While many are surprised by the ferocity of the continued selloff across markets, we are confident that does not apply to our subscribers whom we warned on Friday that the year-end selling was just getting started (see "What's Behind The Sudden Market Dump: Pensions Have $21BN To Sell As Dealer Gamma Cracks"). And with just over a day of trading left in 2024, those hoping for a last minute bounce may be disappointed.
In a note from Goldman LatAm managing director Nelson Armbrust, the trader lays out several reasons why he would bearish and why his preferred trade is to "buy a put spread for tomorrow's close to hedge portfolio length."
We excerpt from the note below (full report available to pro subs in the usual place):
