Here Are 7 Reasons Why Stocks Just Won't Stop Rallying According To JPMorgan

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by Tyler Durden
Thursday, Aug 04, 2022 - 02:20 PM

Yesterday, after the latest furious market meltup sent extremely bearish hedge fund and "long-only" managers to the edge of a nervous breakdown, we quoted JPMorgan TMT trader Ron Adler who summarized sentiment best as "Frustration Everywhere; Traders Feel Like They Can't Get Anything Right" noting the following:

Frustration sums up the past few sessions perfectly. Expensive shorts  & momentum shorts are leading the way higher for the market and tech. The consternation is profound; from P&L to positioning, traders feel like they can’t get anything right, as SPX 4200-4300 feels almost as inevitable as 3500-3600 did just a month ago (with perhaps a modest fed pivot and little new fundamentally).... Over the past few days, we continue to see substantial short covering on the desk and in our PB book, while LOs remain skewed better for sale. Shorts are nervous following names like UBER +18.9% (LO demand remains scant with mostly covers from HF supply) while moves from HKD +126.3% and QRTEB -11.0% leave many scratching their heads.

So what's going on?