Tuesday, January 13, 2026

Affirm and Block Could Be the BIG Winners of Trump’s Credit Card Regulation

Smart money is already positioning
 
   
     
Iran Tariff Bomb?
 
 
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.

Trump's "effective immediately" 25% tariff on countries doing business with Iran just nuked market liquidity and created massive opportunities in oil, defense and supply chain reshoring — here's how to profit from the chaos.

Come join me as we dive in and see what’s moving! 

Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day. 
 
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Affirm and Block Could Become the BIG Winners of Trump’s Credit Card Regulation
 
Sometimes the best trading opportunities come from understanding the unintended consequences of political proposals. 

While everyone is focused on how Trump's credit card rate cap proposal might hurt traditional lenders, I'm seeing a completely different angle that could create massive winners in an unexpected corner of the market.

To really see the full picture, you have to go back to where this all started — 1978, the year of Space Invaders, Greece and a quiet Supreme Court case called Marquette National Bank versus First of Omaha. 

That ruling changed everything. It allowed banks to charge credit card customers whatever interest rate was legal in the bank's home state, not the customer's. That single decision triggered the modern era of sky‑high credit card APRs and led to banks clustering in states with the loosest usury laws. 

The industry we know today was built on that foundation, which is exactly why a sudden regulatory cap now would be seismic.

And here's what most people are missing: When you eliminate the ability for credit card companies to charge high‑risk borrowers 30% interest rates, those companies face a simple choice. 

They can't make money at 10% rates on borrowers with poor credit scores — the default rates would destroy their economics. So what will they do? They’re going to cancel cards or refuse to extend credit to higher‑risk borrowers.

But those consumers don't disappear. They still need credit, they still need to make purchases and they still need a way to bridge the gap between income and expenses. 

So who fills that void?
The Buy Now Pay Later Advantage

Buy-now-pay-later companies (BNPL) like Affirm (AFRM) and Block (SQ), which owns Cash App, are positioned to capture this massive displacement of customers — if this 10% cap even comes to pass, and that’s a very big IF. 

But let’s say it does…

These companies operate under a fundamentally different model — they offer installment loans at the point of sale with no revolving credit and no compound interest.

This structural difference matters enormously in a regulated environment. While traditional credit cards get squeezed by rate caps, BNPL companies can structure their offerings with merchant fees, late fees and other charges that may not fall under simple interest rate restrictions. 

They occupy a regulatory sweet spot that gives them flexibility traditional card issuers lack.

If banks start tightening their lending standards because they can't make money at 10%, consumers are going to flock to these alternative BNPL options. 

And we're talking about a huge population. If access tightens the way it likely will, anyone with a credit score under 750 could struggle to get approved for a traditional card at all. 

That is a tidal wave of consumers being pushed directly into BNPL ecosystems.


The Market Is Already Signaling the Shift

The market often speaks before the headlines catch up, and this is one of those moments. AFRM was the only stock in the entire financial sector that finished in the green after Trump's rate cap proposal hit. 

While lenders, banks and even payment processors took a hit, AFRM climbed.

This is not random noise — this is capital flowing toward the future winners. The market is effectively saying what everyone else has not processed yet: If banks pull back on issuing credit, BNPL companies are the natural outlet for displaced borrowers. 

SQ, through Cash App, stands to benefit as well with its rapidly expanding lending programs and a user base made up of exactly the consumers who will feel the tightening first.

And here’s the kicker: This shift does not require the proposal to pass. The conversation alone has already put lenders on notice. Banks hate uncertainty, so they will tighten standards preemptively. 

That creates a multi‑year tailwind for AFRM, SQ and every BNPL player positioned at the intersection of consumer spending and accessible credit.

Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!

Morning Monster Is Starting NOW!
I’m also live at 5 p.m. ET on Tuesdays for “30 Minutes of Awesome” — bring your ticker and I’ll analyze it in real time!

And be sure to hit that Subscribe button on my YouTube page!
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1 Strange Trade Would Have Doubled A Stake 31 Times in 2025 Alone…
 
 
And according to two former hedge fund traders, this special option could present more opportunities in 2026.
 
 
Would you like to get all the details?
 
 
Yes! Show Me This Special Trade
We develop strategies to the best of our ability, but we cannot guarantee a future return. There is always a risk of loss when trading. Past performance is not indicative of future results. The results shown are from a 237-trade backtest from 1/1/20 - 1/1/26. The result was a 70% win rate, 40% average return (winners and losers), with a 7-day hold time.
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Today’s Daily Chart Setup: Genesco (GCO)  
 
 
This idea came directly from my Daily Chart Setup that automatically signals potential plays. 
 
• GCO is a new potential entry. Target: 38.66 Stop below: 20.92
• GCO has a historical win rate of 80.0%
• GCO has a profit factor of 1.69
• GCO trades last 41 trading days on average over 35 trades since 1968.

See the secret behind these signals here!  

This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Always remember that past performance is not indicative of future results.

How the Daily Chart Setup Works

Here’s a more detailed description of how the pattern triggers:

        1. The price breaks upward through the orange Market         Roadmap line. 

        2. Then the price goes up and down while staying above the         line. Eventually, it comes down to touch the line again — this         could take days, weeks or even months. 

        3. Once it touches the line and starts moving back up, that         signals an entry. 

I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years!

You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places!
Jeffry Turnmire
Jeffry Turnmire Trading

I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday!

Please check out my channel and hit that Subscribe button!

I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.

I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me. 

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 
   
 
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