JPMorgan's Kolanovic Says Systematic Selling is 70% Done
- ‘Current setup favors buying the dip’ unless volatility rises
- Biggest selling pressure this week came from options hedging
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JPMorgan Chase & Co.’s Marko Kolanovic says the worst of the rout that’s wiped 4.1 percent from the S&P 500 this week is likely over now that selling forced by computer-driven trading strategies has run its course.
Stocks halted a six-day slide -- the worst since February -- with the S&P 500 clinging to a gain that at one point Friday reached 1.7 percent. The rout has been exacerbated by so-called commodity trading advisers and other systematic investors.