Weekly Pending Setups Report | New Setup VTV

We have one new setup this week, while NVDA turned active.

New Setups

• VTV

Asset Classes

Equities

• Nvidia Corp (NVDA): Pending>Active (turned active October 30)

Equity ETFs

• Vanguard Value ETF (VTV): New Setup
• iShares Russell 2000 ETF (IWM): Pending>Monitoring (Divergence has been burned through as both price and RSI made a lower low).
• SPDR S&P 500 Industrials ETF (XLI): Pending
• SPDR S&P Regional Banking ETF (KRE): Pending>Monitoring (Divergence has been burned through as both price and RSI made a lower low).
• iShares MSCI Brazil ETF (EWZ): Pending

Fixed Income ETFs

• iShares 20+Year Treasury Bond ETF (TLT): Pending

Equity ETFs

New Setup: Long: Vanguard Value ETF (VTV)

-Bullish divergence setup with price making lower low and RSI higher low in late October compared to the beginning of October.

-A break above the downward trendline starting in September would activate the buy signal.

-Target 1 and 3 are at key resistance levels, while target 2 would see price rally back to the 200 and 50-DMAs.

-Macro Catalyst: A recovery in some of the more economically sensitive sectors like Energy and Financials due to accelerating economic data would see VTV rally.

-A potential stop loss is placed at the March 2023 lows.

Long SPDR S&P 500 Industrials ETF (XLI)

-Bullish divergence setup with price making lower low and RSI higher low in late-October compared to beginning of October.

-A break above the downtrend line from the end of August would activate the buy signal.

-Target 1 aligns with horizontal resistance, target 2 with the 50-DMA, and target 3 with horizontal resistance.

-Macro Catalyst: A reversal lower in the dollar would help industrial stocks given their larger revenue generation abroad.

-A potential stop loss is placed near the May and June lows.

Long: iShares MSCI Brazil ETF (EWZ)

-EWZ has been consolidating since it broke its 2023 uptrend. It recently printed a bullish divergence, potentially suggesting that the consolidation is losing steam and the uptrend is poised to pick back up.

-A break above the downwards trendline capturing the two recent peaks would confirm that the price consolidation is done and set the ETF up for more upside, triggering the trade.

-Macro Catalyst: a weakening of the dollar reflecting easing concerns around the global economy would propel Brazilian stocks higher given their exposure to China and the commodity cycle.

-A potential stop loss could be placed around the $30.75 mark. Price revisiting this level after a break above the trendline would likely negate any bullish development.

Fixed Income ETFs

Long: iShares 20+ Year Treasury Bond ETF (TLT)

-Price is trending within a tight downwards channel. It has recently hit a deeply oversold reading.

-Short-term bullish divergence has formed with the RSI indicating that the downwards momentum is fading.

-A break above the price channel could trigger the trade and a potential meaningful reversal of TLT back to key levels of resistance above.

-Macro Catalyst: Weakening of U.S. economic data or an acceleration in geopolitical concerns would see investors seek out safe haven assets like Treasuries.

-A stop loss placed under $85 would ensure that the trade is stopped out and limit losses in the event that a breakout above the short-term price channel fails to hold.