In today’s market, low-touch volumes and quiet markets are becoming the norm. According to JPMorgan’s trading desk, this trend is evident in the recent de-grossing of machines, quants, and multi-strategy funds. While high-touch volume (HT) has seen a decline of around 10% compared to the 20-day average, low-touch volumes have increased by 25-30%. This discrepancy suggests that there is a lack of demand on the desk for typically shorted names such as TOST, EFX, GPN, and FISV.

However, despite this trend, JPMorgan’s trading desk remains optimistic about the market’s potential for growth. They believe that getting through the Fed meeting on Wednesday will help to boost risk appetite, with a pricing of around 33% chance of a hike. Additionally, the upcoming large-cap earnings bonanza, featuring companies such as META, MSFT, QCOM, AMC (Wednesday), and AAPL and AMZN (Thursday), is expected to provide further insight into the market’s performance.

It is important to note that while the trading desk may have a positive outlook, it is crucial to approach the market with caution. With a pricing of around 33% chance of a hike, there is still a significant possibility of a negative outcome. Therefore, it is essential to stay informed and adaptive in the ever-changing landscape of the financial markets.