Analysis from JP Morgan says that the worst of the fall in the stock market last week is likely finished.
I wonder if its wishful thinking, but based on the past decade of stock market action (up, up, and away!) maybe he is correct. Anyway:
- selling by algo-driven trading strategies is over
- this systematic selling is around 70% complete, so still some to come:
- "The remaining part of systematic selling is from volatility targeting (insurance, parity funds, etc.) which will go on for several more days"
The JPM analyst recommends buying unless volatility carries on higher (which is a bit weird as its the selling into the elevator-shaft move that's that's driving volatility higher, yeah?)
JPM client note, via Bloomberg
