Crypto bleeding out while JPM unleashes $50B buyback — rotate into mega-bank saf
Thesis
While speculative assets like Bitcoin are getting crushed by rising rate hike fears and a strong U.S. dollar, big banks are set up to benefit. J.P. Morgan just announced a massive $50 billion stock buyback, showing extreme financial health and a willingness to support its share price. When retail investors panic over crypto and foreign currency weakness, they rotate their money into reliable, cash-rich companies. J.P. Morgan buying back its own stock provides a massive floor for the stock price, making it an ideal safe-haven trade.
Strategy approach
Build a rule-based strategy that enters long JPM on D1 when JPM is within 5% of its 20-day high and Bitcoin (BTCUSD) is down at least 2% over the prior 5 trading days. Exit if JPM drops below its 20-day simple moving average, with a 10% trailing stop.