The Upcoming Week 12/7/25
Are we setting up for a Santa rally to close out 2026?
The past few weeks have been relatively quiet as we had the Thanksgiving holiday, but I’m expecting activity to pick up as we head into the end of this year.
The market has practically erased the downturn we saw in mid-late November with the Nasdaq down just 2% after being down 8.5% at the low of this correction. Many names have recovered swiftly and we have a new batch of potential leading stocks to pay attention to as we wind down 2025.
A few weeks ago many stocks looked broken and like they were ready to fall off a cliff. Something to remember is that failed bearish patterns often become some of the biggest and best upside movers. “From failed moves come fast moves” the saying goes. This means a failed breakout or failed breakdown leads to a fast move in the other direction. We have seen this extensively over the last few weeks in a variety of stocks whether it’s BE, RDDT, INTC, CRWV, and many others looking like they were on the verge of breaking down hard only to reverse and viciously bounce in the other direction.
This is how the market works.
The market wants to inflict as much psychological pain as possible on market participants. We’re not owed anything by the market, the market doesn’t care how much you’ve made or lost or how upset or happy you are. Prices move to find the level where the maximum number of people are forced to react. The market’s only job is to clear trades and our job is to survive the mental warfare long enough to succeed.
I also want to let you all know I’ve already started working on my 2026 year ahead preview. Last year’s was a huge success with the vast majority of themes and many of the names outperforming the market by a wide margin. In that preview I highlighted the risk of a major correction in H1 2025 tied to Trump volatility and tariffs that would end up being buyable, why I expected solar and China to outperform, and more. The 2026 preview will be posted exclusively here on Substack and as we get closer to the end of 2025, I’ll share a full recap of how the 2025 preview performed. A few of the picks included OKLO, KTOS, NBIS, TEM, EOSE, FSLR, and more. If you want to review the 2025 preview, you can find it here. I recapped the 2025 preview here as well. The 2026 preview will be far more in depth now that I finally have a space where I can break everything down properly.
This past week we got official news that robotics are in focus of the Trump administration. Commerce Secretary Howard Lutnick has been spending time with robotics CEOs and is reportedly preparing President Trump to push a robotics focused executive order within the next year. Multiple departments and lawmakers are reportedly rushing towards a formal national robotics framework as China ramps up their robotics push. China currently sits ahead of the U.S. in deployed industrial robots and the urgency of this robotics executive order suggests the administration understands how important this battle is. It’s not just the AI race but the robotics race as well.
All that to say this… I’ll be releasing my full robotics primer next Thursday that breaks down robotics and the impact the sector will have on the economy, the public companies best positioned to win in a robotics driven thematic market, and much more. It will be very similar to my energy primer I released here, if you haven’t checked it out I suggest you do so. It’s been my most popular post by far!
In the remainder of this article I’m going to discuss a theme that has had a ton of news and now looks ready to wake back up after a stretch of dormancy, my #1 focus name to get positioned in, a note from a government official going under the radar that could ignite a new theme (using the same framework outlined here), UiPath and Rubrik earnings, momentum stocks, some of my favorite charts and setups heading into the end of 2025, my thoughts on the past week and the week ahead, and more.
This is a packed article so grab something to eat or drink and get ready to dive in.
To start things off, let’s take a look at the indices and a few important ETFs: