Stocks should be watched before Christmas: $RKLB $AEO $AA $TSLA $HLT $ANF $TGT

As we enter the final stretch before the holidays, the market is presenting a unique blend of festive cheer and volatility. With only three trading days left before Christmas (December 22-24), the window for execution is narrowing.

At Stonki, our AI-powered investment advice engine has been scanning premarket data to construct a personalized trading plan for this critical week. The goal is clear: capture momentum early in the week and protect capital as liquidity dries up.

Here is your comprehensive market analysis and game plan for the final trading days of the year.

The Premarket Pulse: Monday, Dec 22

The market is flashing green signals to start the week, with SPY and QQQ both pushing higher in the premarket. However, not all green is created equal. Our AI investment analysis indicates a bifurcation in the market—momentum sectors like Space and EV are heating up, while traditional value retail is showing cracks.

Critical Insight: This week is about precision. Monday is your primary execution day. Tuesday is for management. Wednesday is a half-day session where you should likely be largely cash or holding only high-conviction runners.

🚀 High-Conviction Setups: AI Recommendations

Our system has identified fresh opportunities that are showing stronger relative strength than the broader market. These setups are ideal for traders looking for AI options advice or directional stock plays.

1. RKLB (Rocket Lab) – The Momentum Leader

• Premarket Action: Gapping up to $74.00 (+4.84%)
• The Setup: RKLB is the clear leader in the space sector breakout. The stock is gapping significantly above previous resistance.
• Stonki’s Analysis: The gap above $74 opens the door to $80. However, this is a high-volatility play.
• Options Angle: Due to high implied volatility, options premiums are expensive. Traders might consider defined risk options strategies like vertical spreads rather than buying naked calls to mitigate Theta decay during the holiday break.

2. AEO (American Eagle) – The "Cleaner" Retail Play

• Premarket Action: Testing $28.15
• The Setup: While ANF has rallied 73% this month, it is technically extended. AEO offers a similar retail theme but with a fresher setup near 52-week highs.
• Risk/Reward: A break above $28.20 confirms the move. If it falls below $27, the setup fails.

3. AA (Alcoa) – Sector Rotation

• Premarket Action: Up to $52.08
• The Theme: We are seeing a rotation into commodities, driven by aluminum sector strength and China stimulus narratives.
• Trigger: A hold above $52.50 signals a potential run toward $55.

🎯 Update on Existing Watch List

For those utilizing Stonki for portfolio monitoring and alerts, here is the status of our core watchlist items:

• TSLA (Tesla): Recovering. After a rejection at $490 on Friday, TSLA is trading at $487 premarket. The momentum is improving. We are watching for a reclaim of $490. If you are holding, ensure stops are raised to protect gains.
• HLT (Hilton): Coiled. Trading at $292.71, HLT is just dollars away from an All-Time High (ATH) breakout at $295. This remains the cleanest institutional play on the board.
• TGT (Target): Avoid. The breakout has failed, and the stock is weakening into the $97 level. This reinforces the importance of cutting losers quickly—a core tenet of options risk management.

📅 The 3-Day Execution Schedule

To navigate this holiday week successfully, you need a disciplined schedule. Here is how Stonki advises approaching the calendar:

Monday, Dec 22 (High Volume)

• Focus: This is the primary positioning day. Liquidity is still present.
• Action: Watch the open on RKLB and AEO. If TSLA reclaims $490, it validates the bullish thesis.
• Review: Conduct a full portfolio review by 3:00 PM ET.

Tuesday, Dec 23 (Thinning Volume)

• Focus: Profit taking and risk reduction.
• Action: Consider scaling out of 50% of winning positions by noon. Avoid initiating new swing trades late in the day.
• Warning: 0DTE options trading becomes dangerous here as spreads widen.

Wednesday, Dec 24 (Skeleton Crew)

• Focus: Preservation.
• Action: The market closes at 1:00 PM ET. Volume will be extremely thin. Only hold your highest conviction positions. If a trade isn't working by 10:30 AM, cut it.

📊 Summary Watch List & Triggers

Symbol	Entry Watch	Stop Loss	Target 1	Risk Level	Status
RKLB	$74 Gap	$70	$80	High	New Setup
AEO	$28.15	$27	$30	Medium	Breakout
AA	$52.50	$50	$55	Medium	Rotation
TSLA	$490 Break	$475	$500	Medium	Recovering
HLT	$295 Break	$285	$305	Low	Coiled

💡 Options Strategy & Risk Management

Trading during a holiday week requires adjustments to your strategy, particularly regarding options Greeks.

1. Watch Theta (Time Decay): With the market closed on Thursday (Christmas) and potentially slow on Friday, time decay will accelerate. Buying short-dated options is risky.
2. Income Focus: This environment can be favorable for selling options for income, such as credit spreads, provided you manage the gamma risk associated with low liquidity.
3. Position Sizing: Reduce your standard position size. If you normally trade 10 contracts, consider trading 5. The lack of liquidity means slippage can be significant if you need to exit in a hurry.

How Stonki Helps You Stay on Track

Stonki is an SEC Registered Investment Advisor that provides non-discretionary advice. We don't execute trades for you, but we provide the intelligence you need to make informed decisions.

• Personalized Plans: We tailor watchlists based on your risk tolerance.
• Smart Alerts: Get notified immediately if TSLA breaks support or RKLB hits a profit target, so you don't have to stare at the screen all holiday.
• Risk Guardrails: We help you calculate proper stops and position sizing to ensure one bad trade doesn't ruin your week.

Disclaimer: Stonki provides investment advice and recommendations but does not execute trades or hold custody of user funds. All trading decisions are made by the user. Options trading involves significant risk and is not suitable for all investors.