Morgan Stanley’s Trading Desk Sees ‘Fragility Rising’ in Stocks

Morgan Stanley’s sales and trading desk warns trend-following traders are closer to unwinding their outsize market positions, while options dealers look poised to divest in a bid to hedge their equity exposures.

Stocks fell for a third session Thursday, with the S&P 500 falling 1.6% to the lowest level since June. Along the way, the index undercut its 100-day moving average for the first time since March. The benchmark also dipped back below its 10-day and 50-day averages after flirting with them since August. These trend lines are widely watched by traders to gauge the market momentum.

Another player whose positioning is shifting: Dealers on the other side of options transactions who are obliged to buy and sell stocks to maintain a market-neutral stance. Their exposure, known by esoteric concepts like gamma, was citing for contributing to this month’s market calm.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

China Stock Trading Tumbles to 2023 Low as Market Loses SteamChina’s stock turnover sank to a new low for 2023 on Tuesday, with just 636 billion yuan ($87 billion) worth of onshore equities changing hands in the near $10 trillion market. That compares with the 900 billion yuan average for the year.
Fonte: BNNBloomberg - 🏆 83. / 50 Consulte Mais informação »