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Hello Traders,

Apologies for not putting out a watchlist last week. I was traveling and wasn’t able to put out a report, but we are back at it!

Not a terrible week for the markets. Another consolidation week. And honestly, this is needed in my opinion. We have had a sharp move off the lows following the tariff news, and there are a lot of extremely extended charts out there. A pull-back or consolidation is healthy, and helps setup new charts. This V-shaped recovery has frankly made it challenging (for me at least) to get involved in stocks. Many stocks have blasted higher, without pause, and continued rallying for weeks. Ideally I would like to place my buys within consolidations following rallies. But I haven’t seen as much of that as I would like to see. So for my strategy and approach I have definitely missed a lot of runners, but that is the name of the game. The markets are taking a bit of a pause and I’m happy to see it.

The S&P500 pulled right back to the 200-day moving average and rallied. The Nasdaq is still trading well above its 200-day moving average. I’m not suggesting we need to pull-back to this level, the market could continue to consolidate sideways, while the 200-day catches up, which would be a great outcome and likely help setup a lot of charts over the coming weeks. I don’t have a crystal ball, so like everyone else, we need to monitor price action daily and let it develop and trade whats in front of us.

With that, I am still comfortable taking new trades, but continue to manage risk as the number one priority. If we start to resolve higher, then I think it’s worth being more aggressive as a test of all-time-highs could quickly follow.

TICKERS

TEL, MTG, PLTR, EPRT, AIZ, PAYC, AIG, TYL, ACGL, WMB, BBUC, DTE, CCK, NTB, SLV

Let’s get into this weeks charts!

TEL - TE Connectivity: After sharp pull-back, this one recovered immediately and managed to push right through this slanted resistance zone. We are now consolidating for a couple weeks above that resistance level. I want to see price hold over the line, and will be looking for a continuation to the upside.

MTG - MGIC Investment Corp: Repeat name here. Nice base, with a really tight consolidation happening right at resistance. Looking for this to give a stronger push over that resistance zone, and continue to the upside.

PLTR - Palantir: This is the daily chart on Palantir. We have that nice big base, which price broke through that upper resistance zone. It gave a nice consolidation after pushing through resistance and is pulling right back into that resistance level which has acted as support, which also lines up with the 20-day moving average, and got a nice bounce. Looking for this one to continue this upside momentum.

EPRT - Essential Properties Realty Trust: Repeat name. This one is looking close to a breakout. Nice volume coming in last week. Price continues to form this consolidation handle on this multi-year cup & handle pattern. On watch for the breakout.

AIZ - Assurant Inc: I shared this chart with readers back in July as this was starting to rise out of that consolidation handle. It’s went on to give a great breakout move, and has displayed very constructive price action. We are not pulling back in a pretty orderly fashion for several months, and have completely retested the breakout level which is acting as support. Volume is stepping in again, so I am watching for this one to push over the slanted blue line and look to put in a continuation to the upside.

PAYC - Paycom Software: Daily chart here. We have this nice base pattern, which price broke out of with strong momentum. We are now tightly consolidating, as the rising 20-day moving average is catching up. I would like to see this rising 20-day act as a level to trade around. If we start to see price push high through this consolidation I will be looking to participate in the continuation higher.

AIG - American International: Pretty sure I shared this chart a couple weeks back. We still find ourselves in this consolidation above resistance. Price put a new weekly closing high last week, so it’s starting to look like this may want to continue higher. Chart is actionable right where it sits in my opinion.

TYL - Tyler Technologies: Another repeat name. We continue to consolidate above this support level. Price broke below support, but recovered and is now consolidating. Constructive price action here. I will be watching for this to start pushing up into the right.

ACGL - Arch Capital Group: I’m anticipating this to turn into a big base. Still waiting for price to push through that lower black line. Once I see that price confirmation, I will likely be taking a position in this name.

WMB - Williams Companies: Multi-month base prior to a strong trending move. This is constructive price action. I’m watching this one for the next push and continuation to the upside. Pretty straight forward setup.

BBUC - Brookfield Corp: Nice big multi-year bottoming base. Price has respected that black resistance line for years and has recently broke out of that level. We now are retesting that resistance line which looks to be acting as support. Straight forward setup, we want price to hold above the line. As long as we can stay above support I like it.

DTE - DTE Energy Company: Multi-year base. Price continues to consolidate under resistance. On watch for the breakout over the line. Keep it simple.

CCK - Crown Holdings: Multi-year bottoming base breakout. We broke through resistance, and are now retesting/consolidating right above resistance which is acting as support. As long as we hold above the line, I like this setup.

NTB - Bank of N.T. Butterfield & Son: Repeat name. Shared this multi-year base breakout several times over the weeks. We are holding nicely above resistance and consolidating. I am anticipating follow through to the upside.

SLV - iShares Silver Trust: I still got my eye on Silver. We saw that sharp drop with the overall market after all the tariff talks, quickly recovered, and have been in consolidation mode ever since. I’ve overlaid the 20-day moving average as price seems to be trading around this level for the past several weeks. It looks like it’s beginning to curl up, so I’ll be watching for a continuation higher from here.

Thanks for tuning in everybody. Hope you all have a good week!

Together We Trade