The Monday Morning Playbook: Week of August 25, 2025

Good morning,

Last Monday, I featured “3 charts that show why this market could have huge upside,” and after last Friday, it’s safe to say we’re off to a good start.

But that’s not just a tongue-in-cheek victory lap.

It’s important because “start” is exactly how investors should be thinking about the next big move.

Two of those charts, the Dow and the Russell 2000, were inverse head and shoulders patterns, and the breakouts are inherently the beginning of the pattern.

And the third chart (the week prior’s improvement in breadth) has only gotten more bullish. Not only does the broad-based nature of Friday’s move provide confirmation of the breakout, but the cluster of “buy everything” days is the type of thing we see at the beginning of big moves, not the end.

Sure, September seasonality could still cause some choppiness. But price is our top input and last week’s action is further evidence that the number one bet investors should be making in portfolios is overweight (or at least fully allocated to) equities.

This week’s report will review:

• The three bullish charts revisited

• Continued rotation into cyclicals and laggards

• Major indexes and foreign stock ETFs

• Nvidia technicals ahead of earnings

• and more!