Hey everyone, welcome back to another Sunday Scan. We have Ariel on as a guest this week to talk about all the wild moves in the markets and the themes that may be in play. We will discuss a lot in the video, so make sure you check it out!
It’s also a short week with the market closed on Christmas so keep in mind that volume and activity may happen in bursts vs evenly distributed day by day.
Video Scan and Game Plan
Main Watches
Retail-focused stocks URBN ANF VSCO are showing relative strength and are building well, especially given the weakness in a lot of the other nontech S&P sectors. Possible continuation higher and will likely lead if the market perks back up.
Chip / Semi focused stocks ALAB AVGO look better than the rest of the names in the sector and likely have continued institutional demand which helps them hold well even during market volatility. On watch for continuation higher.
NVDA will be interesting to see if it can get some momentum back but it looks like it’s consolidating for the most part. On watch for the next leg of the move and direction / trend formation.
Nuclear stocks OKLO NNE have been consolidating as some of the money that was in these stocks likely flowed to some of the quantum names. If flows come back in they are sitting near key bases so could have a level to risk of off for continuation if they hold up.
Quantum stocks that had capitulation moves QUBT QBTS may have peaked in the sector and look weaker than some of the other names given the recent blow-off moves and slam downs. The sector is separating the more legit ones from the crappy ones so these fall into the lower quality pile for possible downside especially if momentum slows in the sector.
IONQ leader in the quantum sector and some volatility products are being built around it like TSLA and MSTR have. That’s usually a sign that Wall Street sees continued volume and activity in the space that they can clip fees from. On watch for possible continuation higher until the next blow-off move or FFT.
SOUN keeps holding trend and the option flow continues to be call-heavy. Looking for a real blow-off day or negative news for an unwind.
AI sorta like a weaker version of SOUN and is near some key levels that could be used to risk against for a move lower especially if the market gets weak.
IWM / TNX if bond yields drop sharply then IWM likely has a large bounce in its future but I need to see that correlation for confidence otherwise IWM is just weak-looking.
TSLA had its near-term blow-off move and mean reversion into mopex on Friday. Same setup as SMCI, NVDA and MSTR on their own option-driven parabolic runs and mean reversions. Needs to consolidate a bit and then maybe next leg up but I could see it test 400 first if the market is weak.
PLTR looking for parabolic into year-end and then maybe some heavy profit taking into the New Year as flows and rotations take place which could make for a good unwind.
CVNA testing key area. Looks pretty weak and there is a chance that some rotation out of the name could get it below 200 soon.
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