The key levels 'froth assets' need to hold

[Coffee pour]
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BofA Securities is looking for an unwind in frothy assets, but expects key levels to hold.

Those levels are:

* State Street Technology Select Sector SPDR ETF (XLK [https://seekingalpha.com/symbol/XLK]) = $133
* Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) = 58K
* Gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) = $4,550/oz

Strategist Michael Hartnett said the "painful price collapse" of Wall Street longs like the Magnificent 7 (AAPL [https://seekingalpha.com/symbol/AAPL]) (AMZN [https://seekingalpha.com/symbol/AMZN]) (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) (NVDA [https://seekingalpha.com/symbol/NVDA]) (MSFT [https://seekingalpha.com/symbol/MSFT]) (META [https://seekingalpha.com/symbol/META]) (TSLA [https://seekingalpha.com/symbol/TSLA]), crypto (IBIT [https://seekingalpha.com/symbol/IBIT]) (ETHA [https://seekingalpha.com/symbol/ETHA]), precious metals (GLD [https://seekingalpha.com/symbol/GLD]) (SLV [https://seekingalpha.com/symbol/SLV]) and private credit (BIZD [https://seekingalpha.com/symbol/BIZD]) (PRIV [https://seekingalpha.com/symbol/PRIV]) vs. Wall Street's shorts like small caps (IWM [https://seekingalpha.com/symbol/IWM]), staples (XLP [https://seekingalpha.com/symbol/XLP]) and energy (XLE [https://seekingalpha.com/symbol/XLE]) was driven by a combination of "peak positioning, peak liquidity (less rate cuts, more rate hikes) and peak politics (low approval for equity-friendly Trump)."

But absent a systemic-event surge in the U.S. dollar index (DXY [https://seekingalpha.com/symbol/DXY]) to 100 and an associated "meltdown" in Treasury yields (TBT [https://seekingalpha.com/symbol/TBT]) (TLT [https://seekingalpha.com/symbol/TLT]) (SHY [https://seekingalpha.com/symbol/SHY]) (IEF [https://seekingalpha.com/symbol/IEF]) (IEI [https://seekingalpha.com/symbol/IEI]), this is a "big, healthy, overdue unwind in 'froth,'" Hartnett added.

[Wall Street longs vs. Wall Street shorts]
BofA

MORE ON STATE STREET TECHNOLOGY SELECT SECTOR SPDR ETF, BITCOIN USD, ETC.

* Whale's Digital Asset View: Why Bitcoin Sells Off While Gold Stabilizes [https://seekingalpha.com/article/4868535-whale-digital-asset-view-bitcoin-sells-off-gold-stabilizes]
* Hard Assets Weekly: Incredibly, Gold Has Become More Volatile Than This Asset [https://seekingalpha.com/article/4868282-hard-assets-weekly-incredibly-gold-has-become-more-volatile-than-this-asset]
* Precious Metals: Bullish Thesis Warrants Buying The Dip [https://seekingalpha.com/article/4868275-precious-metals-bullish-thesis-warrants-buying-dip]
* Here’s what Robinhood said about crypto in its earnings call [https://seekingalpha.com/news/4550028-here-s-what-robinhood-said-about-crypto-in-its-earnings-call]
* Stocks are struggling to grind higher in 2026, SA analyst notes that cracks are emerging [https://seekingalpha.com/news/4549715-stocks-are-struggling-to-grind-higher-in-2026-sa-analyst-notes-that-cracks-are-emerging]