Tech crash meets record bank buybacks — rotate into JPMorgan and Goldman Sachs
Thesis
The combination of a broad tech sell-off and crashing crypto prices with the announcement of massive bank buybacks highlights a major sector rotation. When investors flee high-risk tech and crypto assets, they typically look for fundamental safety. The Fed's stress test results proving all 32 large banks are safe provides the ultimate confidence booster. Connecting the panic in tech and crypto markets directly to JPMorgan's $50 billion buyback authorization, it is clear that capital is likely rotating out of speculative growth and into fundamentally strong financial institutions that are actively returning cash to shareholders.
Strategy approach
Build a rule-based relative-strength strategy on D1 timeframe entering long JPM and GS when QQQ drops >1.5% on the same day JPM or GS closes positive. Exit if JPM or GS closes below its 20-day moving average, or after a 30-day max hold.