a lot lower.

This is definitely a bear market setup. Like the period of 2022, not like 2023.

A very simple look. Are the majority of the PPOs from the industries, sectors, etc, above or below zero? The answer is that more are below zero and above. When that happens, this typically gets sold off, like a huge bear market.

Institutional investors are not holding groups up; they are letting them sell now.

Hardly any groups are just off the highs. The big lows of COVID-19, October 2022, and December 2022 were big buy points. But the majority of groups are awful, or almost awful. This one, just off the highs, has to start to rally very soon, or the selling could start moving down 3%, 4%, or 5% a week if buyers don’t start supporting. Right now, it’s very clear hardly anything is desirable. Gold starting to improve, and oil has held up. We might see rotation into bear market cash flow companies like utilities and healthcare, leaving the broad industries to be heavily sold.

The SSIH PPO is fading. Staying below 25%… Not good.

The SSIF PPO is rolling over from a high level, with a lot of stock price rally. This could fall hard!

The SSIQ PPO broke a big downtrend, but the price rally failed to follow through. Textbook head and shoulder pattern with a backtest that failed.

In summary, three critical concerns are at the forefront. Firstly, the global landscape appears weakened, or to put it bluntly, the rest of the world is ‘W-E-A-K..’ Secondly, the world is teetering on the edge of multiple geopolitical tensions, raising the specter of a third major conflict. Any potential flare-up in regions like Taiwan or South Korea could be a catalyst for significant trouble. The recent selling following events in Israel and Gaza underscores the gravity of the situation.

The second major issue is the overall global weakness, with interest rates dampening both business and retail sectors. This pattern resembles the cracks that emerged in 2000 and 2007, and we may be on a similar troubling cycle in 2023. High interest rates, after decades of being relatively low, do not easily become the new norm.

Furthermore, as investors in properties like Airbnb face challenges with regulatory changes and remote working dynamics shifting, the real estate market is experiencing a shift reminiscent of the 2005-2007 highs. This situation could lead to a rotation in the real estate market, as interest rates remain high, revenues drop, and the market becomes flooded with properties for sale.

The third issue is the domino effect of selling that tends to occur once a downward cycle starts. The market needs a broader rally to counter these challenges, and with options expiration near earnings now behind us, it needs to happen soon.

Best regards,


Market Commentary

Last week, the stock market faced significant challenges, primarily due to rising Treasury yields and negative reactions to corporate earnings reports. The Nasdaq came dangerously close to falling below its September 27th low, while small caps hit their lowest point in a year. Even many of our leading stocks displayed vulnerability, with several stumbling on Friday. The market tried to start the week on a positive note, but it met resistance when approaching the formidable 50-day moving average, resulting in notable declines over the last three sessions.

The Dow Jones Industrial Average fell 1.6% during last week’s trading. The S&P 500 index tumbled 2.4%. The Nasdaq composite sold off 3.2%.

On Friday, stocks and bonds experienced turbulent fluctuations, likely reflecting the caution and uncertainty of investors. The S&P 500 also had a tough day, slipping by 1.3%. Its price dipped below the crucial 200-day moving average and almost breached recent lows. Although it’s still close to a potential support level, the current test of potential support doesn’t offer much reason for optimism.

S&P 500 – Daily Chart

The Nasdaq endured the heaviest losses in the market, plunging by 1.5%. This technology-focused index continued its decline after encountering resistance at the 50-day moving average, prompting concerns that it may soon approach the pivotal 200-day moving average threshold, all while it currently tests the lower boundary of its trading channel.

Nasdaq – Daily Chart

Expect increased market volatility in the week ahead as the spotlight shines on the earnings reports of the “Magnificent Seven” stocks, which include industry heavyweights like Microsoft, Google, Amazon, and Meta. These earnings reports are not just pivotal; they have the potential to wield substantial influence over critical sectors and the broader market.

Small-cap stocks, represented by the Russell 2000 index, encountered a challenging period, declining by 2.3% and reaching a 52-week low. The price action has now closed below the lower support line of its pattern.

Russell 2000 (ETF) – Weekly Chart

In the past week, the 10-year Treasury yield saw a remarkable surge of nearly 30 basis points, reaching 4.93%. Thursday saw a momentary touch of 4.996%, the highest level observed since 2007. The ongoing ascent of the 10-year Treasury yield presents a formidable obstacle to envisioning a sustained market rally. Despite a pullback on Friday, there are no clear indications that the 10-year bond yield is stabilizing or experiencing a substantial retreat.

10-Year US Treasury Yield

The current major weight on the market is the Federal Reserve’s ‘higher for longer’ stance, which is what brought the 10-year Treasury yield close to the 5% mark. Many view the 5% level as a potential tipping point for the economy where things start to break.

The ‘higher for longer’ stance isn’t the sole driver behind the surging yields; the U.S. fiscal deficit expansion also exacerbates significant supply and demand imbalances. The Treasury Department has been increasing the sizes of its auctions for U.S. Treasury bills and notes, injecting more government bonds into the market as they continue with its “we don’t care” spending approach, often humorously referred to as “the money printer goes brrrr.”

Simultaneously, the Federal Reserve is engaged in quantitative tightening, enabling Treasury bonds to roll off its balance sheet and reducing its holdings of Treasuries by approximately $650 billion over the past year. This occurs against the challenging scenario of a $33 trillion U.S. “debt death spiral.” 

Concurrently, natural demand for these bonds has dwindled as foreign buyers, including countries like China, have gradually reduced their holdings of U.S. Treasuries due to geopolitical considerations and other economic factors.

Another factor contributing to the increase in the 10-year yield is the upsurge in yields in other major economies. Notably, Japanese yields have reached their highest levels since 2012, rendering them more appealing to domestic buyers. Historically, Japan has been the largest foreign holder of U.S. Treasuries, and the uptick in its government bond yields may potentially have diverted demand away from U.S. government bonds. In summary, there’s an oversupply of bonds relative to potential buyers in the current market dynamics. It’s a total bond market circus, and things are a hot mess!

Considering all these factors, it’s important to remember that bond markets can occasionally overshoot. There’s still a chance that yields may breach the 5% threshold. But it’s worth noting that in the past, 10-year Treasury yields have often reached their apex before or alongside the peak in the Fed funds rate. So, if the Fed is to wind down its rate hikes, there’s a possibility that rates are edging closer to their highest level in the short term. Fingers crossed!

I came across an interesting chart of credit default swaps. Feel free to draw your own conclusions from it.

On the other hand, the yield on the 2-year Treasury decreased by 8.9 basis points to reach a one-week low of 5.07%. Over the week, it experienced a modest 3 basis point increase. In contrast, the 10-year Treasury yield saw a drop of 6.3 basis points to 4.93% from Thursday’s level of 4.99%, following a significant 29.6 basis point increase for the week. This marks the most substantial weekly gain since the period ending April 8. The 30-year Treasury yield also fell slightly by 1.4 basis points to 5.09% from Thursday’s 5.10%, despite a notable 31 basis point increase for the week – the most substantial weekly gain since October 21.

Bond Yields

Despite the surge in Treasury yields, Bitcoin and gold are demonstrating remarkable resilience and seem to be setting up on the right side of substantial basing patterns, suggesting the potential for breakouts. This is evident in the fact that gold futures have surged over 6% this month, and Bitcoin gained 3.3% during the same period. The presence of geopolitical risks and turbulence in the Treasury market is providing substantial support for both assets. Notably, influential investor Paul Tudor Jones has indicated the possibility of a substantial $40 billion influx of buying interest in the gold market, particularly if a recession were to occur, making the current environment notably favorable for both Bitcoin and gold.

Furthermore, in the current economic landscape, where the Federal Reserve grapples with a daunting $33 trillion U.S. “debt death spiral,” analysts at Jefferies have sounded a warning. They foresee a scenario in which the Fed may be compelled to reignite its money-printing activities, potentially resulting in a weakened U.S. dollar and a surge in Bitcoin prices that rivals the appeal of gold.

As mentioned earlier this week, the Securities and Exchange Commission (SEC) faced a setback as it failed to appeal the Grayscale lawsuit ruling. This development has set a ticking clock, granting the court seven calendar days from the previous Friday to issue its final mandate. The mandate holds the potential to instruct the SEC to greenlight the conversion of GBTC into a Bitcoin spot exchange-traded fund (ETF). The approval of the first spot ETF could potentially trigger a domino effect, compelling the consideration of other pending applications. A breakout from the basing pattern on the Bitcoin chart would be regarded as bullish, signaling the continuation of the upward trend initiated from the 2023 low.

Bitcoin – Daily Chart

Much like the scenario with Bitcoin, a breakout in gold’s price from the basing pattern on the weekly chart would be seen as a bullish indicator, suggesting the potential for the uptrend to continue and for the price to surge to a new all-time high, successfully overcoming all resistance levels. This situation evokes the age-old wisdom: “The larger the base, the greater the space.” Notably, this basing pattern has been unfolding over the past four years in the gold market as price action remained in a sideways consolidation. Watch for a breakout.

Gold – Weekly Chart

The dollar’s rally, which had surged to a 10-month high on October 3, has encountered obstacles despite benchmark 10-year Treasury yields continually reaching new 16-year highs. Looking at the charts, the recent lackluster performance of the DXY index highlights a slightly weakened tone in the overall USD since its peak in late September. If the index dips below the 105.08 mark, it may indicate the potential for further softness. Additionally, some analysts point out that the crowded number of investors holding dollars could be a factor restraining further upward momentum.

US Dollar – Weekly Chart

On Friday, the dollar briefly touched the closely monitored 150 level against the JPY, raising concerns about potential Japanese monetary intervention. Conversely, the GBP faced pressure, hitting a five-month low against the EUR and encountering USD headwinds due to weak retail sales data. Despite a strong USD and rising U.S. yields this week, the EUR displayed impressive resilience. In an unexpected turn, the CAD exhibited strength against the USD amidst challenging conditions for commodity currencies. This gain coincided with declining stock markets and domestic data showing reduced retail sales, reinforcing expectations for the Bank of Canada’s unchanged stance in the upcoming week.


The CRB index and crude oil price action continue to exhibit a close correlation, with price action shaping a potential bull flag pattern. Given the ongoing geopolitical risk, monitoring this closely is essential, as price movement could sway in either direction depending on the outcomes.

CRB Index – Weekly Chart

Crude Oil – Weekly Chart

On Friday, the TSX index experienced a decline, reaching a two-week low, primarily due to pressure on economically sensitive sectors, specifically energy and financials. This decline was significantly influenced by the recent uptick in long-term borrowing costs, which has weighed on investor sentiment. Financials saw a notable 2% drop, hitting a one-year low, while energy declined by 1.5%, with oil settling 0.33% lower at $88.08 per barrel, retracing some gains made earlier in the week. It’s noteworthy that financials and energy together make up nearly 50% of the TSX’s weighting. Simultaneously, Canada’s primary banking regulator has issued directives for lenders to increase their capital reserves against mortgages with extended repayment terms resulting from the rapid pace of interest rate hikes aimed at mitigating potential risks within the system.

TSX – Weekly Chart

The price of copper continues its downward slide, bleeding below the lower trendline and the tight apex of its pattern.

Copper – Weekly Chart

Silver is maintaining its consolidation phase near the apex of the triangle pattern we’ve been closely monitoring. It’s important to note that silver often exhibits correlations with the price of gold, making it a key focus in the current context.

Silver – Weekly Chart

The uranium theme had a strong week in alignment with our daily setups, with price action surging primarily from bull flag patterns evident on most charts. This rebound originated from the 50-day moving average on the charts we track and was accompanied by an increase in buying volume, as clearly illustrated in the chart below. To stay updated, keep an eye on the daily setups and monitor these bull flag patterns, which may signal further potential upside momentum.

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.

Upon reflecting on the previous week’s performance, a recurring theme emerges as materials and energy managed to eke out slight gains amidst prevailing challenges. Within this challenging landscape, few areas exhibit promise and warrant close scrutiny, including uranium, energy, Bitcoin, and gold. While gold has displayed an impressive upward trajectory, the same cannot be said for the performance of gold miners.

What Worked Last Week

Furthermore, the recent days may have set the stage for a potential year-end rally, with a shakeout possibly occurring after breaching recent lows. However, it’s important to note that this might not be a shakeout at all but rather the beginning of something more significant. This environment prompts investors to consider maintaining a significant portion of their investments in cash while remaining actively engaged. Even robust setups faced substantial pressure, and market breadth remains lackluster, with decliners outnumbering advancers and new lows surpassing new highs by a margin exceeding 2-to-1 on both the New York Stock Exchange and the Nasdaq.

Market Breadth

I conducted a comprehensive review of my scans in search of potential new companies that fundamentally align with the criteria for inclusion in our stock universe, which we closely monitor. Regrettably, the results were quite meager, to the extent that there seems to be no compelling reason to update our sector watchlist. No new additions have surfaced, and several potential removals as price action on those charts struggle to maintain levels above their moving averages. I intend to allow another week for the dust to settle before considering any updates.

As Greg mentioned at the beginning of the report, we find ourselves at a clearly defined inflection point. Any downward move could potentially trigger a waterfall-type event in the indexes. Furthermore, uncertainty looms regarding the bond market as it teeters on the brink of either breaking or potentially causing disruptions in the economy. The array of looming geopolitical risks and the upcoming week of earnings reports add complexity to the situation.

If I were to present some setups I’m actively monitoring, I would primarily be reposting the charts I shared on Thursday and throughout the week in the daily setups reports. However, it’s important to note that there’s one chart I didn’t post earlier, which is MSTR. This specific setup is worth keeping an eye on, particularly if the price of Bitcoin can break out higher from its basing pattern.

MSTR – MicroStrategy Inc.

MicroStrategy is set up in the form of a continuation wedge. Take note of the bullish volume profile and the large volume by price bar on the chart’s left side. Watch for the potential of upside momentum.


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 as we wait for the dust to settle. Until next time, happy trading, and don’t forget to set your stop!

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 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 for further analysis and tracking or copy and paste the ticker list into your chart provider.


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