Mercury General Corp

MCY remains in a Stage 2 corrective reset within its broader uptrend. Price recently failed at the 9/21 EMA zone on heavy volume and pulled back into the rising 50-day SMA. Medium-term bias is bullish, supported by Stage 2 structure and higher lows above the 50 DMA, but short-term conditions are unfavorable with price below flattening EMAs. Execution is deferred: stalking for a constructive pullback into major support zones (50 DMA and 9/21 EMA) before committing.

• ↑Q4 after-tax operating income $154M and full-year record $398M underscore strong earnings yield.
• ↑Combined ratio improved to 91.4% in Q4 from 96% FY, reflecting effective cost control and strong profitability.
• ↓Estimated $1.6–$2B gross wildfire losses could strain earnings and capital.