With the US stock market's correction in February still fresh on traders' minds, Citi is warning of another such meltdown.

Stocks have since recovered all their losses, rallied to new highs, and extended their bull-market run to a record streak. But stocks are called risk assets for a reason -- their volatility -- and Citi's equity trading strategy team is alerting clients on the conditions that are brewing ahead of the next plunge.

"Indeed, after flirting with 'euphoric' levels for the past 2 weeks, Citi Research Strategy's Panic-Euphoria model finally tipped over the threshold this week [into euphoric territory], suggesting a 3x higher likelihood of negative SPX returns over the next twelve months," Antonin Jullier, the global head of equity trading strategy, said in a client note on Wednesday.

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