π Wall Street Radar: Stocks to Watch Next Week
πΌ Volume 22: π Breadth Starts to Improve, But Caution Remains
The past week has been marked by choppy market action, making it challenging to identify strong opportunities to add to our portfolio. Despite the turbulence, the indexes managed to close positive on Friday, supported by solid breadth across the board. This improvement offers a glimmer of hope, but the market remains at a critical juncture.
Looking ahead, the next week will be pivotal in determining whether we can build on this momentum and start moving higher again. For now, patience and vigilance remain essential as we navigate this uncertain environment.
In 2025, two key themes continue to stand out: oil and power/energy-related names. Both sectors have been delivering strong performance, and weβre well-positioned with at least one company from each in our portfolio. However, as we move forward, itβs crucial to become more selective and pay closer attention to the evolving market conditions. Staying reactive and adapting to new developments will be key to capitalizing on opportunities while managing risk effectively.
(please check our Market Monitor for additional information)
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T2118
The T2118 index made a double bottom near the critical 10 level and has started to show some improvement, signaling that a strong bounce may be on the horizon to increase overall market breadth. Fridayβs action further reinforced this possibility, offering a glimmer of hope for a broader recovery.
A definitive signal of strength will come when the index crosses upward through its EMA and holds above the 15.00 level. Such a move would suggest that we are finally starting to emerge from the woods and could mark the beginning of a more sustained uptrend.
Adding to the optimism, the VIX made a lower high this week and continued to decrease, providing another encouraging signal for the week ahead. While caution is still warranted, these developments suggest that the market may be setting the stage for a stronger recovery.
T2108
Much like the T2118, the T2108 index has shown encouraging signs of a potential turnaround. After forming a double bottom, the index crossed above its 10 EMA on Friday, providing a second signal that a more positive environment could be taking shape for the week ahead.
Adding to this optimism, the 4% Bull-Bear indicator delivered two strong signals on both Thursday and Friday. On these days, the number of stocks making 4% or more gains far outpaced those experiencing 4% declines, offering another hint of improving market conditions.
Finally, the 25% Quarterly Bull-Bear indicator has started to increase again after a brief pullback, reinforcing the cautiously optimistic outlook. While short-term volatility remains a factor, these developments suggest that the market may be transitioning into a more constructive phase as we move into the new week.
Portfolio updates and new positions:
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Each stock in the watchlist will now feature a risk grade badge next to its name, reflecting our assessment based on factors like volatility, share float, technicals, fundamentals, ADR, and more. This badge is designed to help readers gauge the stock's risk profile, providing valuable context for making informed decisions on how to approach it.
High risk: β οΈ
Medium Risk: π
Low Risk: π‘οΈ
πβ¨ Watchlist Essentials: Top Free Picks
BYND: Beyond Meat Inc π
What they do: Plant-based meat alternatives provider
Why watch? π± Trading at historically low levels with compelling 40% short interest, creating significant squeeze potential. Technical setup shows promising breakout potential above the $4.00-4.10 level with increasing volume. The high short interest combined with any positive catalyst could trigger a substantial upward movement, making this a high-risk, high-reward setup.
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SXTP: 60 Degrees Pharmaceuticals β οΈ
What they do: Pharmaceutical development company
Why watch? π Recent strategic Patent License Agreement with Tufts Medical Center for tafenoquine development and commercialization, specifically targeting babesiosis treatment. Strong technical consolidation under $1.38 resistance with all moving averages now supporting the stock. The post-Christmas momentum is being effectively digested, creating a solid base for the next potential leg up.
MIND: Mind Technology Inc β οΈ
What they do: Ocean technology solutions provider
Why watch? π Impressive 21% QoQ revenue growth with strong earnings momentum. New high-tech products showing significant market traction with 2-3 quarters of backlog revenue. Financial momentum is particularly strong with increasing operating margins and a $1 per share annual EBITDA run rate. Technical analysis suggests continuation potential above $8.00 after the current consolidation phase.
ULCC: Frontier Group Holdings π
What they do: Ultra-low-cost airline carrier
Why watch? βοΈ The clear resistance level at $7.30 has capped price action since October 2024. Technical analysis shows persistent seller exhaustion near this level, suggesting an accumulation phase. A breakthrough above $7.30 could trigger significant upward momentum given the extended consolidation period.
AVGO: Broadcom Inc π‘οΈ
What they do: Semiconductor solutions provider
Why watch? π» Benefiting from semiconductor sector strength led by NVIDIA's momentum. Currently forming a bullish flag pattern with strong 10 EMA support. Stock is effectively digesting substantial post-earnings gains while maintaining technical strength. A break of the current downward channel could catalyze the next leg higher.
RVSN: Rail Vision Ltd β οΈ
What they do: Railway safety technology provider
Why watch? π Significant momentum following crucial Israel Railways Regulation Approval for MainLine Products. Currently executing a textbook low-volume pullback after the initial surge. The technical setup suggests optimal entry after a few more days of sideways consolidation, with volume patterns indicating healthy profit-taking rather than distribution.
INVZ: Innoviz Technologies β οΈ
What they do: LiDAR technology provider
Why watch? π While fundamentals remain challenging, technical setup shows promising momentum potential above $1.80 with volume confirmation. The LiDAR sector theme could provide additional tailwinds, though trading approach should remain tactical given speculative nature.
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