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Macro Review

The week kicks off amidst significant market movements shaped by geopolitical and policy developments. Notably, gold (GLD) rebounded after escalation in the Russia-Ukraine conflict over the weekend, surging 1.6% pre-market. While the technical setup for gold had been compelling on Friday, the absence of an immediate catalyst held back action until now. Traders eyeing gold are reminded of its long-term uptrend supported by strong weekly technicals.

For a more detailed macro overview, check out our pre-market video breakdown, where we discuss these market dynamics and trading setups in depth.

The broader market indices—QQQ, SPY, and IWM—saw continued declines, exacerbated by political appointments signaling potential cuts in federal spending and regulatory clampdowns. Big Pharma, as reflected in XBI, has been hit particularly hard, alongside ultra-processed food companies like PEP and CELH, as markets adjust to the potential policy impact.

Meanwhile, Tesla's (TSLA) resilience underscores its central role in investor sentiment, bolstered by recent developments in full self-driving (FSD) technology and positive optics surrounding Elon Musk's alignment with political leadership. Institutional interest in Tesla remains strong as global funds seek exposure to this key player in both the automotive and tech sectors.

Top Picks of the Day

RCAT

📊 Type: Swing
🎯 Target: $7.75

• ⚡ Catalysts: Anticipated game-changing PR this week. Event anticipation runs have historically driven strong moves in RCAT ahead of significant announcements.
• ❤️ Sentiment: Market buzz continues to build, with retail and institutional investors aligning on a positive outlook for the upcoming news.
• 📈 Fundamentals: The company's innovative tech and expanding market footprint suggest upside potential beyond current valuations.
• 📊 Technicals: Friday's 8.5% gain positions RCAT for a potential breakout, with early pre-market activity supporting the move.

💡 Actionable Insight: RCAT leads the top picks list for its high probability of delivering strong percentage returns today.

DELL

📊 Type: Day Trade/Swing
🎯 Target: $137-$141

• ⚡ Catalysts: New product shipments, competitive edge in AI servers, and market share gains from SMCI are driving bullish sentiment.
• ❤️ Sentiment: Positive buzz amplified by NVIDIA’s (NVDA) upcoming earnings, drawing attention to related plays like DELL.
• 📈 Fundamentals: Strong valuation metrics with a favorable price-to-earnings ratio. Dell’s business realignment positions it well for sustained growth.
• 📊 Technicals: Breaking key resistance at $134 pre-market. Next levels to watch are $137 and $141.

💡 Actionable Insight: Consider call options if the stock sustains its momentum at the open.

TSLA

📊 Type: Swing
🎯 Target: $415

• ⚡ Catalysts: Government policy accelerating FSD adoption and institutional buying as Tesla cements its role as a global market leader.
• ❤️ Sentiment: Visibility of Elon Musk in key political and social events amplifies brand and investor confidence.
• 📈 Fundamentals: Despite short-term fluctuations, Tesla’s long-term growth trajectory remains intact with robust demand for its vehicles and technologies.
• 📊 Technicals: Current support at $335-$340. Resistance levels are $360, $385, and $415, with strong buying interest expected on dips.

💡 Actionable Insight: Expect volatility but maintain confidence in its upward trajectory.

GEO

📊 Type: Swing
🎯 Target: $31+

• ⚡ Catalysts: The nomination of supportive policymakers and historical patterns of gains in the private prison sector post-elections.
• ❤️ Sentiment: Positive divergence from competitors (CXW) strengthens investor conviction.
• 📈 Fundamentals: Positioned for growth with strong cash flows and a history of benefiting from policy shifts.
• 📊 Technicals: A breakout above $31.03 signals further upside potential.

💡 Actionable Insight: A consistent top performer in the community, GEO remains a reliable pick.

ROOT

📊 Type: Swing
🎯 Target: $100+

• ⚡ Catalysts: Strong breakout on Friday and robust underlying fundamentals driving investor interest.
• ❤️ Sentiment: Market participants are increasingly bullish as ROOT gains traction.
• 📈 Fundamentals: Innovative offerings in the insurtech space position ROOT as a disruptive player.
• 📊 Technicals: Breaking $100 will likely trigger a new wave of institutional buying.

💡 Actionable Insight: Continue monitoring for strong volume confirmation.

Secondary Picks

• OKLO: Potential bounce as the CEO joins the energy secretary position.
• EBS: Small position on news of a monkeypox outbreak, signaling possible short-term gains.
• NTLA: Biotech with strong cash reserves and positive Phase 1 data.

Conclusion

Today’s lineup offers a diverse mix of opportunities, from high-growth tech plays to event-driven small caps. RCAT leads with its potential for explosive percentage gains, while DELL and TSLA provide steadier setups with strong catalysts. GEO and ROOT round out the list with solid fundamental and technical setups.

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