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Is The Selloff Over?
Wall Street attempted to recover on Tuesday after a rather harrowing start to the week.
The (simple) question on everyone's mind was this: "Have we seen the worst of it?"
JPMorgan's Thomas Salopek asked just that in a new note. His answer, in a word, was "no."
The bank looked at a series of signals which historically indicate the bottom's in. According to that analysis, "the full set of ingredients of a market bottom" isn't yet present. Among other indicators, JPMorgan cited the slope of the
Thanks for calling as it is, H.
What more do Powell and Co need to see and hear to finally take to heart they’re being played. The crowd of complainers crying for a Fed rescue have had it easy for so long they can’t imagine giving up the trend following, vol selling, correlation-dispersion, etc., strategies that worked so well over the last several (if not ten+) years….Fed should stay away until there’s a risk to the financial system and/or the economy. That is, barring something unusual, the Fed should stick w/ the plan and cut rates 25bps a couple times in 2024. No Fed rescue period. Let the SPX drop 30% or more from its highs. Let’s find out who has ramped up leverage in irresponsible ways, and use them to re-educate market participants about “risk.”
+1
Fed doesn’t owe anyone a positive P&L.
I absolutely agree. Thanks for the well stated post.
I have read snippets from multiple strategists today; all seem to be saying the same thing….this is not over.
Which actually means yesterday was a bottom and it is time to buy. These people are the best contrarian indicator out there.