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MarketPulse

Alpha Intelligence
Friday, February 20, 2026
06:57 EST
Regime 🟡

Transitional

2-4 weeks as markets digest rate policy and earnings

SPX -0.28% but only 2% from ATH at 7002; VIX modest rise to 20.23 (still below 25); Russell 2000 +0.24% showing rotation to small caps

70%
Confidence
^GSPC 6,861.89 -0.28%
^DJI 49,395.16 -0.54%
^IXIC 22,682.73 -0.31%
^RUT 2,665.09 +0.24%
^VIX 20.23 +3.11%
^FTSE 10,627.04 -0.55%
^N225 56,825.70 -1.12%
XLK 140.21 -0.50%
XLF 52.15 -0.84%
XLV 157.26 -0.26%
XLE 55.18 +0.73%
XLI 176.34 +0.74%

Alpha Ideas

Long AMD above 205 breakout
high conviction weeks
Semiconductor cycle turning, AI infrastructure demand, relative strength vs peers
Entry
205+ breakout with volume confirmation
Target
Target 240 (+17%), stop 195 (-5%)
Sizing
3-5% position
Long XLI/Short XLK pair trade
medium conviction months
Industrial renaissance vs tech multiple compression in higher rate environment
Entry
Current levels, XLI 176.34 / XLK 140.21
Target
Close when ratio reverses momentum
Sizing
Market neutral 5% each side
Long Bitcoin 68K+ breakout
medium conviction weeks
Institutional adoption, potential strategic reserve momentum building
Entry
Above 68,500 with volume
Target
Target 78K-80K resistance, stop 64K
Sizing
2-3% allocation
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Index Analysis

SP500 neutral-bullish

Healthy pullback from highs, but still in uptrend channel with strong support base

Support 6800, 6750
Resistance 7002, 7100
NASDAQ neutral

Tech showing some fatigue but 5.7% from ATH suggests consolidation not breakdown

Support 22500, 22000
Resistance 24020, 24500
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Sector Rotation

Leadership: Energy (+0.73%), Industrials (+0.74%), Utilities (+1.10%)

Laggards: Technology (-0.50%), Financials (-0.84%), Consumer Discretionary (-0.67%)

Signal: Classic risk-off rotation into defensives and cyclicals, away from growth

Long XLI (Industrials) / Short XLK (Tech)

Rationale: Industrials showing momentum breakout potential near 177.76 highs while tech consolidates

Risk: Fed policy shift could reverse this rotation quickly

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Stock Signals

AMD bullish

Strong +1.62% move on high volume (25M), showing relative strength vs tech peers

Catalyst: AI chip demand cycle and potential data center buildout acceleration

Risk/Reward: Good - 203.37 with room to 267.08 ATH (31% upside) vs 76.48 low

META watch

Small +0.24% gain while peers weak, but 644.78 vs 796.25 high shows 23% gap

Catalyst: AI monetization, VR/AR progress, potential Trump administration benefits

Risk/Reward: Asymmetric - strong support, massive upside if momentum returns

INTC bearish

-1.85% on massive volume (72M), breaking down from consolidation

Catalyst: Continued market share loss, foundry struggles, competitive pressure

Risk/Reward: Poor - still 152% above 17.67 low despite recent weakness

Crypto Alpha

Bitcoin

BTC 67,841 (+1.04%) showing momentum above 66K support - target 75K-80K resistance zone

Ethereum

ETH 1,958 (-1.24%) lagging BTC shows altcoin weakness - wait for 2,100+ breakout

Alt Rotation

SOL +1.51% leading major alts, HYPE +2.14% in DeFi - momentum in infrastructure tokens

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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
Fed hawkish pivot on inflation concerns MEDIUM 10-15% equity correction, 2000+ point SPX drop Long VIX calls, short duration bonds, defensive sectors
Tech earnings disappointment cascade MEDIUM 20%+ NASDAQ correction, growth stock carnage Short QQQ, long value vs growth pairs
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Weekly Watchlist

AMD
Watch for: Break above 205 with volume >30M
Action: Buy momentum with 240 target
XLI
Watch for: Close above 177.76 ATH resistance
Action: Add to industrial overweight position
BTC-USD
Watch for: Sustained break of 68,500
Action: Initiate crypto momentum position
INTC
Watch for: Break below 42 support
Action: Consider short position or put spreads
SPX
Watch for: Break below 6800 support zone
Action: Reduce beta, add hedges, pivot defensive