Bitcoin crashes & tech fear spikes — hide out in booming small caps
Thesis
High inflation and fear are crushing the market's highest-flyers, with the tech-heavy Nasdaq dropping and Bitcoin plummeting to $58K. When the most speculative assets sell off violently, institutional money often seeks safety in small-cap stocks, which are having their best first half of the year since 1991. By connecting the panic in big tech and crypto to the quiet strength in small caps, this trade bets that the current market fear will accelerate the rotation away from mega-cap tech into smaller, domestic companies.
Strategy approach
Build a rule-based strategy that enters long IWM on D1 when QQQ drops >2% and BTC-USD drops >5% on the same session. Use a 14-day RSI below 30 as an additional entry filter on IWM. Exit after a 30-day hold or a 4% trailing stop.