Just Out From Evercore ISI: "Sell All Rallies Down To 1900"

Tyler Durden's picture




 

First JPM, then Citi, then UBS, then Gartman, and now, moments ago, Evercore ISI jumped on the "sell all rallies" bandwagon.

Sell All Rallies Down to 1900
 
China's ill-fated decision to prop up stocks and let their currency collapse is a Titanic error in judgement with broadly bearish cross asset implications for the rest of the world. With the macro backdrop more vulnerable today than at any time since the financial crisis, and the S&P 500 and NASDAQ still near all-time highs, we anticipate a downside move to 1900 on the S&P within the first two months of the year.

 

Tactically speaking the move to 1900 may not occur in a straight line as it did in August given seasonal factors and the binary shift in sentiment, and we would continue to aggressively sell any attempted rallies off of 1990.

 

Importantly, we reiterate our view that Crude and Energy remain structurally broken and possess significant downside from current levels which will only agitate and exacerbate the ongoing collapse in Emerging Markets, Currencies, Credit and the Curve, and raise the prospect of a deeper correction in developed markets.

 

Finally, we feel strongly that at least one of the beleaguered Commodity Currencies beginning with the letter "R"; Ruble, Renminbi, Rand, Real and or Riyal; are likely to be devalued before all is said and done, at which point we would likely become more constructive amidst the ensuing chaos.

 

 

So is this the moment when, as everyone jumps on the same side of the boat - the short one - one should do the opposite?

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Wed, 01/06/2016 - 14:00 | 7005831 thismarketisrigged
thismarketisrigged's picture

1900? did they mean 900?

Wed, 01/06/2016 - 14:01 | 7005833 kliguy38
kliguy38's picture

no they meant 1900 on the DOW

Wed, 01/06/2016 - 14:15 | 7005902 Four chan
Four chan's picture

what rallys?

Wed, 01/06/2016 - 14:22 | 7005946 InjectTheVenom
InjectTheVenom's picture

shares crash...hopes are dashed...people forget....forget they're hiding

Wed, 01/06/2016 - 14:34 | 7005990 Lost in translation
Lost in translation's picture

Oh man that's good.  Props!

Wed, 01/06/2016 - 15:49 | 7006457 JRobby
JRobby's picture

Evercore are shit swallowing psychopaths. Who cares what they say. Wall Street establishment species.

Wed, 01/06/2016 - 14:01 | 7005832 KnuckleDragger-X
KnuckleDragger-X's picture

1900 will be roadkill on the highway as we pass it by........

Wed, 01/06/2016 - 14:14 | 7005892 NoVa
NoVa's picture

MAJOR support at 1960.  if a close below 1960, then a freefall/off the cliff.

 

long SPXU TLT

NoVa

 

Wed, 01/06/2016 - 14:30 | 7005979 El Hosel
El Hosel's picture

SPY is up 1400 for the Cycle, the 7 year QE bullshit cycle. That makes this stock bubble twice as big as the last two...

There is no MAJOR support, there was never any base building. Fairy dust Rally, Fairy dust support. All your buying is hope for moar.

Wed, 01/06/2016 - 15:56 | 7006481 Vlad the Inhaler
Vlad the Inhaler's picture

I don't see a damn thing between here and testing the Sept lows.

Wed, 01/06/2016 - 14:02 | 7005838 edifice
edifice's picture

You should post the USD/CNH chart. Many LOLs.

Wed, 01/06/2016 - 14:06 | 7005854 Dr. Engali
Dr. Engali's picture

Personally I'm buying today for the dead cat bounce up to the eventual fail at S&P 2050. 

Wed, 01/06/2016 - 14:46 | 7006054 sun tzu
sun tzu's picture

You have been conditioned

Wed, 01/06/2016 - 14:08 | 7005866 Uncle Sugar
Uncle Sugar's picture

Sell until 3:30pm

Wed, 01/06/2016 - 14:09 | 7005872 undertow1141
undertow1141's picture

Or is it sell hard when the PPT pushes at 3:30?

Wed, 01/06/2016 - 14:13 | 7005888 curbyourrisk
curbyourrisk's picture

Targets:

 

DOW- 10,500

Nasdaq - 1,050

S&P - 985

Wed, 01/06/2016 - 14:14 | 7005891 Glass Seagull
Glass Seagull's picture

 

 

Big bull flag maybe.

 

Don't get squeezed, again.

Wed, 01/06/2016 - 14:14 | 7005893 Fish Gone Bad
Fish Gone Bad's picture

S&P was looking bad on 12/31/2015. Glad to see they are up on their game.

Wed, 01/06/2016 - 14:15 | 7005905 vote_libertaria...
vote_libertarian_party's picture

1900??? That is so cute?

Wed, 01/06/2016 - 14:20 | 7005932 El Hosel
El Hosel's picture

.... Yes, and sell silver. Even if you don't have any silver go ahead and sell the shit out of it.

Wed, 01/06/2016 - 16:28 | 7006681 Jstanley011
Jstanley011's picture

That's right. Buy high and sell low.

Wed, 01/06/2016 - 20:59 | 7008118 mister33
mister33's picture

Good idea... I'm thinking the market manipulators feel a little defeated today and are going to compensate tomorrow morning

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