Podcast
Next Day Prep #161: Tech Sector Holds Amidst Widespread Retreat – Monday 12/1/2025
Key takeaways
- Be tactical in trading tomorrow, focusing on relative strength in mortgage plays, mega-cap leaders, and niche tech stocks. Monitor key index levels with caution regarding the choppy market environment.
Next Day Prep: Tech Sector Holds Amidst Widespread Retreat
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. December started with a risk-off tone in the market, leading to a broad-based retreat across major indices.
Overnight Headlines
- S&P 500 finished down by half a percent, while the Dow dropped almost a full percent due to weakness in cryptocurrencies and rising Treasury yields.
- Sectors like Utilities, Health Care, and Industrials experienced significant declines, with Aerospace and Defense names hit by speculation around the Russia-Ukraine conflict.
- Technology sector held up, driven by mega-cap names like Apple and NVIDIA following a partnership with Synopsys.
Economic Announcements
Market saw indecision amid weak ISM manufacturing data indicating stagflation, with major indices consolidating within tight ranges waiting for a catalyst.
Earnings Highlights
- Energy sector gained, supported by rising crude oil prices. Notable strength in Mortgage & consumer finance names like RKT and UWMC.
- Mega-cap leaders like Apple showed relative strength, while software and biotech stocks like APP and VSTS closed strong signaling potential breakouts.
Top Movers
- Stocks showing accumulation into the close and defying the sell-off are worth watching for potential breakouts.
- Names like ADMA in biotech and upgrades for Chevron, Take-Two, and Unity are notable.
Quick Trade Ideas
Focus on the mortgage sector and mega-cap leaders for potential continuation setups. Watch for early pullbacks or consolidations in strong closing momentum stocks for breakout opportunities.