JPMorgan's Kolanovic Sees Likely Equity Move Higher for Year-End
- Strategist says setup is ripe for ‘rolling squeeze’ upward
- ‘Brutal’ October may not have been justified by fundamentals
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With all the talk about a “rolling bear market,” stock investors may want to prepare for a “rolling squeeze” higher, according to JPMorgan Chase & Co. strategist Marko Kolanovic.
“With investors positioned defensively, and leverage rapidly coming out of system, there is an elevated risk of market reversion into year-end,” Kolanovic said in a report Tuesday. “Investors should keep this risk in mind -- namely that an October ‘rolling bear market’ turns into a ‘rolling squeeze higher.”’