Market Overview
We’re in the middle of holiday trading here, so this is going to be a shortened report. Stocks finished higher as Santa Claus finally arrived for the market. The S&P 500 finished up the most – 1.40%. The Nasdaq was up 1.22% on the week, while the Dow Jones Industrial Average was up 1.20%. I still need to see a new high in the Nasdaq to give the all clear signal, but underneath the surface of the market, good things continue to happen. The biggest story, however, is how metals (mainly silver) have gone parabolic. There’s really nothing to do at this point – it’s too late to chase the move, and you wouldn’t dare sell short. Just sit back, relax, and watch history be made there.
Stocks I Like
DBV Technologies (NASDAQ:DBVT) – 47% Return Potential
What’s Happening
- DBV Technologies S.A. (DBVT) is a leading clinical-stage biopharmaceutical company specializing in epicutaneous immunotherapy (EPIT) through its proprietary Viaskin platform, delivering allergens via the skin to treat food allergies and related conditions, offering investors exposure to the rapidly growing allergy treatment and immunotherapy sector with a focus on innovative, non-invasive therapies for peanut and milk allergies in children.
- The last quarter had revenue of $2.38 million but a loss of $28.44 million.
- This valuation on DBVT is very high with Book Value at just 1.31. The company has a lot of debt.
- From a technical point of view, DBVT recently broke out from a wedge formation. It’s retesting the breakout now, and if it holds, it’ll be very bullish.
Why It’s Happening
- DBV Technologies S.A. is poised for a major breakthrough in peanut allergy treatment with positive topline results from the Phase 3 VITESSE trial of its VIASKIN® Peanut patch in children aged 4-7 years, announced in December 2025. Meeting the primary endpoint with a statistically significant treatment effect (46.6% responders vs. 14.8% placebo), this non-invasive epicutaneous immunotherapy offers a convenient, safe alternative to oral therapies, addressing a critical unmet need in a market affecting millions of children and paving the way for a BLA submission in H1 2026.
- Accelerated regulatory path and commercialization readiness strengthen DBV’s momentum. With the trial’s success triggering warrant exercises for additional funding and alignment with the FDA on safety data, the company is on track for potential priority review, followed by a BLA for ages 1-3 in H2 2026. This positions VIASKIN Peanut as a potential first-in-class, patient-friendly solution in the growing food allergy immunotherapy space.
- Robust pipeline and clinical validation build confidence in DBV’s epicutaneous immunotherapy platform. Positive long-term data from extensions like EPITOPE (showing continued benefit through 36 months in toddlers) and ongoing advancements highlight the technology’s efficacy and safety profile, diversifying potential applications beyond peanut allergy while reinforcing its leadership in innovative, skin-based treatments for immunologic conditions.
- Strategic leadership enhancements signal execution strength. Recent appointments, including a new Chief Commercial Officer and board members with deep expertise, equip DBV to navigate regulatory milestones and prepare for potential U.S. launch, creating a compelling narrative of a well-resourced biotech ready to transition from clinical success to commercial impact.
- Analyst Ratings:
- Cantor Fitzgerald: Overweight
- Citizens: Market Outperform
My Action Plan (47% Return Potential)
- I am bullish on DBVT above $14.50-$15.00. My upside target is $28.00-$30.00.
Hertz (NASDAQ:HTZ) – 77% Return Potential
What’s Happening
- Hertz Global Holdings, Inc. (HTZ) is a leading global vehicle rental company operating one of the world’s largest car rental networks under the Hertz, Dollar, Thrifty, and Firefly brands, offering daily and longer-term rentals along with ancillary services and used vehicle sales, providing investors exposure to the rapidly growing mobility and travel services sector with a focus on airport and leisure travel, fleet management, and innovative customer experiences.
- The company had $2.48 billion in revenue in the last quarter along with $43 million in earnings.
- Valuation is solid in HTZ. Price-to-Sales is 0.20 and EV to EBITDA is at 8.30.
- From a technical viewpoint, HTZ has been coiling within a descending channel for months. This is setting up an epic short squeeze.
Why It’s Happening
- Hertz Global Holdings Inc. is staging a compelling turnaround story in the car rental sector, returning to positive EPS profitability in Q3 2025 after years of challenges, driven by disciplined fleet management, higher vehicle utilization, and strategic retail sales. With record utilization levels and a renewed focus on core operations under new leadership, the company is rebuilding investor confidence amid stabilizing travel demand and operational efficiencies.
- High-profile backing from Bill Ackman adds significant credibility and upside potential. The prominent investor’s Pershing Square holding a substantial stake, combined with his recent social media endorsement of bullish analyses, sparked an 11.8% surge in late December 2025, highlighting growing optimism about Hertz’s recovery path and potential for strategic value creation in a recovering market.
- Strong Q3 2025 financial momentum signals improving fundamentals. Achieving a surprise profit with adjusted EPS well above expectations, alongside revenue stability and reduced depreciation costs, reflects successful execution of the “back-to-basics” transformation, positioning Hertz to benefit from seasonal travel rebounds and enhanced pricing power in key markets.
- Fleet optimization and diversification efforts enhance long-term resilience. By streamlining the vehicle portfolio post-EV adjustments, expanding retail sales channels like Hertz Car Sales, and pursuing partnerships for broader mobility solutions, the company is reducing volatility, improving cash flow, and adapting to evolving consumer preferences in a competitive landscape.
- This is a strong candidate for a short squeeze with over 43% of floated shares being sold short.
- Analyst Ratings:
- Morgan Stanley: Equal-Weight
My Action Plan (77% Return Potential)
- I am bullish on HTZ above $4.80-$5.00. My upside target is $9.50-$10.00.
Market-Moving Catalysts for the Week Ahead
Now, the Santa Claus Rally Period
The Santa Claus Rally is a well-documented seasonal stock market phenomenon, referring to the historical tendency for stock prices to rise during the last five trading days of December and the first two trading days of January (a seven-trading-day window).
It was coined by Yale Hirsch in the 1972 Stock Trader’s Almanac, and it has occurred about 76-80% of the time since 1950, with the S&P 500 averaging a 1.3% gain during this period (compared to a typical seven-day return of ~0.2%).
Possible causes include holiday optimism, year-end tax strategies, bonus-driven investments, and lighter trading volume from institutional investors on vacation, allowing retail buyers to push prices higher. Absence of the rally has sometimes signaled weaker performance in the following year, though it’s not a guaranteed predictor.
Sector & Industry Strength
As we head into the final week of 2026, it’s clear that healthcare (XLV) won out the fourth quarter. The rest of the sectors are huddling in a pretty tight pack, save for utilities (XLU) and real estate (XLRE).
While it’s good to see utilities and real estate at the bottom of the pack, the outperformance of healthcare sets a somewhat cautionary tone going into the new year. We’re going to have to see more from the growth sectors for that to change.
The good news is that tech (XLK) is still in a position to quickly change the tone. Financials (XLF) are sitting in second place, and that’s simply not where you’d see such a sector if the market was about to rollover. It looks like more chop is in store in the near-term.
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Editor’s Note: The tape is in expansion mode.
A Golden Year (Sector ETF: GLD/SLV)
2025 will go down into the record books as silver’s year. It’s the best-performing asset by far, and to be honest, far exceeded my own expectations in terms of performance. I’m looking at the ratio between gold (GLD) and silver (SLV) here.
Unsurprisingly, this ratio has completely collapsed over the past few months as silver outperformed gold by a very wide margin. If you go back and look at history, this is the type of price action that precedes key tops.
In the meantime, we’re in the blowoff phase of this move. Prices could still go higher, but in reality, it’s become too dangerous to chase and too dangerous to short. It’s best to wait for the dust to settle on this historic move.
Cryptocurrency
The price action in Bitcoin continues to show weakness and warn of additional downside. It’s been effectively consolidating its losses over the past month. As a rule, this warns that lower prices are on the horizon, but prices would have to break support for further confirmation.
Unless Bitcoin can rally back above 94,000-95,000, there are significant downside risks. It’s been making lower-lows and lower-highs, which means that a bear trend is in effect. Trends are notorious for lasting longer than most people expect.
A final washout down to the 74,000-76,000 zone cannot be ruled out entirely. If that happens, it may present a unique buying opportunity, as the odds of crypto having back-to-back bearish years is not very likely.
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