One week ago, BofA's Michael Hartnett drew a lot of heat from the permabears when Wall Street's most accurate strategist of the past decade predicted that a tactical rally was in the cards as one of his closely-followed buy signals had just been triggered. And while stocks did initially dip lower following his Oct 20 note as a result of aggressive mutual fund year-end tax loss selling, the S&P is now back to green from his reco following today's "dovish at the margins" Fed statement (in Goldman's words), which may have just given the green light for a year end rally.
Since then, while various other permabears such as Marko Kolanovic and Mike Wilson (most recently of "Forget about the year-end rally" fame) have continued to press their bearish recommendations, those who follow flows, technicals and positioning, such as UBS desk trader Rebecca Cheong and Goldman trading guru Scott Rubner, have echoed Hartnett's year-end rally optimism, saying that the "Pain trade is to the upside for year end."
And now, we can add JPM's giant trading desk (certainly not to be confused with the bank's cartoonish sellside equity strategists) to those seeing a market meltup into year end.
