Hartnett: "Bad Crashy Vibes" Lead To "Credit Event"

Tyler Durden's Photo
by Tyler Durden
Friday, Mar 10, 2023 - 11:40 PM

BofA's Chief Investment Strategist, Michael Hartnett - who unlike many of his perma-this or that Wall Street peers has demonstrated an uncanny ability to call not only big directional moves but also local market top and bottoms - has been on fire for the duration of the bear market. Recall, back in August, when the market was enjoying its most powerful bear market rally of this cycle, the BofA CIO told readers of his Flow Show note to short the SPX above 4,328. That proved to be one of the best-timed market calls in history, because not only has the S&P not risen above this level some 6 months later, but the S&P proceeded to dump exactly 20% since that level, entering a bear market (at which point Hartnett correctly said it was time to buy).

Then in early January, at the start of the latest powerful short squeeze-driven meltup, Hartnett once again stuck his neck out, again correctly urging clients to "clip coupons & rent stocks in positioning says pain trade in stocks has further to go on upside" but fade any move above 4,200, a call he echoed one and three weeks later. So where did we peak? One look at the chart below will give the answer: