A recession is bullish because it will bring down inflation. Lower inflation will lead to an end in rate hikes. The market is forward looking, we can be in a recession and pump to the moon. So long as their is a clear pathway out of the recession, the market will pump during the recession.
Even if you disagree, this is the mood of the market. Bearish news that brings down inflation has pumped the market on multiple occasions. Usually this happens the day after a large panic dump. I believe the market will realize the bullishness of the impending recession at market open. Futures are already green.
Today and Friday will be an extremely powerful bullish rally. Not only because this inflation crushing recession— bank earnings are going to light the fuse to the moon.
JPM and mega banks have received billions in new deposits. JPM especially has profited wildly from the banking crisis, yet their stock is DOWN. JPM’s ER will quell these fears that it was harmed from the crisis— a crisis that has already been canceled.
How can the market possibly turn bearish when there is so much amazing news coming out? Inflation will be finally be killed, rate hikes will end. This has been the plan for 2 years, it’s long been priced in, this the most anticipated recession of the decade.
JPM call position: https://imgur.com/gallery/4PwuCh8
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