π Wall Street Radar: Stocks to Watch Next Week
πΌ Volume 40: πΊπΈπ€π¨π³ Tariff Talks & Trade Tensions: Stocks Poised for Volatility
Portfolio updates and new positions:
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T2118
This week, the T2118 indicator closed at 83.67, nearing the critical 90 threshold that often signals an overheated market. Historically, reaching this level leads to a significant market pullback, allowing for necessary equity rebalancing.
Meanwhile, the VIX remains above 20, indicating persistent underlying volatility and the possibility of further developments. Most favorable trading opportunities seem to have already emerged in recent weeks. At this stage, a cautious approach is warranted as we await the market's next move. Last week, we modestly increased our risk exposure by initiating three new positions. Of these, two remain active, while one was closed at breakeven.
T2108
The T2108 indicator closed at 55.37, continuing its upward trajectory. This level is roughly in line with the readings seen in February and March, which preceded a market pullback. The question now is whether this time will be different.
While the T2108 is not currently overextended, viewing it in conjunction with the T2118 suggests that the market may have some room to advance further. However, a period of consolidation or a healthy pullback would be beneficial to sustain the ongoing uptrend.
The 4% Bull-Bear IndicatorΒ delivered mixed signals this week, reflecting a choppy market environment lacking clear direction. Notably, the biggest gains were concentrated among companies reporting earnings.
TheΒ 25% Bull-Bear IndicatorΒ is now balanced, with bulls and bears locked in a standoff for dominance over the marketβs long-term direction.
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Each stock on the watchlist will now have aΒ risk grade badgeΒ next to its name, reflecting our assessment based on factors such as 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 about approaching it.
High risk: β οΈ
Medium Risk: π
Low Risk: π‘οΈ
πβ¨ Watchlist Essentials: Top Free Picks
UNH: UnitedHealth Group Inc π‘οΈ
What they do: Health insurance and managed care.
Why watch? π₯UnitedHealth's stock tanked following the Q1 earnings report after the company revised its earnings guidance for this year. Upon closer evaluation, the challenges faced by the company are likely to be short-lived, though UNH is now forced to deal with higher costs. Technically, the stock is forming a very sharp falling wedgeβusually, this pattern does not resolve in a V-shape bounce, but a rebound from this level is likely. The current price sits at a major monthly support level from 2022, providing another layer of safety and a potential spot for a bounce. This setup could offer a compelling risk/reward for traders watching for a reversal.
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CEG: Constellation Energy Corp π
What they do: Clean energy generation, with a focus on nuclear and renewables.
Why watch? β‘ Constellation Energyβs stock has been climbing, driven by its bold strategy to meet the surging energy needs of the AI sectorβa vision reinforced during the Q1 2025 earnings call. Management emphasized the critical role of reliable, especially nuclear, power for data centers, while cautioning against overblown market expectations. The company is taking a strategic approach to supplying power-hungry data centers, positioning itself for substantial, but rational, long-term growth. Technically, the stock just made a double inside day with very low volume above the $267 key level. A break above $275.00 could trigger another leg higher.
UBER: Uber Technologies π‘οΈ
What they do: Global ride-hailing, delivery, and mobility platform.
Why watch? π Uber posted good (but not outstanding) earnings last week. The stock showed slight relative weakness compared to the indexes, but itβs holding above $82.00. A few more days of sideways consolidation could set the stage for a renewed move higher.
ZS: Zscaler Inc π‘οΈ
What they do: Cloud security and zero-trust networking.
Why watch? π Zscaler is set to report earnings at the end of the month. For now, the stock is consolidating just below $235.00, which is the key daily level to watch for a potential breakout.
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FCX: Freeport-McMoran Inc π‘οΈ
What they do: Copper, gold, and molybdenum mining
Why watch? πͺ FCX hasnβt been a top performer recently, but the setup is interesting. The copper index is forming a VCP (volatility contraction pattern), similar to FCX, making the stock a preferred play over the index. All major moving averages are stacked to support the price, and a move above $38.00β$38.50 could set up a test of the 200-day moving averageβthe key obstacle to clear for a healthy uptrend.
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