"Sell Rips": Hartnett Says 3Bs Saved The Market, But Now It's All Up To The 3Cs

After his credibility was shaken by badly underestimating the severity of the impact of Liberation Day, BofA's CIO Michael Hartnett stuck his neck out and in the days immediately following April 2, issued the following market matrix reaction function which has largely been borne out from a threshold standpoint.

• SPX 5400: nibble at weak dollar plays (EM) &“rate sensitives” (REITs); 
• SPX 5100-5200: buy “policy pivot” plays (Fed cut/US tax cut/EU & Asia easing plays, e.g. US small cap/retail/homebuilders, EU cyclicals, Asia tech); 
• if recession, wait for SPX 4800-5000 to splurge all-in on risk once “Trump put” triggered by low 40-45 approval rating & higher unemployment (claims 300k).