Weekend Report – July 6, 2020

MY JOURNAL FOR MONDAY MORNING – July 6, 2020

NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS

The Private Investor Newsletter – GregSchnell.com 📰

Hello everyone, I have moved my daily blog over to GregSchnell.com. Please check us out where you will receive access upon subscription to one strong, concise email per week. The email will contain:

  1. PDF file that will have my top ten charts of the week. This is to summarize all of the work I go through every week and give you the best information on market direction. This will also include my preferred opinion on the market: very aggressive, moderately aggressive, selective, defensive, very defensive. We want to be aggressive coming out of major lows. Theses runs can last a few weeks to months and perhaps more than a year. I will be investing in the same tone I am recommending.

  2. The weekly video which summarizes the major moves in the USA, Canada, rest of world, commodities, bonds and currencies including:

    • Commodities: Copper, steel, rare earth metals, lithium, gold, silver, oil, and natural gas, marijuana.

    • Bonds: 3 month, 2 year, 5 year, 10 year, 30 year.

    • Equities: A large part of my work makes sure that you’ll be in tune with the major moves in the indexes.The protection of capital to miss the big downside moves as well as the aggressive entries near the lows to maximize profits in the moves and keeping it as profit in your portfolio.

    • Currencies: a comprehensive look at the major currency pairs every week. These pairs can drive some of the major changes in world economics. Being aware of these changes when they occur can help you position for new strategies and selections as the changes happen.

    • Global markets are important to support major uptrends in the North American markets. A summary of this information enables you to be aware of country ETF’s that are doing well to help you diversify your portfolio across global markets.

  3. A vital chartlist that you can quickly look through with my top 30 charts at any given time. These charts will change as the market changes and will allow you to see the current status of charts I posted in the newsletter.

  4. Once a month conference call – This will be recorded and saved if you can not attend live but are still interested.

  5. Dwight Galusha also posts daily setups that are appearing on his radar. Here is an example of his chart showing the setup, and the resulting follow through:

Follow-up Chart (8-days later)

Award Winning Technical Analysis | Greg Schnell.com | Avoid the downside and learn to keep more of your profits. – LEARN MORE

Tradable Lows in the Canadian Technology Sector  📝

Understanding market technicals becomes a very important tool when emotion takes over and price swings don’t make sense. This is especially true during times of uncertainty and periods of market volatility like we’re experiencing now. Many people consider technical analysis voodoo and refer to it as people drawing lines on a stock chart. Although the drawing lines part might be true, technical analysis is about documenting investors psychology. Resistance and support levels, trendlines, market breadth and the VIX (market volatility index) are all created by fear and greed (people’s emotions). My job as a chartist is to document that fear and greed.

What most people don’t understand is that the stock market will bottom before the bearish news flow hits its peak. If anyone has tuned into the news, they’d think the sky was falling. I have also noticed through my interactions that investor psychology has flipped and in my “opinion” it is wrong. Many people were wrongly trying to buy every dip on the way down (wrongly attempting to guess a bottom). This pattern has lead to investors becoming too scared to look for buyable dips and are now resorting to selling at any chance they get.

I like to use the S&P500 as my trend indicator and the VIX as my fear gauge. As the old saying goes, “a rising tide will float all boats”. When the S&P500 moves higher it forces money into most equities and causes the VIX index to collapse. – READ MORE

Dwight Galusha, CMT, is a contributor of 5i Research is a conflict-free investment research provider for retail investors offering research reports, model portfolios and investor Q&A, which is available to try for free (Click Here).

Gold Miners Get Set To Surge | Greg Schnell, CMT | Market Buzz (07.01.20) – GregSchnell.com 📺

The gold miners have started to rotate higher and look very solid as they continue to move up.Greg rolls through lots of the charts to demonstrate how nice the long term shape of the group looks.

Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies

View from the Chat Room 💻

Join the Chat by Clicking Here

BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS 📈

Consumer Staples

Alimentation Couche-Tard (TSX:ATD.B) – Daily Chart

Couche-Tard is building a continuation triangle near all-time highs while the PPO momentum indicator attempts to curl higher. Watch for a breakout from this technical pattern as it would suggest a continuation of the prevailing uptrend. This price action and technical setup is very bullish. I know I sound like a broken record but I’ll say it again, “Buying stocks that are breaking out from a big base to a new high is a strategy that can not only be very powerful, but very profitable. Being able to identify this type of breakout not only allows investors to take a position in stocks during the early stages of an uptrend (often the starting point of a major price move), but also allows investors to take advantage of an asymmetrical equation that often translates into an acceleration in upside price momentum as there’s no resistance (overhead supply) from people selling at a loss (everyone in the stock is now a holding a winning position)”.

 

North West Company (TSX:NWC) -Daily Chart

North West Company has started to push higher from a bull flag continuation pattern and is threatening to make a new all-time high. Watch for continued upside price momentum.

Empire Company (TSX:EMP.A) – Weekly Chart

After building a bull flag continuation pattern over the last 3 weeks, Empire Company is now pushing up against the underside of a major horizontal resistance line while the weekly PPO momentum indicator attempts to give a bullish sign (a move above the zero line). This technical setup is very bullish and suggests a major breakout could be near.

Canadian Banks

All the Canadian Banks appear to be trying to put in a tradeable low. Price action on most of our banks are setup very similar to the three charts below. When zoomed in, price action has either broken out from a little falling wedge continuation pattern or is setting up near the apex. Watch for continued upside price momentum as a suggested stop-loss order could be place right below the most recent price label appearing on the chart.

The Bank of Nova Scotia (TSX:BNS) – 2 hour Chart

 

Bank of Montreal (TSX:BMO) – 2 hour Chart

 

Canadian Imperial Bank Of Commerce (TSX:CM) – 2hr Chart

Technology Sector

AcuityAds Holdings (TSX:AT) – Daily Chart

AcuityAds is setup near the apex of a bull flag continuation pattern and is pushing up against the underside of a major horizontal resistance line while the PPO momentum indicator attempts to curl higher. Watch for the breakout.

 

TECSYS (TSX:TCS) – Daily Chart

TECSYS is breaking out after successfully retesting the May breakout in the form of a falling wedge continuation pattern while the PPO momentum indicator bounced off the zero line.

 

Open Text (TSX:OTEX) – 2hr Chart

Open Text is near the apex of a continuation triangle while the 2hr PPO momentum indicator attempts to curl higher off the zero line.

 

Converge Technology Solutions (TSXV:CTS) – Weekly Chart

Converge Technology is threatening to breakout from the apex of a multi-month continuation pattern which is located just below a new all-time high. Watch for a breakout as it would suggest more upside momentum to follow.

Metals and Mining

Endeavour Mining (TSX:EDV) – Weekly Chart

Endeavour Mining has started to breakout from a giant base to an 11+ year high while the Monthly PPO momentum indicator begins to accelerate higher off the zero line. On this weekly chart price action is attempting to breakout from a bull flag continuation pattern will the PPO momentum indicator accelerates higher.

 

Osisko Gold Royalties (TSX:OR) – Daily Chart

Osisko Gold Royalties has started to push higher from a flagging pattern and is threatening to breakout above a major horizontal resistance line. Watch for a price move above the 13.80 price label as it would suggest more upside price momentum to follow.

 

K92 Mining (TSXV:KNT) – Daily Chart

K92 Mining is pushing up against the underside of a major trendline and is threatening to breakout from a 5-month continuation pattern while the PPO momentum indicator bounces off the zero line. Keep this chart on close watch as a breakout from this technical pattern would suggest more upside price momentum to follow.

Telecom Sector

All the Canadian Telecom charts appear to be trying to put in a tradeable low. Price action on all of the charts are setup very similar to the three charts below. When zoomed in, price action is setting up in a type of continuation pattern. Watch for a price move above the horizontal (dashed line) resistance line drawn on the chart with the arrow. A breakout would suggest more upside price momentum to follow.

BCE (TSX:BCE) – 2hr Chart

 

TELUS (TSX:T) – 2hr Chart

 

Rogers Communications (TSX:RCI.B) – Daily Chart

Utilities

Northland Power (TSX:NPI) – Daily Chart

Northland Power ended Friday with a new closing 52-week high (and a new closing all-time high). Watch for continued upside momentum.

 

Boralex (TSX:BLX) – Daily Chart

Boralex is threatening to breakout to a new all-time high while the PPO momentum indicator accelerates higher.

 

Brookfield Renewable Energy Partners (TSX:BEP.UN) – Daily Chart

Brookfield Renewable Energy is setting up to potentially breakout from a multi-month continuation pattern and above a major horizontal resistance line while the PPO momentum indicator bounces off the zero line.

Canadian Energy

Over the weekend at GregSchnell.com I featured a Canadian Energy focused daily setup report where I featured CNQ, CPG, MEG, OVV, and TCW. To access this article please subscribe here: – GregSchnell.com

Many charts from the Canadian energy sector that are all setup near the apex of a bull flag continuation pattern. Here is a link to a great StockCharts article for those not familiar with the bull flag setup: https://school.stockcharts.com/doku.php?id=chart_analysis:chart_patterns:flag_pennant_continuation.

 

Trican Well Service (TSX:TCW) – Daily Chart

Trican Well Service is setup near the apex of a bull flag continuation pattern and is pushing up against the underside of a major horizontal resistance line while the PPO momentum indicator attempts to curl higher. Watch for the breakout.

 

TORC Oil & Gas (TSX:TOG) – Daily Chart

TORC Oil & Gas is setup near the apex of a bull flag continuation pattern while the PPO momentum indicator attempts to curl higher.

 

Tamarack Valley Energy (TSX:TVE) – Daily Chart

Tamarack Valley Energy is coiled between the upper trendline of a bull flag and a major horizontal resistance line while the PPO momentum indicator begins to curl higher. Watch for the breakout.

Other Setups To Watch

Restaurant Brands (TSX:QSR) – Daily Chart

Restaurant Brands is setup near the apex of a bull flag (small falling wedge) type continuation pattern and is pushing up against the underside of a major horizontal resistance line while the PPO momentum indicator attempts to curl higher. Watch for the breakout.

 

Park Lawn (TSX:PLC) – Daily Chart

Park Lawn is trying to bounce off the bottom of a continuation triangle pattern while the PPO momentum indicator approaches the zero line. Watch for upside momentum.

 

Cameco (TSX:CCO) – Daily Chart

Cameco is attempting to push higher form a falling wedge continuation pattern and above a major horizontal resistance line highlighted by the volume by price bar on the left side of the chart while the PPO momentum indicator begins to curl higher.

MOMENTUM ALERT SIGNALS 📡

Have a great day! 🙂

PLEASE FEEL FREE TO SUBSCRIBE BELOW TO RECEIVE FUTURE UPDATES FROM SETYOURSTOP.COM

SetYourStop png green

FULL DISCLOSURE: NOTHING ON THIS SITE SHOULD EVER BE CONSIDERED TO BE ADVICE, RESEARCH OR AN INVITATION TO BUY OR SELL ANY SECURITIES, PLEASE SEE MY TERMS & CONDITIONS PAGE FOR A FULL DISCLAIMER.

If you’re not currently a member of 5i Research, join the free trial and receive immediate FULL access – Free One-Month Trial