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Nomura: Brace For A Frenzy Of Stock Buying On March 29... Here's Why

Tyler Durden's Photo
by Tyler Durden
Friday, Mar 26, 2021 - 08:12 PM

On Tuesday, we previewed the coming month-end "clash" between forced selling on one hand, which according to JPM could be as much as $316BN across mutual funds, and vol-control and quant buying now that the March VIX surge is out of the 12-month look back window.

Picking up on this observation, Nomura's Charlie McElligott notes that it was the latter of these two forces (split into two discrete "flows") that helped reverse the tide in US equities just after the European close which coincided with a violent initial down-trade. As McElligott explains: