Use relief bounces to sell stocks and reduce risk exposure - JPM

 Use relief bounces to sell stocks and reduce risk exposure - JPM 

JPMorgan equity strategists reaffirmed their earlier stance that U.S. stocks will likely peak in Q1. Stocks are unlikely to receive the fundamental confirmation needed for the rally to extend in the second half of the year, the strategists wrote in a note. "We believe that what was a still resilient market backdrop earlier in the year, given light positioning, activity pickup, and supportive seasonal, is expiring. While parts of the market look short-term oversold, and there could be potential relief bounces, we advise using these to sell into," they said. 

The strategists believe stocks are unlikely to hit a fundamental low "until it well advanced the Fed with rate cuts.""Equities rarely tend to bottom before the Fed has stopped hiking. 

In fact, the low would not happen before it well advanced the Fed with cutting," they added. Finally, the strategists advised JP Morgan's clients to be defensively positioned while we expect value to underperform as yields continue to move lower.