Steady Progress, Not a Surge

Equities face challenges in quickly reaching all-time highs again due to significant market disruptions and leverage unwinding. There's a stabilization in carry trades and volatility, suggesting a cautious optimism in the stock markets. The current strategy involves buying dips near the 200-day moving average and selling rallies near the 100-day moving average, as market participants reassess their risk exposure and valuations amidst ongoing psychological factors. Overall, while a modest rally is anticipated, a swift return to previous peak values is unlikely, with many investors likely to sell into rallies.