HSBC forecast a near-term US stock market rally, citing reasons to be cautious

HSBC says there are reasons to cautious in the US equity markets, including:

• seasonality
• US election

But:

• we think the market may have got the order of the positioning the wrong way around
• Low near-term US earnings expectations now set us up for a further squeeze higher in equities

After the election it could be a different story though:

• we are starting to become increasingly skeptical about a sizable post-election rally
• Our view continues to be the exact opposite of the apparent current consensus: if we had to sum it up real quick, do the opposite of what worked in Q3

This article was written by Eamonn Sheridan at www.forexlive.com.