Big banks just got stress-test green light while panic grips tech — rotate into
Thesis
JPMorgan and Goldman just announced massive buybacks and dividend hikes after passing their stress tests with flying colors, giving them a fortress-like quality. Meanwhile, fear is spiking as tech stocks get dumped and the U.S. just conducted military strikes against Iran. When fear rises and tech sells off, institutional money typically rotates into safe-haven sectors — and well-capitalized banks returning cash to shareholders are a prime destination. The combination of strong fundamentals (stress test pass + capital returns) and a fearful market creates a classic flight-to-safety trade.
Strategy approach
Build a rule-based long strategy on JPM and GS using the D1 timeframe. Enter when the VIX closes above 20 (fear rising) and JPM or GS closes up on the day while QQQ closes down >1%. Exit after 21 trading days or if the stock breaks below its 50-day moving average.