JPMorgan Head Of Cash Trading: "Where We Had Firmly Been In Sell The Rally Mode, We Think You Can Now Buy The Dip"

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by Tyler Durden
Thursday, Oct 20, 2022 - 02:45 AM

First, it was Morgan Stanley's Michael Wilson, flipping (tactically) bullish and calling for 4,150. Then, BofA's permabear Michael Hartnett pointing to "macro capitulation, investor capitulation, and start of policy capitulation" and strongly suggesting that the bottom is almost here. Then Goldman flow trader Michael Nocerino chimed in asking rhetorically in his latest market note if it's time to "pounce on the bounce" providing a bevy of great charts to pick from. And now, it's JPMorgan's turn.

Summarizing the equity and market narrative, JPM trader Andrew Tyler writes that as the market slides after a two-day rally this week and 10-yr yield hits 4.13% today at close, highest since 2008, the SPX is still ~1% above the post-CPI bounce on Oct 14. Which begs the question: "will the S&P sustain at the 3600 level for the rest of this year amid mixed headlines and Q3 earnings results?"

To answer the question, Tyler gives the mic to Elan Luger, Head of JPM US Cash Trading, who said the following: