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Macro Review 

The market kicked off with a notable rally, marking the return of what appears to be a "risk-on" environment. With low RSI levels across several indices and a surge in news releases, as executives return from holiday breaks, the tone is decisively bullish. This momentum aligns with significant developments, including the Trump inauguration trade narrative and impactful updates from Consumer Electronics Show (CES), where companies are unveiling pivotal innovations and partnerships. Watch our detailed breakdown here. 

This macro backdrop is underpinned by increased optimism as high-impact news on corporate guidance, partnerships, and shareholder engagements fuel sentiment. Let’s dive into the top stocks that dominated our pre-market analysis, ranked based on their near-term potential and holistic evaluation using the StoryTrading Four Pillars.

Top Picks of the Day

GEO Group, Inc. (GEO) 

• ⚡️Catalyst: The immigration enforcement and Trump-related policy expectations are driving speculative interest in GEO. Additionally, call options activity and significant open interest on the $30 strike suggest a potential gamma squeeze.
• ❤️Sentiment: Bullish momentum is palpable, with traders focusing on breaking through key resistance levels.
• 📊Fundamentals: GEO closed at a new high on Friday, showcasing robust volume and positioning as an attractive speculative play. Valuations remain compelling relative to its peers.
• 📈Technicals: Resistance at $30 remains a focal point for traders. A successful breach could trigger significant upside to the $35-$36 range.

Mobilicom Limited (MOB) 

• ⚡️Catalyst : Ahead of tomorrow’s CEO interview on our show at 10 am EST, Mobilicom is riding strong pre-market momentum. 
• ❤️Sentiment: Endorsed by key analysts and communities, Mobilicom is gaining traction as a sleeper hit in the drone sector.
• 📊Fundamentals: Undervalued relative to its peers, the company’s growth prospects align with previous winners in this space.
• 📈Technicals: Currently testing $4.85 resistance, with a potential move to $7.00 if key levels break on strong volume.

Beyond, Inc. (BYON) 

• ⚡️Catalyst: A shareholder activist letter and a supportive tweet from Marcus Lemonis are reigniting interest in Beyond, coupled with its involvement in blockchain and digital asset initiatives.
• ❤️Sentiment: This stock retains meme-like cult appeal, with catalysts generating renewed enthusiasm.
• 📊Fundamentals: Despite a high short interest, Beyond remains poised for explosive moves. Upcoming levels to watch include the $7.73-$7.90 range.
• 📈Technicals: A breakout above the 50-DMA opens up significant upside potential in the short term.

AST SpaceMobile, Inc. (ASTS) 

• ⚡️Catalyst: Major news regarding a $550 million institutional financing and a spectrum agreement adds to the bullish case.
• ❤️Sentiment: Positive reactions to the financing commitment underpin investor confidence.
• 📊Fundamentals: Trading above all major moving averages, AST is capitalizing on a low RSI, signaling room for further growth.
• 📈Technicals: Testing the $25.00 level, with upside targets at $28.00-$29.00.

Kratos Defense & Security Solutions, Inc. (KTOS)

• ⚡️Catalyst: A newly announced $1.45 billion defense contract over five years highlights Kratos growing influence in the sector.
• ❤️Sentiment: Investors are showing increased interest, as the deal could significantly impact the company’s top line.
• 📊Fundamentals: Adding $300 million annually in sales positions Kratos for a 25% valuation uptick, aligning with its price-to-sales ratio.
• 📈Technicals: Currently at $27.48, with a projected move to the $34.11 level in play over the next several sessions.

Honorable Mentions

One of our January Effect stocks, TransMedics Group, Inc. (TMDX), identified during a 2-hour Zoom call with our community, is now up 883% on swing calls! Other notable plays include AMD, FUBO, and SQ, each demonstrating unique catalysts and technical setups. While not part of the top five, these stocks are worth monitoring for secondary opportunities as the day unfolds.

Closing Thoughts

Today’s pre-market action underscores the importance of positioning and preparation. Our focus on the StoryTrading Four Pillars enables a comprehensive understanding of market dynamics, giving our community a distinct edge. If you’re not already part of our Discord, join us to access real-time analysis, live trading guidance, and a thriving network of traders committed to holistic market insights. Use code TALKMARKETS for 50% off the first month when you join our community!

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