Santa Claus Rally Watchlist: Space, Drones, & Quantum Stocks

What's up, studs? Welcome to the Christmas Week edition of the blog.

The market is currently in a state of "Christmas Chop." The Nasdaq (QQQ) has been range-bound since October, digesting the gains from the year. But while the indices are flat, there are massive sector rotations happening under the hood.

I have been trading the Santa Claus Rally since 2008, and one thing is clear: Don't force trades in the Mega Caps.

Instead of grinding away on Apple ($AAPL) or Palantir, the real money this week is flowing into speculative themes: Space, Drones, and Quantum Computing.

Theme 1: The Drone Supercycle ($RCAT, $UMAC)

Drones are becoming the dominant theme for the end of the year.

• Red Cat Holdings ($RCAT): We are seeing a 2-day push remounting the 200-Day Moving Average. This has room to run.
• Unmanned Machines ($UMAC): A "turdy, specky" name forming a fantastic W-Pattern breakout over the 50-day moving average.
• Ondas ($ONDS): After a massive pullback from $12 to sub-$1, it is finally consolidating.

Trader Note: In a speculative rally, you want to trade the "trashier" names. High beta, high volatility. That is where the percentage gains are.

Theme 2: The Space Race ($FJET, $FLY)

Anything with the word "Space" in it is catching a bid.

• Starfighters Space ($FJET): This was an all-day trender in our chat room. Clean breakouts, clean flags. It is the leader of the pack right now.
• Firefly Aerospace ($FLY): A recent IPO showing a bottoming pattern. It has filled the gap and is seeing a volume pop.
• The Basket: Keep an eye on Rocket Lab ($RKLB) and AST SpaceMobile ($ASTS) as they lead the sector higher.

Theme 3: Quantum & Nuclear

The "Future Tech" trade is widening out.

• Quantum Computing: Rigetti ($RGTI) and D-Wave ($QBTS) are breaking out of wedges and remounting their 50-day moving averages. This is a classic "Big Dipper" bottoming pattern.
• Nuclear IPO ($AMTM) AMTM is a recent IPO that is breaking out of its second range. If it clears here, it has a clear path to $32.

The "Grinch" List (Shorts)

While we love the spec plays, some sectors look weak.

• Crypto Proxies: Coinbase ($COIN) and MicroStrategy ($MSTR) are showing Bear Flags. If Bitcoin sneezes, these could catch a cold.
• Netflix ($NFLX): Showing a 10-day weak range break. Watch for a flush under $92.

Disclaimer: This is for educational purposes only and not financial advice. Trade at your own risk.

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Start 2026 with a bang.

Don't let another year go by guessing at tickers. Join my Live 60-Day Bootcamp and learn the exact strategies I use to find sectors like Space and Drones before they explode.

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About the Author: Kunal Desai

Kunal Desai is the CEO and Head Trader at Bulls on Wall Street. With over 15 years of experience, Kunal specializes in swing trading and momentum strategies. He teaches students how to navigate market cycles in his Live 60-Day Bootcamp.

Start 2026 with a bang.

Don't let another year go by guessing at tickers. Join my Live 60-Day Bootcamp and learn the exact strategies I use to find sectors like Space and Drones before they explode.

👉 Click here to apply for the Live 60-Day Bootcamp

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