Technical buying could spur significant rally for U.S. stocks, says JPMorgan Chase

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 92%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Technical buying could spur significant rally for U.S. stocks, says JPMorgan Chase GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.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.

The benchmark S&P 500 index 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.Dismal manufacturing data on Monday dragged the S&P down past several technical levels, prompting dealers who had earlier sold options to add to the selling pressure as they hedged their positions, Kolanovic said.

To counter this exposure, they sell increasing amounts of S&P 500 futures as the index falls, thereby adding to selling pressure.

 

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

 /  🏆 5. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. short sellers circle cannabis stocks as profits dwindleU.S. short sellers circle cannabis stocks as profits dwindle GlobeInvestor
Source: globeandmail - 🏆 5. / 92 Read more »