JPM: "Use Any Bounces As Selling Opportunities"

Tyler Durden's picture


First it was JPM's Croatian quant "Gandalf", Marko Kolanovic, who promptly became the nemesis of every 17-year-old upward momentum-chasing hedge fund manager after accurately calling every market move, especially selloff, ahead of time with uncanny precision.

Now, another Croatian JPMorganite, equity strategist Mislav Matejka, will be the recipient of permabull ire with his latest call which, while a rehash of his most recent call that "equities are not attractively priced any more", will likely sour today's market sentiment and attempts by algos to ignite upward momentum and forget, if only for a moment, the perfect storm brewing in China.

From JPM's Mislav Matejka:

Our view is that the risk-reward for equities has worsened materially. In contrast to the past 7 years, when we advocated using the dips as buying opportunities, we believe the regime has transitioned to one of selling any rally. Yes, stocks had a rough time most recently, and some of the tactical indicators, such as Bull-Bear at -16 which is at the bottom of its trading range, argue for a short-term respite. Clearly, equities are unlikely to keep falling in a straight line, with periodic rebounds likely. However, we believe that one should be using any bounces as selling opportunities.


We fear that the incoming Q4 reporting season won’t be able to provide much reassurance for stocks. As was the case for a while now, consensus expectations have been managed aggressively into the results. The hurdle rate for Q4 S&P500 EPS has fallen from +5%yoy a few months back to -4%yoy currently. If this were to materialise, it would be the weakest quarter for EPS delivery so far in  the upcycle.

Suddenly we miss former JPM-er Tom Lee's soothing voice telling us that all is well in the world if one just ignore everything that is non-well, and that every dip should be bought, preferably on margin.

Meanwhile, JPM's Croatian "duo of doom" is quickly emerging as the most hated "messengers" for all those hedge funds who after a terrible 2015, have started 2016 just as badly if not worse.

Marko Kolanovic and Mislav Matejka

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Mon, 01/11/2016 - 10:32 | 7028943 db51
db51's picture

Hang em high

Mon, 01/11/2016 - 10:35 | 7028956 DeadFred
DeadFred's picture

We TRUST the folk at JPM!

Mon, 01/11/2016 - 10:42 | 7028979 Newsboy
Newsboy's picture

Head and Shoulders Top

Majority Always Wrong


Mon, 01/11/2016 - 10:45 | 7028989 DeadFred
DeadFred's picture

When it breaks the neckline we'll know. Until then we guess.

Mon, 01/11/2016 - 10:53 | 7029008 SuperRay
SuperRay's picture

Translation: All our shorts are in place

Mon, 01/11/2016 - 10:55 | 7029017 the phantom
the phantom's picture

If JPM is saying "sell", then it means they are buying??  DIsinformation from TBTF is confusing.

Mon, 01/11/2016 - 11:10 | 7029076 RaceToTheBottom
RaceToTheBottom's picture

This two doom'sters will not be there next year.

Hopefully it will be by their choice...

Mon, 01/11/2016 - 11:47 | 7029279 new game
new game's picture

an oil soaked cat still bounces...

Mon, 01/11/2016 - 10:36 | 7028961 BlueStreet
BlueStreet's picture

Looks like another great day for the bears. VIX gets slammed (and re-loaded) and market barely budges. 

Mon, 01/11/2016 - 10:56 | 7029022 BullyBearish
BullyBearish's picture

Love it...the wonderful essence of ZH:

"Suddenly we miss former JPM-er Tom Lee's soothing voice telling us that all is well in the world if one just ignore everything that is non-well, and that every dip should be bought, preferably on margin."

Mon, 01/11/2016 - 10:33 | 7028947 TAALR Swift
TAALR Swift's picture

JPM: "Use a rise as an opportunity to unload"

Mon, 01/11/2016 - 10:34 | 7028951 Kirk2NCC1701
Kirk2NCC1701's picture

Most of us can relate to that.


Mon, 01/11/2016 - 10:49 | 7028999 TeamDepends
TeamDepends's picture

Our Chinese financial advisor, Poon Ho Man, has been strongly urging that for weeks.

Mon, 01/11/2016 - 10:34 | 7028950 LawsofPhysics
LawsofPhysics's picture

Already did. Now jump you fuckers!!!

Mon, 01/11/2016 - 10:34 | 7028954 Collapsed_Elast...
Collapsed_Elastic_Pants's picture


Mon, 01/11/2016 - 10:44 | 7028986 PR Guy
PR Guy's picture



BTFI (intervention)!

Mon, 01/11/2016 - 10:35 | 7028957 ebworthen
ebworthen's picture

7-year fix might be in; lots of 401K/Pension/CALPERS chips to clear off the green felt.

Mon, 01/11/2016 - 10:35 | 7028958 Grandad Grumps
Grandad Grumps's picture

I was talking to my near 90-year old mother yesterday. She was wondering what to do with the money she has had in high-yield bond funds and in equity funds. She had been yield seeking, but now all she wants to do is save principal.

If my mother is any indication, it is filtering through to mainstream very quickly.

This is more opportunity for the banks to buy productive and valuable assets from the people using their infintite money printing machine. Why would banks ever care about price when they can just manufacture more money from nothing?

Mon, 01/11/2016 - 11:01 | 7029052 Kayman
Kayman's picture


And the corollary to that is:  "why should productive people work hard to earn more than it takes to exist when in an instant the money changers can conjure up more money than you could save in a lifetime."

These c--ksuckers that control money are too smart by half. Sow the wind, reap the whirlwind.

Mon, 01/11/2016 - 12:51 | 7029737 Grandad Grumps
Grandad Grumps's picture

We are just travelers through this world (something the Freemasons adopted as a label for themselves, but it applies to all of us and especially those of us seeking the truth... all truth). We are intended to go through fire, be reborn and leave. All of the worldly B/S is just that ... and the grand controllers of the world spend so much effort deceiving people that unimportant crap is of supreme importance.

If people have not read the gospel according to Thomas, I suggest that you do so.

Mon, 01/11/2016 - 16:10 | 7031080 Kefeer
Kefeer's picture

I suggest repenting and believe on the Lord Jesus, for He said that NO ONE will enter heaven except through Him.  Gospel of Thomas - Tom-foolery!

Mon, 01/11/2016 - 11:47 | 7029283 BarkingCat
BarkingCat's picture


Why would banks ever care about price when they can just manufacture more money from nothing?



Why would they bother with buying troublesome assets when they can manufacture money from nothing????

Mon, 01/11/2016 - 12:45 | 7029687 Grandad Grumps
Grandad Grumps's picture

Because ultimately assets have value (utility) and the money has none.

Money is not value. People treat money as a store of potential value that they can use to buy things that have actual value. If money ceases to be perceived as a store of value, then one would be better off holding the things that have actual value. (I am not a gold bug because in today's world gold has little utility, and hence little value. It is simply an asset priced in excess of its usefulness to us.)

The banks and controllers of the world understand that money is not value. How can they possibly have respect for something they can create infinite amounts of? They fool the people into treating money as having value. People trade their valuable labor for money that was put into the system as debt, with interest due on it. It is a sick system and a huge con.

Mon, 01/11/2016 - 10:35 | 7028959 DontFollowMyAdv...
DontFollowMyAdviceImaDummy's picture

sell the bounce?  so THAT'S WHY ol' gartman went short and everything is spiking today only to come crashing down as soon as gartman goes long again?

maybe the maxtrix is breaking down and someone needs to monkey with the basecode again... paging dr yellen, paging dr yellen... or do we need doctor jellyfinger this time?

Mon, 01/11/2016 - 10:45 | 7028992 Winston Churchill
Winston Churchill's picture

Gartman just hasn't found his true calling yet.If he can just keep his consistently wrong record

I see him going far,even Chair of the FedRes.

Mon, 01/11/2016 - 11:20 | 7029134 r3ct1f13r
r3ct1f13r's picture

So if Gartman is correct when he is incorrect. Should he be correct, then he will become incorrect.


I got it now.

Mon, 01/11/2016 - 10:38 | 7028966 Mark Mywords
Mark Mywords's picture

Just like 2008. Same playbook.

Then again, it's all from the same playbook.

Mon, 01/11/2016 - 10:40 | 7028971 JenkinsLane
JenkinsLane's picture

They're the market equivalent of those two little girls in The Shining.

Mon, 01/11/2016 - 10:44 | 7028985 FreeShitter
FreeShitter's picture

Hi goyim, do you wanna play?

Mon, 01/11/2016 - 10:49 | 7029001 JenkinsLane
JenkinsLane's picture

Goyim? That's a word I haven't come across before. What does it mean?

Mon, 01/11/2016 - 10:43 | 7028977 Element
Element's picture

I don't buy it, (no pun) dude with stocks wants to sell, so tries to panic sellers and potential buyers?


Mon, 01/11/2016 - 10:42 | 7028980 booboo
booboo's picture

Musical Chairs in a burning casino with one small exit door that swings in.

Mon, 01/11/2016 - 10:45 | 7028991 White Mountains
White Mountains's picture

Make your own escape hole through a wall.

Mon, 01/11/2016 - 10:48 | 7028996 jakesdad
jakesdad's picture

more like a burning nightclub where the bouncer & velvet rope are on the INSIDE dediding who gets to leave...

Mon, 01/11/2016 - 12:02 | 7029375 new game
new game's picture

bouncer said no chainsaw allowed, so i stayed out...

Mon, 01/11/2016 - 10:59 | 7029024 Janet Shalom Be...
Janet Shalom Bernanke's picture

Why are the green chutes brown and shriveled?  

Did someone put too much manure fertilizer on them?   Everybody knows that green chutes need sunlight to grow, not unlimited manure fertilizer!!  


Only hope now is to get rid of the manure spreaders, that may help.

Mon, 01/11/2016 - 11:07 | 7029065 buzzsaw99
buzzsaw99's picture

the last two usa bear markets (not saying this is one) lasted 1.5 - 3 years. the bear in japan lasted decades. no way i'm buying anything equity-related for at least 1 - 3 years. more probably never. they made their bed let them stew in it.

Mon, 01/11/2016 - 11:13 | 7029098 Duc888
Duc888's picture




Off topic....

RIP Mr Bowie


This song reminds me of TheBernanke.

Mon, 01/11/2016 - 11:32 | 7029199 CitizenPete
CitizenPete's picture

Is this what algos look like?

Mon, 01/11/2016 - 11:33 | 7029204 CitizenPete
CitizenPete's picture



The End of the Monetary Illusion Magnifies Shocks for Markets

Mon, 01/11/2016 - 11:39 | 7029240 Pi Bolar
Pi Bolar's picture

Use any bounces as selling opportunities - JPM.

What`s a bounce?? 4 minutes of buying?


Mon, 01/11/2016 - 16:03 | 7031029 Kefeer
Kefeer's picture

The normal "bad news is good news" for the markets has disappeared with the "lift-off".  Perhaps that phrase was the banksters "leaving Dodge"?


I do not remember a day where the "bad news" was so overwhelming.  Also, the large retail PM dealers have mostly "quirky" junk they are selling and the variety of sovereign coins and bars in both gold and silver is diminishing and quantity is substantially lower like I have not seen.


I think surreality is about to meet reality; this would mean a bank holiday(s) should be next; started by a very large bank failure(s) the US I believe Citi Group will be thrown under the bus as they have such accumulated massive oil derivative exposure shortly (as other big banks were reducing exposure) after Kerry meet with the Saudi King in Aug 2014 and that was when oil began its massive plunge - coincidence?  Don't think so.  Epic failure? For sure.  We all will be paying along with children and grand-children.



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