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Macro Review: Market Volatility in Focus 

Yesterday's market movement aligned perfectly with expectations, as the Federal Open Market Committee (FOMC) meeting drove significant volatility. Key takeaways from Chairman Powell’s press conference included fewer anticipated rate cuts in 2024. This sparked a sharp decline in risk assets, confirming our pre-market sentiment: “The easy money train is over.” Watch the morning show here.

Hedging strategies proved invaluable, particularly using UVXY calls, which delivered substantial returns. 

Looking ahead, big-cap stocks appear more resilient than small caps or microcaps. With the January Effect approaching, the strategy remains to accumulate fundamentally sound tax-loss losers starting Monday.

Let’s delve into the top picks for today, analyzed through StoryTrading’s 4 Pillars framework: ⚡️Catalysts, ❤️Sentiment, 📊Fundamentals, and 📈Technicals.

VKTX (Viking Therapeutics)

⚡️Catalyst: The company’s oral GLP-1 asset, acquired by Merck in China, is creating interest. This, coupled with the market’s sharp decline, led to a gap fill on the VKTX chart.

❤️Sentiment: Market sentiment is cautious but opportunistic. The filling of the gap provides a technical reprieve, enticing traders to bet on a potential rebound.

📊Fundamentals: While preclinical progress limits immediate revenue potential, Viking’s pipeline holds promise in addressing obesity and related conditions—a highly lucrative market.

📈Technicals: With RSI at its lowest and a gap fill at $38.50, VKTX appears poised for a tradable bounce. Targets are set around $40-$42.

HIMS (Hims & Hers Health)

⚡️Catalyst: Recent FDA statements on obesity drug shortages ending caused an overreaction, pushing the stock down sharply.

❤️Sentiment: Despite the pullback, investor confidence in HIMS’ growth story remains strong. The market may soon dismiss this catalyst as noise.

📊Fundamentals: $HIMS has consistently delivered robust revenue growth and margin improvements. Its diversification into telehealth strengthens its long-term outlook.

📈Technicals: The stock is testing critical support levels near the 50-DMA at $25.23. A bounce here could quickly reclaim the $27-$28 range.

OPTX (OptionsPlay)

⚡️Catalyst: The stock recently filled a technical gap at $2.12, creating an opportunity for a quick scalp trade.

❤️Sentiment: As a lesser-followed quantum computing stock, OPTX benefits from being undervalued relative to peers. Market buzz is cautiously optimistic.

📊Fundamentals: With $8M quarterly revenue and a modest $93M market cap, OPTX trades at 3x revenue, making it the least speculative among its peers.

📈Technicals: After filling its gap at $2.12, OPTX has room to climb to $2.34. Strong price action supports potential for a second leg higher.

RR (Railroad Co.)

⚡️Catalyst: This microcap stock showed resilience after breaking above its 200-DMA earlier this week.

❤️Sentiment: Despite broader market volatility, RR’s recent news on showcasing its products at a 2025 industry event has attracted attention.

📊Fundamentals: While revenue remains modest, the company’s strategic positioning in its niche sector bodes well for future growth.

📈Technicals: The stock’s ability to hold its 200-DMA at $3.90 signals strong underlying demand. Scalpers may find opportunities for gains near $4.50.

QUBT (Quantum Computing) – Short Idea

⚡️Catalyst: QUBT’s speculative rise, driven by retail enthusiasm, faces headwinds after an announced offering.

❤️Sentiment: Market sentiment has turned bearish, with investors growing wary of dilution.

📊Fundamentals: High valuation metrics relative to revenue, combined with limited near-term profitability, make $QUBT vulnerable.

📈Technicals: With the stock unable to sustain recent highs, $QUBT presents a compelling short opportunity below $6.

Closing Thoughts

Volatility continues to dominate the markets, creating both risks and opportunities. By leveraging our 4 Pillars framework, we’ve identified actionable plays for both long and short strategies. As always, timing and execution remain critical in navigating these turbulent waters.

If you found this analysis insightful, consider joining our StoryTrading Discord Community for real-time updates, actionable trade ideas, and deep dives into market dynamics. Use code TALKMARKETS for 50% off your first month. Visit linktr.ee/talkmarkets to learn more.

Happy trading!

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