Pure Trade Ideas
2025-12-28 06:31
Regime
Late cycle momentum environment with sector rotation
Bias
Selective bullish - favor materials, tech leaders, avoid laggards
Best Setups
Breakouts to new highs with volume (NVDA, XLB, Gold), momentum continuation plays
Avoid
Utilities showing weakness, traditional value traps without momentum
📈

Stock Ideas

4 ideas
NVDA
LONG
high 2-4 weeks 8% of portfolio
Strongest relative strength in tech, +1.02% while tech flat. Volume surge 138M vs avg 50M confirms institutional buying. Breaking above $190 resistance after 3-week consolidation
Catalyst: Q4 earnings runup, AI infrastructure spend continuing, potential guidance raise
Entry
$191+ on break above yesterday's high with volume
Target
$210 (prior 52-week high)
Stop
$185 (below consolidation low)
R:R
3:1
Invalidation: Break below $185 or tech sector broad weakness
XLF
SHORT
medium 3-6 weeks 5% of portfolio
Failed at 52-week high $55.89, now showing weakness. Banks vulnerable to yield curve flattening, end of rate hike cycle headwinds
Catalyst: Banking stress, loan loss provisions, net interest margin compression
Entry
$55.50 on break below $55.60 support
Target
$52.50
Stop
$56.20
R:R
4:1
Invalidation: Break above $56.20 or banking strength emerges
XLB
LONG
high 6-10 weeks 6% of portfolio
Materials breaking out to new 52-week highs at $46.43. Strong +0.59% move with volume confirmation. Commodity supercycle thesis intact
Catalyst: China reopening demand, infrastructure spending, supply constraints
Entry
$46.20+ on pullback to breakout level
Target
$50.00
Stop
$44.80
R:R
2.7:1
Invalidation: Break below $44.80 or commodity demand destruction
TSLA
SHORT
medium 4-8 weeks 4% of portfolio
Failed at $498 resistance, now breaking down -2.1% on massive volume 58M. Momentum clearly shifted bearish, lower highs pattern
Catalyst: Delivery concerns, competition intensifying, valuation concerns
Entry
$470 on break below current support
Target
$420
Stop
$485
R:R
3.3:1
Invalidation: Reclaim above $485 with conviction
🛢️

Commodity Ideas

2 ideas
Gold
LONG
high GLD ETF 2-3 months
Explosive +1.11% breakout to near ATH $4584. Dollar weakness, geopolitical tensions, central bank buying continuing
Entry
$455+ (GLD equivalent ~$455)
Target
$475 (new ATH)
Stop
$445
R:R
2:1
Key Levels: Resistance at $460, support at $450
Crude Oil
SHORT
medium USO ETF 6-8 weeks
Breaking down -2.76% near 52-week lows at $54.98. Demand destruction concerns, recession fears, inventory builds
Entry
$56 on any bounce
Target
$50
Stop
$60
R:R
1.5:1
Key Levels: Critical support at $55, resistance at $60

Crypto Ideas

3 ideas
BTC
LONG
medium 4-6 weeks 5% of portfolio
Stabilizing above $87K after recent weakness. Institutional adoption continuing, spot ETF inflows resuming
On-Chain Signal: Long-term holder accumulation continuing, exchange outflows positive
Entry
$88,000+ on break above resistance
Target
$95,000
Stop
$83,000
R:R
1.4:1
ZEC
LONG
high 3-6 weeks 3% of portfolio (high risk)
Massive +9.87% breakout, trending #1 on social. Privacy coins gaining attention, technical breakout from consolidation
On-Chain Signal: Increased transaction volume, developer activity rising
Entry
$520+ on momentum continuation
Target
$650
Stop
$480
R:R
3.25:1
DOT
LONG
medium 6-10 weeks 2% of portfolio
Strong +7.65% move, breaking out from oversold levels. Polkadot ecosystem development accelerating
On-Chain Signal: Parachain activity increasing, staking yields attractive
Entry
$1.92+ on pullback entry
Target
$2.50
Stop
$1.75
R:R
3.4:1
📊

Options Plays

2 plays
NVDA
high
Long Call | $195 | January 31, 2025
Leverage the momentum breakout, earnings catalyst approaching
Max Risk
Premium paid (~$8-10)
Max Reward
Unlimited above $205
Breakeven
$203-205
Ideal Scenario: NVDA breaks $200+ on earnings optimism
XLF
medium
Put Spread | Buy $55 Put / Sell $52 Put | February 21, 2025
Limited downside play on banking weakness, defined risk
Max Risk
Net debit ~$1.00
Max Reward
$2.00 (3:1 R:R)
Breakeven
$54.00
Ideal Scenario: XLF drops to $52 or below by expiration
⚖️

Pairs Trades

1 pairs
high 1:1 dollar weighted 8-12 weeks
LONG
XLB (Materials)
vs
SHORT
XLU (Utilities)
Materials breaking to new highs while Utilities stagnant. Cyclical vs Defensive rotation continuing
Entry Spread
XLB $46.11 / XLU $42.78 = 1.078
Target Spread
1.15
Stop Spread
1.05
🚫

Avoid These

🚫 META
Down -0.64% in weak tech, no momentum, regulatory overhang
The Trap: Looks cheap vs ATH but trend is broken
🚫 INTC
Dead money, no momentum despite slight uptick
The Trap: Value trap - structural issues remain
🚫 Any 'oversold' names
We don't catch falling knives in momentum trading
The Trap: RSI oversold looks tempting but trend is king