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Market Overview

It was the exact type of market bulls needed to see last week. Tech reasserted itself into the leadership position, and the Nasdaq led the way higher, finishing up 0.91%. The Dow Jones Industrial Average closed at its highest weekly level in history, as it rallied 0.50%. The S&P 500 closed at a weekly record as well, as it rallied 0.31%. As bullish as stocks look right now, crypto is still having some problems, but let’s see if Powell’s rate cut this week can give the bulls what they need. It looks like Santa Claus is coming to town after all (but remember, he doesn’t technically arrive until after Christmas for stocks).

Stocks I Like

NextEra Energy (NEE) – 44% Return Potential

What’s Happening

• NextEra Energy, Inc. (NEE) is a leading clean energy company and the world’s largest electric utility holding company by market capitalization, generating, transmitting, and distributing power through renewables like wind and solar, nuclear, and natural gas, offering investors exposure to the rapidly growing sustainable energy and infrastructure sector with a focus on innovative, low-carbon solutions and grid reliability.
• The last quarter showed $7.97 billion in revenue and $2.35 billion in earnings.
• This valuation on NEE is solid. P/E is at 26.88, Price-to-Sales is at 6.64, and EV to EBITDA is at 18.64.
• From a technical standpoint, NEE is consolidating nicely within a rectangle formation. This opens the door for another leg higher.

Why It’s Happening

• NextEra Energy Inc. is capitalizing on the AI-driven electricity surge, with hyperscalers like Google signing long-term deals for carbon-free power to fuel data centers and cloud operations. As U.S. power consumption hits record highs in 2025-2026, NextEra’s renewables and nuclear assets position it as the premier supplier in this multi-trillion-dollar energy transition, unlocking explosive demand from tech giants and creating a narrative of indispensable infrastructure growth.
• Rapid expansion of the renewable energy pipeline drives NextEra’s long-term dominance. Adding 3.2 gigawatts of new renewables and storage to its backlog in Q2 2025 alone, including over 1 gigawatt for hyperscalers, the company is scaling wind, solar, and battery assets to meet escalating clean energy needs, reinforcing its story as the world’s largest generator of renewable power with a fortified position in the global shift to sustainable electricity.
• Strong capital investment blueprint fuels NextEra’s growth engine through 2029. Committing nearly $74.6 billion to infrastructure upgrades, clean generation additions, and battery storage, the company is enhancing grid reliability and efficiency, building a resilient platform that captures value from electrification trends and positions it for sustained earnings expansion in a sector ripe for modernization.
• Attractive dividend growth and financial resilience appeal to income investors. With a 3.05% yield and a commitment to 10% annual increases through at least 2026, alongside Q3 2025 core FFO growth of 13%, NextEra balances shareholder returns with operational strength, creating a compelling defensive growth story that outperforms peers amid economic cycles.
• Analyst Ratings:

My Action Plan (44% Return Potential)

• I am bullish on NEE above $73.00-$74.00. My upside target is $120.00-$122.00.

Hecla Mining (HL) – 24% Return Potential

What’s Happening

• Hecla Mining Company (HL) is a leading silver and gold mining company operating in North America, producing precious metals including silver, gold, lead, and zinc from flagship assets like the Greens Creek mine in Alaska, offering investors exposure to the rapidly growing precious metals and mining sector with a focus on sustainable production and resource expansion.
• The previous quarterly report showed revenue of $409.54 million but no earnings.
• Valuation is steep on HL. P/E is at 55.16, Price-to-Sales is at 8.98, and EV to EBITDA is at 21.96.
• From a technical perspective, HL just broke out from an ascending triangle formation. These are continuation patterns, which creates a tailwind for prices to continue climbing.

Why It’s Happening

• Hecla Mining Company is leveraging the surging demand for silver as a critical mineral, newly added to the U.S. critical minerals list in November 2025, which elevates its strategic importance for national security and industrial applications like solar panels and electronics. This recognition, alongside global moves by India and Russia to monetize and reserve silver, positions Hecla—as the largest primary silver producer in the U.S.—to capitalize on heightened government initiatives and market demand, driving long-term revenue growth in a sector projected to boom through 2030.
• Record-breaking Q3 2025 performance underscores Hecla’s operational excellence and financial momentum. Delivering EPS of $0.15—66.67% above expectations—and robust revenue that beat forecasts, the company showcased resilient production from key assets like Greens Creek and Lucky Friday, reflecting disciplined execution and a strong balance sheet with leaner debt ratios that build investor confidence in its ability to thrive amid precious metals uptrends.
• Strategic exploration approvals expand Hecla’s high-potential resource base. The recent regulatory nod for the Polaris Project in Nevada, set to kick off in 2026, unlocks promising gold and silver prospects with significant upside for resource growth, complementing its diversified portfolio across U.S. and Canadian mines and reinforcing a narrative of proactive expansion in undervalued districts ripe for discovery.
• Robust production guidance and cost efficiencies highlight Hecla’s path to sustained profitability. Maintaining silver output targets while slightly lifting gold guidance for 2025, coupled with operational improvements post-Lucky Friday’s 2023 resumption, positions the company to benefit from favorable metal prices and margin expansion, creating a compelling story of resilience and value creation in the mining sector’s recovery.
• Analyst Ratings:

My Action Plan (24% Return Potential)

• I am bullish on **HL **above $14.00-$14.50. My upside target is $21.00-$22.00.

GeneDx (WGS) – 76% Return Potential

What’s Happening

• GeneDx Holdings Corp. (WGS) is a leading genomics company providing advanced genetic testing services focused on pediatric and rare disease diagnostics through whole exome and genome sequencing, as well as AI-powered data analysis and interpretation platforms, offering investors exposure to the rapidly growing precision medicine and biotechnology sector with a focus on innovative diagnostics for hereditary risks, cancer, and newborn screening.
• The last quarterly report had revenue of $116.74 million and earnings of $14.73 million.
• Valuation is WGS is astronomical. P/E is at 1480, Price-to-Sales is at 11.52, and EV to EBITDA is at 138.41.
• From a charting point of view, WGS recently broke out from an ascending triangle formation. So, it’s no surprise to see prices making new highs again.

Why It’s Happening

• GeneDx Holdings Corp. is revolutionizing pediatric and rare disease diagnostics through its exome and genome sequencing leadership, delivering transformative insights that empower faster, more accurate diagnoses for underserved patients. With nearly 1 million exomes/genomes analyzed via its proprietary GeneDx Infinity™ dataset, the company is building an unmatched repository of genomic intelligence, positioning it as a mission-driven pioneer in the $20 billion+ precision medicine market amid rising demand for personalized healthcare solutions.
• Explosive revenue acceleration underscores GeneDx’s execution momentum, with Q3 2025 revenues surging 52% year-over-year to $116.7 million and exome/genome volumes growing 33% to exceed prior concerns about ramp-up. This robust performance, coupled with raised full-year guidance to $400-415 million, reflects a maturing business model shifting toward sustainable profitability—its fifth consecutive quarter of adjusted net income at $14.7 million—creating a flywheel of growth in neonatal and pediatric testing.
• FDA Breakthrough Device Designation for ExomeDx™ and GenomeDx™ validates GeneDx’s clinical superiority and accelerates market access. This prestigious recognition highlights the platforms’ potential to address critical gaps in rare disease detection, opening doors to enhanced payer reimbursements and health system partnerships while reinforcing the narrative of GeneDx as an innovator driving equitable genomic care for millions worldwide.
• Strategic expansions into newborn screening unlock vast untapped opportunities in preventive genomics. Launching BEACONS—the nation’s first multi-state genomic newborn screening initiative—and joining Florida’s Sunshine Genetics program positions GeneDx to scale early detection for treatable conditions, tapping into a multi-billion-dollar public health imperative and building recurring revenue streams as adoption grows across state Medicaid programs, now covering 36 states including California’s Medi-Cal.
• Analyst Ratings:

My Action Plan (76% Return Potential)

• I am bullish on **WGS **above $143.00-$144.00. My upside target is $280.00-$285.00.

Market-Moving Catalysts for the Week Ahead

A New Macro Regime

It looks like Kevin Hassett is all but a lock as the next Fed Chair. This appointment marks a historic reversal of the post-2008 monetary regime, and shifts the Federal Reserve from an independent inflation hawk to a liquidity tool coordinated with the executive branch, while restoring the Treasury as the ideological center of economic policy—echoing the 1940s–1950s era of financial repression.

Alongside Scott Bessent, this setup would prioritize nominal growth over austerity, accepting higher controlled inflation and deficits to outgrow or inflate away massive debt, engineering lower real rates, soft yield caps, and implicit QE to support risk assets, industry, and national strength.

Markets may initially act confused, but this growth-first, politically aligned framework—hostile to savers and cash yet bullish for equities, Bitcoin, and real assets—ends "higher for longer" rates and represents an ideological break from Powell’s post-GFC orthodoxy. We are preparing accordingly.

Treasury Buybacks Soar

Under Scott Bessent’s leadership, the U.S. Treasury has aggressively expanded its buyback program—culminating in a record $12.5 billion repurchase of older, off-the-run securities on December 3, 2025—to inject liquidity into the banking system amid surging debt and market volatility, boosting bond prices, and easing inventory pressures on primary dealers.

This move is a classic example of the regime inversion toward Treasury-Fed coordination, transforming buybacks from mere cash management tools into proactive liquidity engineering that softens yields, supports asset inflation, and enables outgrowing the $28 trillion debt load without austerity or balance sheet normalization.

As Kevin Hassett emerges as the frontrunner for Fed Chair, these operations signal a new “political Fed” era where lower real rates and implicit QE-like structures align fiscal-monetary policy for growth-first priorities.

Sector & Industry Strength

Coming out of that late-November low, stocks responded exactly as they should have. Technology (XLK) has retaken its place as the top-performing sector going back to the start of Q3, which is a strong sign of healthy risk appetite.

Also, we’ve seen consumer discretionary (XLY) and communications (XLC) storm back and climb into the top four spots in the sector performance rankings, which is very bullish also since these are highly growth-oriented sectors.

Meanwhile, defensive-oriented utilities (XLU) have been slipping, and consumer staples (XLP) remains in dead-last. Of course, we can’t ignore healthcare (XLV) in second-place, but if you look deeper into it, you’ll see that biotech is leading a major charge in that sector too.

Editor’s Note: A very clear message for the bulls – get long.

Risk Assets Still Leading (Sector ETF: SPY/TLT)

This is perhaps one of the most classical risk indicators when it comes to the stock market. We’re looking at the ratio between the S&P 500 (SPY) and long-term Treasuries (TLT). This ratio tells us whether to overweight stocks or bonds, which is key to building wealth in the long-term.

The ratio has been in an uptrend for years. It started well before the QE of the 2010s, and even continued during the bear market of 2022. As long as it keeps making higher-highs and higher-lows, bonds should only be used for tactical reasons within one’s portfolio.

The issue with bonds now is on the long-end, specifically in TLT. With long-term inflation staying elevated, the appeal of holding a bond for 30-years just isn’t there. Stocks are likely to benefit as a result, which is why this ratio keeps climbing.

The Key Ratio for Crypto (Sector ETF: BTC/SPY)

Cryptocurrencies are an important sector to help measure the market’s appetite for risk. It’s been the best sector to grow wealth over the past decade or so, save for a few select stocks. But since October, the sector has had a rough go.

I’m looking at the ratio between Bitcoin (BTC) and the S&P 500 (SPY) here. Bitcoin outperformed the S&P by a wide margin from the November 2022 low. But its underperformance actually began back in July in this year, and it’s worsened ever since.

We’re grappling with a potential false breakout from the saucer formation on this chart. It’s not a good sign that it took out that low from March. However, if this ends up being the low and Bitcoin starts to outperform again, it wouldn’t be that hard to restore the integrity of the uptrend. Bitcoin bulls need to step up here and now.

The Inflation Limbo (Sector ETF: TIP/IEF)

The Fed is going to be cutting rates again next week, and as I’ve stated before, this is creating the backdrop for the next round of inflation. It’s a good time to check back on the ratio between Treasury Inflation Protected Securities (TIP) against 7-10 Year Treasuries (IEF).

This ratio has been consolidating over the past couple of years after exploding to the upside during the inflationary wave of 2020-2022. As a rule, consolidations tend to resolve in the direction of the underlying trend, which is up.

Plus, there’s the symmetrical triangle formation on this ratio chart. This is a continuation pattern specifically, but it can only be confirmed if and when close above the upper trendline of the formation.

My Take:

When TIP outperforms IEF, it signals that the bond market sees inflationary pressures are climbing. When it’s sideways or dropping, it means that inflationary pressures are under control. This may be the most important ratio to watch when the Fed cuts rates next week.

The Fed’s playing with inflationary fire here, and if anything, Powell’s prudence over the past year may be vindicated. I think his mistake was in the first half of the year, but over the past 5 months, the inflation situation has been stable compared to the labor market.

Cryptocurrency

Ethereum staged a solid bounce this past week, and it actually signaled a potentially key momentum shift in this market. After a sharp selloff at the beginning of last week, Ethereum quickly rebounded and formed a higher-low.

Then, a few days later, prices rallied to exceed the high of the previous week. Although this occurred in a very short time frame, it’s the first time we’ve seen any sort of higher-high and higher-low in months.

It held support wonderfully in the 2600-2800 range, but now, it needs to clear resistance at 3200-3300. If it does, then we should see a test of the upper trendline of the descending channel. We won’t be able to give the "all clear" until it closes back above 4000-4200, however.

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