Hartnett Reveals His Fed Capitulation Watch: "Fed Panic Is Coming... But Not Just Yet"

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by Tyler Durden
Saturday, Oct 15, 2022 - 09:45 PM

In his last note, Michael Hartnett, whose call to short the S&P almost 1000 points higher just two months ago is becoming more legendary by the day, predicted that as markets increasingly rebel against QT and the Fed's tightening cycle, they would force themselves to break amid the selling deluge which is also why he predicted that stocks would suffer new lows first, ostensibly as soon as late October, before the return of buybacks around Halloween sparked a furious bear market rally scramble, which lasts for a few months, before reversing violently into the new year when risk assets finally crash to their cycle lows - somewhere at or below 3,000 on the S&P - at which point the full-blown central bank panic which has already started to pick up speed, together with declining inflation and collapsing job market, both of which will become apparent after the midterms, will finally unleash the long-awaited Fed pivot sparking the next bull market (there is of course more in his last not, which we discussed here).

Which brings us to his latest note (available to pro subs) where, you guessed it, there is no break from his ultra-bearish views - now that him and Michael Wilson are competing whose S&P price target will hit 0 first - and extending on the point he made last week writes that "investors close to the point where all they want is to be hugged”...