Technical buying could spur significant rally for U.S. stocks: JPM

  • 📰 Reuters
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

There is more behind the recent slide in U.S. stocks than weak data, according t...

NEW YORK - There is more behind the recent slide in U.S. stocks than weak data, according to JPMorgan Chase’s head of quantitative and derivatives research, who says options hedging and technical selling contributed to the gyrations and could help the market reverse course and rally.

Even Friday’s modest positive move could spur technical buying and spell good news for equity bulls, Marko Kolanovic wrote in a note published as the market rallied on encouraging U.S. employment data.shed 3% over the first two days of October, logging its worst two-day performance since early August, after employment and manufacturing data revived worries that the U.S.-China trade war is taking an increasing toll on the U.S. economy.

When investors buy S&P 500 put options, they are buying insurance against a drop in the market. Dealers who sell this insurance are on the hook if the index drops sharply. In addition to this options-related selling, the recent sharp drop in the S&P also prompted selling by commodity trading advisors - firms that follow trends and are specialists in the futures markets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Blue Horse Shoe likes 7/11- Dollar General and Omar's Gas Station

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines