QCP: The market is waiting for clarity on the extent of the September rate cut

QCP Capital said the equal-weighted S&P 500 hit a record high as bullish momentum expanded beyond the seven major indices. Small-cap stocks have outperformed large-cap stocks in two of the past three rate cuts. And the correlation between cryptocurrencies and small-cap stocks is growing. The BTC spot ETF has seen strong inflows for 12 consecutive days, while the ETH spot ETF has seen outflows for eight consecutive days. BTC's dominance in the options market reflects the macro-driven nature of the rate cut. On the options trading desk, we see moderate bullish spread buying. These signals indicate cautious optimism, and no major volatility is expected this week as the market awaits clarity on the extent of the September rate cut.