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-Ryan Fitzwater, Publisher

Alright gang — let me set the stage for you.

Last Thursday gave us a nasty reversal. QQQ gapped into new highs, and then gave it all back. If you haven’t seen that daily candle, go take a look — classic blow-off top price action.

Then on Friday?

We get President Trump back in the headlines, accusing China of violating trade agreements. Tariff tensions back on the table. Volatility ticking up. Honestly… this market feels like it’s on the edge of something.

That’s why I’m not forcing anything right now.

I sized down on QUBT.

I picked up some SPY puts into the weekend.

But overall? I’m keeping it light. It’s my wife’s birthday, and more importantly — I know from experience that my worst trading comes after a hot streak.

So I’m stepping back. Letting things breathe. And coming into this week with a fresh set of eyes.

And what’s sitting right at the top of my watchlist?

Costco (COST) — quietly setting up one of the strongest TPS patterns I’ve seen in some time.

While the Market Chopped, COST Just Kept Climbing

Let’s talk relative strength.

While the indexes have been flat this year, COST is up +13% YTD. It broke out after earnings, held the move, and started consolidating right under all-time highs.

No drama. No breakdown. Just quiet strength.

That’s exactly what I want to see in this kind of environment — a stock that’s ignoring the noise and doing its own thing.

Why This Setup Is So Clean

Here’s the breakdown:

✅ Earnings winner — solid beat, high membership retention, e-com growth

✅ Daily squeeze just starting to fire

✅ Stacked EMAs on the daily and weekly — 8 > 21 > 34 > 55

✅ Clear uptrend off the May low

✅ Relative strength against a weak tape

That’s a full-blown TPS setup: Trend, Pattern, and Squeeze — all working together.

And not just on one timeframe. The EMAs are stacked on the daily and weekly, which tells me this trend has real legs.

What the Squeeze Is Telling Us

Let me walk you through this.

When you’ve got a squeeze, it means price is coiling — volatility is getting compressed as Bollinger Bands tuck inside the Keltner Channels.

Think of it like a spring getting wound tighter and tighter. Eventually? That energy has to be released.

Now add in stacked EMAs — which act like a ladder for price to climb — and you’ve got a setup that’s built for follow-through.

That’s what we’re seeing on Costco right now. A daily squeeze firing, climbing stacked EMAs, with a fresh earnings catalyst still in play.

You don’t need to overthink this. It’s doing everything a strong stock should do.

Why I’m Not Chasing Junk Right Now

Look — I’ve been doing this long enough to know the warning signs.

This past week started off great. Tuesday was solid. But by Thursday and Friday? It got ugly. And I’ll be honest — I gave back about 20% of the gains I’ve built over the last two months.

That’s not great… but I know what’s worse: chasing losses.

So I made the call Friday morning to stop digging. I took down size. I picked up some downside protection in SPY puts.

And then I stepped away.

Because here’s the truth: IT. CAN. ALWAYS. GET. WORSE.

That’s not pessimism — that’s discipline.

And if you’re in the same boat? Please hear me on this. I’ve given back way too much money in my career trying to trade my way out of a hole.

What I’m doing instead is coming into today’s session with a clean slate — and a short list of high-quality setups.

And COST is at the top of that list.

Your Action Plan

If you’re looking for something clean, controlled, and structured in a messy market — Costco fits the bill.

These are the kinds of setups I wait for.

And if you want to learn how I specifically trade earnings winners like COST, then you’ve got to check out my Opening Bell Aftershocks strategy.

I’ve actually nailed triple-digit winners in a matter of minutes utilizing this strategy.

👉 Click here to discover how it works

Let’s have a strong week — and remember:

Don’t dig. Stay ready. The clean setups will come.

— Nate Bear