Be Bullish as Market Headwinds Near the End, With Five Tech Names Showing Strong Technicals and Unusual Call Bets

The stock market rebounded as the government signaled it is ready to reopen before further economic damage occurs, and AI leaders helped revive optimism after last week’s “bubble” chatter. As mentioned previously, the market was entering a consolidation phase rather than a full correction, and that scenario played out. Technical conditions now support another leg higher into year-end, with tech providing the most attractive entry points. Below is the broader backdrop and five tech names exhibiting notable strength and heavy call flows.

The S&P 500 and Nasdaq 100 surged Monday as shutdown noise faded. Investors now await the House vote on the Senate bill, which would fund the government through January 30. The bipartisan agreement aims to prevent additional economic fallout from the closure, which has already caused visible strain, and Democrats have used this moment to push President Trump toward accepting several favored measures. Both sides ultimately recognize that prolonged political chaos is untenable, and consensus suggests the government will reopen soon, improving market sentiment.

Another driver of the recent pullback was the renewed “AI bubble” narrative. Some investors questioned whether a circular financing arrangement involving Nvidia and OpenAI inflated valuations, especially with OpenAI’s annualized $20 billion revenue target and its ambition to build trillion-dollar AI infrastructure. Despite the frenzy, AI remains a long-term growth story spanning applications, robotics, quantum computing and beyond, and Microsoft, Amazon and Google are already seeing early returns. Even after a 200 percent rally this year, Micron trades at just 34 times earnings, hardly excessive. A true bubble forms when investors universally celebrate and dismiss valuation risk. With skepticism still widespread, this does not resemble a peak-euphoria environment.

The AI rally is therefore far from over, making last week’s weakness more of a temporary pause. On the technical front, the Nasdaq 100 has erased last Thursday’s decline, and its 3- and 7-day moving averages are flattening. A continued rise that lifts the 3-day above the 7-day would confirm a more constructive pattern. The next catalyst is the House vote. Once investors fully price in the government reopening, sentiment should strengthen. As noted, politically manufactured turmoil rarely drags the economy into a genuine recession because neither party wants to own the fallout, making such moments buying opportunities.

With sentiment improving, investors should track the following five tech names that already display bullish charts, solid fundamentals and heavy call activity pointing to short-term upside.

Netflix (NFLX) has recovered from its post-earnings decline, with the 3-day moving average now above the 7- and 10-day lines, forming a constructive setup. Traders purchased 1,158, 1,423 and 1,749 out-of-the-money calls at the $1,135–$1,150 strikes expiring this Friday, signaling confidence in further gains. Two near-term catalysts include the 1-for-10 stock split next Monday, which typically boosts retail participation and volume, and the late-November release of the final season of Stranger Things, which could attract a wave of new subscribers.

Meta (META) shows a similar pattern. Although earnings were somewhat disappointing, its dominant social-media position and accelerating push into AI could turn the company into a major winner again. AI-enhanced social platforms also offer broader monetization avenues, including AR integration. Technically, the 3-day moving average is attempting to break above the 7- and 10-day levels. Options traders purchased multiple 4,000-plus contract blocks at the $640, $650 and $660 strikes expiring this Friday, reflecting strong upside expectations.

Tesla (TSLA) stands out after Elon Musk secured his trillion-dollar compensation package, giving him renewed freedom to focus on Robotaxi, humanoid robotics and broader AI integration in vehicles. Competitive pressure on Xiaomi is building, and the company’s reputation has stabilized as Musk’s relationship with Trump improves. Options activity is intense, with more than 10,000 contracts each at the $450, $455 and $470 calls expiring this Friday, almost double the at-the-money volume.

Shopify (SHOP) remains attractive as its partnership with OpenAI brings advanced AI tools to consumer shopping. The stock is sitting at key support from October 14, and a rebound from this zone could drive further upside. Traders bought 763 and 629 contracts of the $165 and $175 calls expiring Friday, roughly triple the at-the-money call activity.

TSMC (TSM) is a primary beneficiary of the AI boom as the leading advanced chip foundry and is preparing to raise prices to support margins. The recent pullback offers an appealing entry point, with shares bouncing off a key support level. Options traders purchased 4,458 contracts of the $300 call expiring this Friday, more than double the ATM volume, indicating expectations for a near-term rally.