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Macro Overview: Navigating a Quiet Market

As the year winds down, today’s pre-market session opens to a subdued and uneventful atmosphere. With no official top picks made during our discussion, the focus shifts to monitoring existing positions and broader market trends. A lack of significant earnings reports or major catalysts has contributed to the stillness, echoing the seasonal lull between Christmas and New Year’s.

The highly anticipated "Santa rally" failed to materialize, leaving major indices like QQQ and SPY under pressure. Meanwhile, ARKK and IWM are trading near support levels, and BTC is testing critical resistance around $92,000. This backdrop presents a delicate balance for traders preparing for potential January tax-deferral selling, which may already be getting front-run by the market.

For a deeper dive into today’s pre-market discussion, check out our full pre-market prep video on YouTube: Watch Now.

While no definitive new trades were recommended, a few existing positions and market trends stood out as noteworthy. Here’s a look at the day’s most promising watchlist candidates.

Aehr Test Systems (AEHR)

📊 Type: Swing
🎯 Target: $11.00+

⚡️ Catalyst:
AEHR remains the standout among January effect stocks, benefiting from tax-loss selling reversals. Recent strong closes position it as a leader in this category.

❤️ Sentiment:
Market sentiment around AEHR has improved, with outperformance relative to indices indicating renewed investor interest.

📈 Fundamentals:
The stock demonstrates a strong valuation backdrop, amplified by its potential in the semiconductor testing space.

📊 Technicals:
AEHR’s ability to outperform its peers suggests further upside. Key support at its 20-day moving average (DMA) reinforces confidence in the trade.

TruGraphics (TRUG)

📊 Type: Swing
🎯 Target: $1.00

⚡️ Catalyst:
Despite a challenging morning, TRUG’s low-hanging fruit lies in its 200-DMA at approximately $1.00, presenting an attractive swing setup.

❤️ Sentiment:
Broad market weakness has contributed to TRUG's dip, but there’s no company-specific negative sentiment.

📈 Fundamentals:
Backed by a resilient valuation, TRUG has the potential for a solid recovery once macro pressures ease.

📊 Technicals:
Trading near proximal lows, TRUG offers a favorable risk-reward profile for swing traders.

Mobilicom Limited (MOB)

📊 Type: Swing
🎯 Target: Long-term growth

⚡️ Catalyst:
With an upcoming CEO interview, MOB is gaining attention as an undervalued player in the drone technology sector.

❤️ Sentiment:
Positive anticipation around the interview bolsters sentiment, drawing parallels to past successes with UMAC.

📈 Fundamentals:
MOB stands out as the "most undervalued drone stock" on the market, offering long-term growth potential at an attractive valuation.

📊 Technicals:
Its chart structure mirrors early-stage setups seen in explosive growth stocks, suggesting more upside is possible.

Tesla, Inc. (TSLA)

📊 Type: Short-term scalp
🎯 Target: $413–$415

⚡️ Catalyst:
Analyst reports citing Q4 deliveries below expectations create near-term pressure on TSLA.

❤️ Sentiment:
Market sentiment has turned cautious, with a high probability of testing key support levels.

📈 Fundamentals:
While long-term fundamentals remain intact, short-term headwinds justify a tactical approach.

📊 Technicals:
Current levels near $420 signal potential downside to $413–$415, making this a prime short opportunity.

Notable Mentions

• Bitcoin (BTC): While FBTC hovers around $92,000, its RSI cooling off from 82 to 40 provides some optimism for stabilization.
• VeriSign, Inc. (VRSN): Warren Buffett’s Berkshire Hathaway disclosed a stake in VRSN, making it a stock to watch for potential buy-the-dip opportunities.

Closing Thoughts

While today’s market presents fewer high-conviction trades, our top picks highlight promising setups amid quiet conditions. To access detailed trade breakdowns, live discussions, and exclusive opportunities, consider joining our StoryTrading Discord community. Use code TALKMARKETS for 50% off your first month and get locked in at just $59/month recurring before prices increase to $79/month in January. Join now and elevate your trading game.

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