Weekly Market Recap, Watchlist & Trade Highlights 06/09/25
Breakouts in small caps and growth, Elon-Trump feud, Space, Drone and eVTOL stocks
Market Recap
The market continued to grind up this week, with SPY 0.00%↑ and QQQ 0.00%↑ now just around 2% from their all time highs set back in February.
Despite some signs of fatigue in individual names, the indices remain firmly in an uptrend. A simple tool like the 10-day and 20-day moving averages can help track this momentum. History shows that rallies can extend much longer than expected — from the COVID “V-shaped” recovery to the late 2023 melt-up, strength can persist.
This week, IWM 0.00%↑ and ARKK 0.00%↑ finally broke out of a 3-week consolidation range. Notably, on Friday, the ARKK ETF broke out on its highest volume since December 2023, even as TSLA (its largest holding at 10%) sold off sharply.
If these breakouts hold, it could signal renewed strength in small-cap and speculative growth stocks — areas that have lagged recently.
That said, it’s worth noting: breakouts in small caps and speculative names often come late in a rally cycle. If IWM and ARKK roll back into their prior ranges, that would be a clear red flag for bulls.
Watchlist
The biggest news this week came from the escalating feud between Elon Musk and Donald Trump, which unfolded on Thursday. It began with Musk publicly slamming Trump’s new spending bill, followed by Trump declaring their relationship was “over” and threatening to revoke government contracts involving Musk’s companies.
TSLA 0.00%↑ plunged on the news, at one point falling -17% intraday, marking its largest single-day loss in market cap, and trading its highest volume since January 2023. The stock will likely need a period of consolidation as this situation plays out.
Space
One consequence of the feud: Trump reportedly threatened to cancel NASA-related contracts with SpaceX. This sparked renewed interest in competing space companies.
"Since Thursday’s exchange, at least three commercial space companies, Rocket Lab, Stoke Space and Jeff Bezos’s Blue Origin, were contacted by government officials about the status of their rockets and when they might be available for government missions, according to four people familiar with the inquiries." - Source
RKLB 0.00%↑ Rocket Lab gapped up Friday and held the dip, closing with a hammer candle off the 10 EMA. The $30 area has acted as resistance previously. If it holds above that, all-time highs come into play.
ASTS 0.00%↑ surged 35% on the week, partially due to speculation that it could benefit if Starlink contracts are revoked. An analyst note mid-week referenced the possibility of Jeff Bezos investing, citing an Instagram post. Last year the stock rallied over 1000% and has kept most of its gains, going sideways for almost a year.
RDW 0.00%↑ remains in an uptrend, having broken out two weeks ago. No fresh entry here unless we see a pullback.
PL 0.00%↑ posted its first quarter of positive free cash flow and gapped up on earnings. Some digestion here would be healthy before a potential next leg up.
BKSY 0.00%↑ another space stock, is forming a cup and handle pattern that looks ready to breakout.
UBER 0.00%↑ in the spotlight due to speculation it could benefit from TSLA weakness, especially in the autonomous vehicle race. Technically, it formed a rounded bottom consolidation zone over the prior 6 trading sessions.
SHOP 0.00%↑ has formed an inverse head and shoulders pattern and could see further upside as a major ARKK holding.
AMZN 0.00%↑ rumored to be testing humanoid delivery robots, a popular investment theme currently, watching for breakout over 215.
TEM 0.00%↑ has been consolidating after a sharp rebound from a short report issued by Spruce Point Capital. The stock recovered quickly, suggesting strong underlying demand despite the negative sentiment.
CRCL 0.00%↑ hot IPO that started trading on Thursday.
Drones and eVTOL
President Trump signed a new executive order Thursday aimed at advancing U.S. airspace innovation and security. This could be a catalyst for drone, eVTOL, and aerospace stocks in the coming weeks.
ACHR 0.00%↑ JOBY 0.00%↑ UMAC 0.00%↑ RCAT 0.00%↑ UAVS 0.00%↑
Quantum
QBTS 0.00%↑ no fresh news in this space but after multiple days of low volume digestion the stock looks to be resuming its uptrend.
Trade Recaps
HOOD 0.00%↑ breakout was an idea from last weeks watchlist, it also had tailwinds from investors anticipating a possible S&P 500 inclusion:
HIMS 0.00%↑ breakout was another idea that didn’t have any followthrough, however, early entries and timely exits resulted in a green trade:
APLD 0.00%↑ was a huge breakout after news that “Applied Digital shares are trading higher after the company announced a 250MW AI data center lease with CoreWeave.”
TSLA 0.00%↑ breaking news short trade when Trump spoke at the whitehouse regarding his relationship with Elon:
CRCL 0.00%↑ IPO breakout on the open:
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