The Setup Looked Perfect — Until It Didn’t

The start to one of the strangest weeks of the year…..

With Christmas behind us and New Year's Day closing the market again on Thursday, this is one of those in-between stretches where things can either go completely quiet… or get surprisingly volatile.

So far, the tape looks healthy.

Stocks are holding up well overall, and despite some sharp moves under the surface, nothing today felt like panic. That's a good sign heading into the final days of the year.

Silver Pulls Back After Historic Run

Silver became the focal point of market discussion over the weekend following an extraordinary rally. That attention proved timely, as the metal reversed sharply, gapping lower in futures trading and continuing to weaken into the cash session.

The pullback followed extreme price extension and elevated emotion — conditions that often precede reversals in highly speculative markets. Leveraged silver products, including AGQ, amplified the move, with declines roughly double those of the underlying metal.

While the drop does not invalidate silver's longer-term trend, it highlights the risk of chasing momentum once a trade becomes crowded.

Markets have a habit of punishing crowded trades — especially when everyone is positioned the same way.

The biggest portfolios today are still stacked with the same megacap names, leaving little room for real upside.

That's why a new report focuses on select sub-$10 stocks where the math works differently and upside isn't capped by size.

See the three overlooked names here.

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Big Picture: Metals Need to Cool Off

Gold, silver, platinum, palladium — they all pulled back today.

That doesn't mean the trade is over. It does mean emotions ran too hot, too fast. When volume and hype spike like that, it's usually time to let things breathe.

If we see a couple of controlled down days, there may be bounce opportunities later. For now, patience matters more than prediction.

Space Stocks Continue to Show Relative Strength

While metals cooled, space-related equities continued to stand out as one of the stronger thematic groups in the market.

Among smaller-capitalization names, SIDU remains notable after absorbing multiple offerings while maintaining price structure. Stocks that hold key levels following dilution events often attract renewed attention once selling pressure clears.

Key technical resistance remains near the mid-$2 range. A confirmed hold above that level could open the door to further upside, particularly if volume expands.

Larger names in the sector, including LUNR, ASTS, and Rocket Lab, remain extended but continue to reflect sustained thematic interest.

Selective Opportunities Elsewhere

A handful of additional stocks remain on watch, though many setups require confirmation:

PCLA has held up better than expected and may warrant attention if it proves strength above resistance
HIHO presents higher risk but remains technically interesting if it holds key support
Several overseas-linked names showed volatility but remain lower-quality unless they demonstrate sustained demand

As always, day count, volume, and follow-through remain critical filters.

When momentum cools and markets rotate, opportunity often shifts away from the obvious names.

Sub-$10 stocks aren't about speculation — they're about asymmetric setups where modest capital can move the needle.

A new screen highlights three companies with real revenue growth, institutional support, and improving fundamentals. Download the free report here.

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Final Thoughts

This is the kind of week where discipline really pays.

The market looks good. The themes are there. But holiday weeks reward selectivity, not overtrading. There will be opportunities — there always are — but forcing trades in thin conditions is how good weeks turn bad.