BK has unpriced earnings momentum from tokenization custody opportunities, conditional on the Clarity Act passing.

Your next pick is Bank of New York Melon. I was talking to Alex Coffee at the top of the show about some of the commentary coming out of this Barlay's conference. They were there, their CFO saying that their turnaround plan uh has entered a period of accelerated growth.

He says their turnaround is what he says complete. Does that come into play at all with them making the big three today?

Uh, it's certainly a component of it, but the reason why I bring them up is again the clarity act. I'm looking at this transformation that we have of securities into tokenization and stable coins and this digital infrastructure and who's going to be behind that.

So, Circle is one beneficiary. Bank of New York Melon is from a custodian perspective and with the digitization of assets, it's another catalyst that could potentially push them forward.

Some numbers they service around 59.4 trillion in custody of administrative assets and their Q1 revenue grew 13% to about 5.41 billion EPS increased to 42% to 2.25. So the growth spanned security services and market and wealth services but their margin expansion because there was higher revenue growth that exceeded their expenses and that's something I want to see when I'm looking at a company fundamentally.

But the thesis behind this is that they have additional earnings momentum that isn't priced in due to the custodian opportunities with this tokenization of assets. But that hangs on the Clarity Act.

So that's extremely important. If that goes through, then this is a longerterm follow-through that we could see come into revenue. But just watch the Clarity Act for the first two picks here.

All right. And we are looking at we look at the chart here for Bank of New York Melon. It's outperforming uh the broader market here, Rick. We can see we've had a we've got you've converging lines here, but now we have a downward one.

So, walk us through the technical setup here in the near term.

Yes, quite a nice move here for this maybe kind of a sleeper hit type of the stock from the financial world here, but uh the more recent trajectory was this rising wedge type shape.

We have our conventional trend line going upward across these lows. Things started to get a little messy in this area, but it was accompanied by another line going across the highs that was a much more shallow slope.

So typically regarded as a bearish type of setup. Certainly never a guarantee with any of these types of price patterns here. But in this case, it did indeed play out to the downside here.

So we broke below those relative lows 157. Now we are approaching another set of relative lows here near 152. Uh beyond that 148 possibly stands out. Uh old highs and then roughly subsequent lows there.

So if we were to move higher on the other hand, if we were to break back above 157 and break this very shortterm downward sloping uh trajectory line here, we could see a uh 165 presenting potential resistance as it was a repeated ceiling here.

But so pretty interesting. The kind of the the overall take though is that we've had a a strong rally. Now, we're having a a rather sharp pullback here, but we're approaching what looks like it could be a notable supportive level in that it was our lows after we had our earnings event here uh in uh uh July on July 15th.

So, uh pretty interesting position to be in right now as we approach that 152 level.

We are breaking below our moving averages though. We have broken through our three shorter term moving averages, 5day and 21day yesterday and then today on pace to uh push below our 63-day EMA. that comes in near 15547.

RSI remaining above the 30 level. That would signify the oversold area. So be on the lookout if we start to move back into that area for signs of further potential weakness here.

Now our volume profile shows that we have a node here between about 157 to 164. Another uh heavier trading activity here lines up with this uh rangebound area here from 143 to 146. a much uh smaller node here near 150 as well.

All right. And right now we are at 15363 down about two and a half percent on the session for Bank of New York Melon.