Market Prep: The "Amerizuela" Narrative and Why the Market is Mispricing Institutional Risk
Top GEX Accumulation
Hello Traders,
As we enter the second week of January 2026, the “Sell America” trade is no longer a fringe theory—it is becoming the dominant institutional narrative. The weekend’s escalation between the White House and the Federal Reserve has moved the goalposts for global macro strategy.
The Powell Subpoenas: Pretext vs. Reality
The Department of Justice’s decision to serve grand jury subpoenas to Fed Chair Jerome Powell marks an unprecedented breach of central bank independence. While the official DOJ line focuses on “criminal mismanagement” of the Fed’s multi-billion dollar building renovations, Powell’s own Sunday night video statement was a rare, blistering rebuttal. He framed the investigation as a “pretext” for political intimidation following his refusal to implement the drastic, rapid rate cuts demanded by the administration.
This isn’t just a legal battle; it’s a structural shift. We are witnessing the “normalization” of executive influence over monetary policy—a hallmark of emerging markets, not a global reserve currency issuer.
The Rise of “Amerizuela”
The market is currently underpricing the long-term risk of this regime change. If the Fed becomes an arm of the executive branch, we face a future of:
Target Drift: A “compliant” Fed likely allows inflation to settle comfortably above 2% to accommodate fiscal expansion.
Institutional Erosion: Capital flight as global investors seek jurisdictions with more predictable, independent rule-of-law.
Fiscal Dominance: With a 50% requested increase in the defense budget and ongoing tensions in Venezuela and Greenland, the need for a “printing press” to fund ballooning debt is higher than ever.
Strategy: 2026 High-Conviction Plays
In the short term, markets may rally on the hope of lower rates. Tech and small-caps ($IWM) will likely “fly” as liquidity is forced into the system. However, once the “Amerizuela” reality sets in, the rotation into hard assets will accelerate.
Hard Reserves: Gold is already testing $4,600 and Silver is nearing $85. These are no longer just hedges; they are becoming the primary alternative to a devaluing USD. Silver abd silver miners are up a great deal since we posted charts for you. Copper is flying and our trade setups from our weekly commodities report COPX 0.00%↑ SCCO 0.00%↑ are hitting our targets.
The Digital Reserve: Bitcoin’s can hit $150k this year as people lose trust in government and Bitcoin’s role is a sovereign, non-political asset.
Defense & Commodities: Given the aggressive foreign policy shifts and resource-security focus (Rare Earths in Greenland, Oil in Venezuela), these sectors remain the ultimate “conviction” pockets for 2026.
Now let’s take a look at which stocks are showing increasing GEX accumulation, as this can help us identify where momentum is starting to build.
See our today’s trades and top picks from our scanner + Delta earnings analysis.
