Iran peace deal nearing and a rare buy signal just flashed — bet on the stock rally
The US and Iran are close to a 60-day ceasefire extension, which could end months of conflict. At the same time, market-timers have bailed on stocks at near-record levels — historically a signal that the market is about to climb higher, not lower.
Idea
A potential Iran ceasefire removes the biggest geopolitical risk hanging over the market. Asian stocks are already set to rise on the news, and Wall Street reversed losses yesterday when the truce reports hit. Meanwhile, a rare contrarian buy signal just flashed — investors pulled money out of stocks at near-unprecedented levels, which historically means the crowd has already sold and there's nobody left to push prices down. One of Wall Street's top strategists at Citadel says stocks are more likely to keep climbing than fall. Put it all together and the conditions are in place for a broad relief rally.