Pure Trade Ideas
2026-02-05 06:58
Regime
Sector rotation in progress - Energy/Materials leading, Tech lagging
Bias
Neutral to slightly bearish - selective opportunities in commodity sectors
Best Setups
Energy breakouts, Semiconductor breakdowns, Commodity strength
Avoid
Large cap tech showing distribution, growth stocks under pressure
📈

Stock Ideas

5 ideas
XLE
LONG
high 4-8 weeks 3-5%
Breaking out to new 52-week highs at $52.83 vs high of $52.96. Energy leading all sectors today +2.2%. Oil services momentum building.
Catalyst: Oil price stability above $60, energy infrastructure spending, seasonal refinery demand
Entry
$52.85 on break above today's high
Target
$56.50
Stop
$51.20
R:R
2.2:1
Invalidation: Break below $51.00 or oil collapse below $58
XLB
LONG
medium 3-6 weeks 2-3%
Materials at new highs $51.89 vs $52.02. Outperforming market with +2.35% today. Industrial commodity strength.
Catalyst: Infrastructure spending, copper demand, housing recovery
Entry
$52.10 on new high break
Target
$55.00
Stop
$50.25
R:R
1.6:1
Invalidation: Break below $50.00 or manufacturing data collapse
AMD
SHORT
high 2-4 weeks 2-4%
Massive breakdown -17.3% on huge volume. Breaking major support levels. Relative weakness vs NVDA and sector.
Catalyst: Earnings disappointment, AI chip competition, margin pressure
Entry
$198.50 on any bounce to resistance
Target
$165.00
Stop
$215.00
R:R
2.0:1
Invalidation: Reclaim above $220 or sector rotation back to semis
ORCL
SHORT
medium 3-6 weeks 2-3%
Heavy selling -5.2% breaking below $150 support. Failed at highs, showing relative weakness vs tech.
Catalyst: Cloud competition intensifying, guidance concerns, valuation stretched
Entry
$145.00 on bounce to resistance
Target
$125.00
Stop
$158.00
R:R
1.5:1
Invalidation: Reclaim above $160 with volume
XLF
LONG
medium 6-10 weeks 2-4%
Financials showing relative strength +0.8% while tech weak. Near 52-week high of $56.52.
Catalyst: Rising rates environment, strong lending, regulatory clarity
Entry
$54.20 on pullback to support
Target
$58.00
Stop
$52.50
R:R
2.2:1
Invalidation: Break below $52.00 or rate cut expectations
🛢️

Commodity Ideas

2 ideas
Crude Oil
SHORT
medium USO ETF or CL Futures 3-6 weeks
Breaking down -1.9% below $64. Failed at resistance, showing weakness despite geopolitical tensions.
Entry
$63.50 on any bounce
Target
$58.00
Stop
$67.00
R:R
1.6:1
Key Levels: Support at $60, resistance at $67
Gold
SHORT
speculative GLD ETF 4-8 weeks
Failed at highs, showing weakness -0.26%. DXY strength and rate environment headwinds.
Entry
$4920 on bounce to resistance
Target
$4650
Stop
$5100
R:R
1.5:1
Key Levels: Major support at $4600, resistance at $5000

Crypto Ideas

3 ideas
BTC
SHORT
high 2-6 weeks 3-5%
Breaking major support at $70K. -7.6% today with massive volume. Failed at $126K highs, showing distribution.
On-Chain Signal: Large holder distribution, exchange inflows increasing
Entry
$69,500 on any bounce to resistance
Target
$58,000
Stop
$75,000
R:R
2.1:1
ETH
SHORT
high 2-6 weeks 2-4%
Even weaker than BTC -8.5%. Breaking below $2100 support with conviction. Relative weakness pattern.
On-Chain Signal: DeFi TVL declining, staking rewards pressured
Entry
$2050 on bounce to resistance
Target
$1650
Stop
$2250
R:R
2.0:1
HYPE
LONG
speculative 2-4 weeks 1-2%
One of few showing relative strength +5.7% weekly while market crashes. Low float, institutional backing.
On-Chain Signal: Low circulating supply, strong holder base
Entry
$33.00 on pullback
Target
$45.00
Stop
$28.00
R:R
2.4:1
📊

Options Plays

2 plays
AMD
high
Long Put | $180 | March 2026
Amplify the breakdown move with limited risk. High volatility environment.
Max Risk
Premium paid (~$8-12)
Max Reward
Unlimited to downside
Breakeven
$168-172
Ideal Scenario: Continued semiconductor weakness, stock to $150-160
XLE
medium
Long Call | $55 | April 2026
Leverage the energy breakout with defined risk. Sector momentum building.
Max Risk
Premium paid (~$2-3)
Max Reward
Unlimited upside
Breakeven
$57-58
Ideal Scenario: Energy sector continues outperformance, XLE to $60+
⚖️

Pairs Trades

2 pairs
high 1:1 dollar weighted 6-12 weeks
LONG
XLE
vs
SHORT
XLK
Energy breaking out while tech breaking down. Sector rotation in play. Relative performance diverging.
Entry Spread
XLE outperforming by 5% today
Target Spread
XLE outperforms by 15-20%
Stop Spread
If tech reclaims leadership
medium 1:1 dollar weighted 8-16 weeks
LONG
XLF
vs
SHORT
XLU
Rate environment favors financials over utilities. Growth vs defensive rotation.
Entry Spread
Current 25% outperformance YTD
Target Spread
35-40% outperformance
Stop Spread
If defensive rotation accelerates
🚫

Avoid These

🚫 META
Falling knife at -3.3%. Don't catch this breakdown until it finds support
The Trap: Looks 'cheap' after big drop but momentum is negative
🚫 NVDA
Breaking down -3.4% on massive volume. Wait for technical repair
The Trap: AI story intact but technicals are broken short-term
🚫 TSLA
Weak breakdown -3.8%. No momentum edge here
The Trap: Musk factor and EV narrative but price action is poor