Public trading strategy
Jamie Dimon warns a massive crisis is coming — hedge your portfolio against an o
Thesis
When the most successful banker in the world warns of an impending crisis while corporate profits are at record highs, it usually means the market has become dangerously complacent. The massive AI rally has stretched stock valuations to dangerous levels, leaving the market highly vulnerable to a sudden drop. Shorting the main S&P 500 index fund is a defensive way to protect your portfolio and profit if the market finally takes Jamie Dimon's warning seriously.
Strategy approach
Build a mean-reversion strategy that enters short on the SPDR S&P 500 ETF (SPY) on the daily timeframe when the RSI(14) crosses below 70 (exiting overbought territory) and the price closes below the 10-day Simple Moving Average (SMA). Set a 3% stop loss and a 6% take profit target.
Markets and timeframes
SPY1D