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MarketPulse

Alpha Intelligence
Friday, December 26, 2025
06:32 EST
Regime 🟢

Risk On

2-4 weeks into January, seasonality supports year-end rally continuation

S&P 500 at 6932 just 5 points from 52-week high of 6937; VIX at 13.47 shows complacency, down from previous 14.0; Financials (XLF) leading at +0.54%, hitting new highs at 55.73

85%
Confidence
^GSPC 6,932.05 +0.32%
^DJI 48,731.16 +0.60%
^IXIC 23,613.31 +0.22%
^RUT 2,548.08 +0.27%
^VIX 13.47 0.00%
^FTSE 9,870.68 -0.19%
^N225 50,679.84 +0.54%
XLK 146.30 +0.24%
XLF 55.73 +0.54%
XLV 155.80 +0.52%
XLE 44.37 -0.29%
XLI 157.50 +0.32%

Alpha Ideas

Long Financials basket (JPM, BAC, WFC)
high conviction weeks to months
XLF breaking to new highs, rate environment stabilizing, loan growth improving
Entry
On any 2% pullback in XLF from current 55.73 levels
Target
Target 62 on XLF, stop below 52
Sizing
3-5% portfolio allocation
Bitcoin momentum trade
medium conviction weeks
BTC showing institutional accumulation, breaking 90K targets 100K psychological level
Entry
Above 90K on volume
Target
Target 95K, stop below 85K
Sizing
2-3% allocation
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Index Analysis

SP500 bullish

Within 0.08% of all-time highs with momentum intact, breakout above 6940 targets 7000+

Support 6900, 6850
Resistance 6950, 7000
NASDAQ neutral

Lagging other indices, needs to break 24020 high to confirm tech leadership

Support 23400, 23200
Resistance 24020, 24300
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Sector Rotation

Leadership: Financials, Consumer Staples, Healthcare, Communication Services

Laggards: Energy, Technology

Signal: Money flowing into cyclicals and defensive growth, away from pure tech momentum

Long XLF / Short XLK

Rationale: Financials hitting new highs with rate environment stabilizing, tech showing relative weakness

Risk: Fed pivot or tech earnings surprise could reverse this trade

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Stock Signals

ORCL bullish

Oracle +1.10% breakout momentum, cloud infrastructure play catching up to peers

Catalyst: Q3 earnings in January, cloud acceleration narrative

Risk/Reward: Strong relative strength vs tech peers, 200+ resistance becomes support

CRM bullish

Salesforce +0.69% showing renewed strength after consolidation near 265

Catalyst: AI integration story gaining traction, enterprise spending recovery

Risk/Reward: Breaking above 270 targets 300, stop below 250

INTC bearish

Intel -0.52% continues relative weakness, can't hold 36 level

Catalyst: Foundry struggles, competitive pressure from TSMC/AMD

Risk/Reward: Break below 35 targets 32, any bounce to 38 is short opportunity

Crypto Alpha

Bitcoin

Bitcoin at 89K showing momentum +1.51%, targeting 95K resistance, support at 85K

Ethereum

Ethereum at 2974 lagging BTC, needs 3100 break for momentum confirmation

Alt Rotation

SOL showing strength at 123, layer-1 rotation continuing

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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% market correction if VIX spikes above 20 VIX calls or reduce position size before year-end
Tech sector rotation acceleration MEDIUM NASDAQ could underperform S&P by 5%+ Rotate from growth to value/cyclicals
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Weekly Watchlist

SPY
Watch for: Break above 694 (all-time high equivalent)
Action: Add long exposure targeting 700+
XLF
Watch for: Any pullback to 54 support
Action: Add to financials position, strong momentum continuation
QQQ
Watch for: Break above 485 (equivalent to NASDAQ 24020)
Action: Tech breakout play becomes viable again
INTC
Watch for: Break below 35 support
Action: Short opportunity targeting 32
BTC-USD
Watch for: Clean break above 90,000
Action: Momentum trade targeting 95K-100K