Public trading strategy
Crypto market in 'extreme fear' while mega-banks return billions — long JPMorgan
Thesis
Bitcoin is crashing to 21-month lows, signaling 'extreme fear' as speculative assets get punished by high inflation and a rough macro environment. However, the real economy is proving much more resilient — all 32 large banks just passed the Federal Reserve's strict stress test, allowing giants like JPMorgan and Goldman Sachs to launch massive $50 billion buybacks. With a Fed official simultaneously noting a 'glimmer of hope' on inflation, money is likely to rotate out of crashing crypto and into the relative safety and yield of major bank stocks.
Strategy approach
Build a rule-based strategy that enters long JPM on D1 when BTC drops below its 120-day low and JPM closes >2% above its 20-day moving average. Exit after a 30-day max hold or an 8% trailing stop.