JPMorgan Says Recent Slide Opens Dip Buying Window

Benzinga

JPMorgan said the recent four-day, 3.4% drop in U.S. stocks created a technical washout that may already be finished, with the bank buying the dip and seeing no change in fundamentals. Traders are focused on Nvidia’s earnings and the September jobs report, which could set the market up for a push toward all-time highs. Some strategists warn that stretched positioning and high valuations could still trigger further losses.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02J.P. Morgan said the 43.4% slide in U.S. stocks created a technical washout that could already be over.

00:08Andrew Tyler said there have been no changes to the fundamental story, and the bank is buying the dip.

00:13Traders are watching Invidia's earnings in the September non-farm payrolls report,

00:16which Tyler said could set the stage for a run toward all-time highs.

00:20The sell-off lowered the S&P 500's forward PE to 21.9.

00:24It's lowest since August.

00:25And Deutsche Bank data showing equity positioning slipping back to neutral with discretionary investors turning underweight.

00:32Submarket leaders warn that distressed positioning and high valuations could lead to further losses

00:36and urge investors to scale back exposure to major technology names.

00:41For all things money, visit Benzinga.com.

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