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MarketPulse

Alpha Intelligence
Saturday, January 03, 2026
06:34 EST
Regime 🟢

Risk On

2-4 weeks, sustainable into January earnings

S&P 500 just 87 points from 52-week highs at 6945; Russell 2000 surging +1.06%, small caps leading; VIX collapsed to 14.51 (-2.94%), near 52-week low of 13.38

75%
Confidence
^GSPC 6,858.47 +0.19%
^DJI 48,382.39 +0.66%
^IXIC 23,235.63 -0.03%
^RUT 2,508.22 +1.06%
^VIX 14.51 -2.94%
^FTSE 9,951.14 +0.20%
^N225 50,339.48 -0.37%
XLK 144.30 +0.23%
XLF 54.93 +0.29%
XLV 155.51 +0.46%
XLE 45.65 +2.10%
XLI 157.98 +1.84%

Alpha Ideas

Long IWM (Russell 2000) targeting 2600+
high conviction weeks
Small caps leading at 2508, only 87 points from highs, domestic focus benefits from strong dollar
Entry
Current levels around 2500-2510
Target
Target 2595 highs, stop 2450
Sizing
3-5% position
Pair Trade: Long XLI / Short XLY
medium conviction weeks
Industrials breaking out vs Consumer Discretionary breaking down - pure sector rotation play
Entry
XLI above 157, XLY below 118
Target
XLI 160 / XLY 115, stop if ratio reverses
Sizing
2-3% each side
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Index Analysis

SP500 bullish

Within 87 points of all-time highs with momentum intact, targeting 7000+ breakout

Support 6800, 6750
Resistance 6945, 7000
NASDAQ neutral

Lagging other indices, stuck 784 points below highs - needs tech leadership to resume

Support 23000, 22800
Resistance 24020, 24500
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Sector Rotation

Leadership: Energy +2.10%, Industrials +1.84%, Materials +1.70%, Utilities +1.15%

Laggards: Consumer Discretionary -0.89%, Communication Services -0.70%

Signal: Classic risk-on cyclical rotation - money flowing from defensives into reflation trades

Long XLI (Industrials) targeting 160

Rationale: Breaking out to new highs at 157.98, only $0.48 from 52-week high, infrastructure/rearmament themes

Risk: Interest rate spike could kill capex spending

Short XLY (Consumer Disc) below 118

Rationale: Breaking down from 119+ resistance, consumer under pressure, Amazon weakness

Risk: Oversold bounce possible near 115 support

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Stock Signals

INTC bullish

Monster +6.72% move on massive 93M volume, breaking above $39 resistance

Catalyst: Potential foundry deals, AI chip recovery narrative gaining traction

Risk/Reward: Excellent - targeting $44 highs, stop at $36

AMD bullish

+4.35% surge to $223, strong momentum above $214 breakout level

Catalyst: AI data center demand, catching up to NVDA rally

Risk/Reward: Good upside to $267 highs vs $214 support

TSLA bearish

Failed at $450, down -2.59% on heavy volume, losing momentum

Catalyst: Delivery disappointment risk, competition heating up

Risk/Reward: Short setup targeting $400, stop at $460

CRM bearish

Collapsing -4.26% to $254, breaking key $260 support level

Catalyst: Software multiple compression, growth concerns

Risk/Reward: Targeting $230 support zone, stop at $270

Crypto Alpha

Bitcoin

BTC at $89,942 consolidating just below $90K resistance, needs decisive break above for $95K+ run

Ethereum

ETH at $3,107 showing relative strength vs BTC, targeting $3,300-3,400 zone

Alt Rotation

XRP +8.23%, DOGE +11.49%, SUI +12.26% - meme/alt season still alive

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Contrarian Corner

The Consensus vs. The Counter

Consensus View
Analyzing market consensus...
Contrarian Case
Building contrarian thesis...
Trigger to Watch
Identifying confirmation signals...
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Risk Radar

Risk Probability Impact Hedge
VIX mean reversion spike MEDIUM 5-8% equity correction within days Buy VIX calls or reduce beta exposure
10Y yield breakout above 4.25% MEDIUM Tech selloff, rotation reversal Short duration, overweight value vs growth
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Weekly Watchlist

SPY
Watch for: Break above 685 (equivalent to S&P 6850)
Action: Add leveraged long exposure targeting 700
XLI
Watch for: Hold above 157 support on any pullback
Action: Add to position targeting 160-162 zone
INTC
Watch for: Volume confirmation above $40
Action: Aggressive long targeting $44 resistance
VIX
Watch for: Any spike above 18
Action: Reduce risk, hedge long positions
BTC-USD
Watch for: Clean break above $92,000
Action: Chase momentum toward $95K-100K zone