'Rates Need To Stabilize' But Goldman's Equity Trading Boss Sees A "Glass Half Full"

In a somewhat crystal-ball-like comment this morning (before President Trump's post on X regarding a postponement of military strikes after productive talks with Iran, Rich Privorotsky, Goldman Sachs head of EU Cash Trading, noted a shift in market sentiment and potentially an opening here: 

"I ended last week more neutral... but the acceleration in the selloff is starting to create opportunity. 

Base case... we spend today building risk premia for the worst.

If financial conditions tighten enough, the modal outcome is a delay of direct military escalation under some yet unknown pretext.

[ZH: Trump's "productive talks"?]

Now drifting into a potential negative gamma setup post expiry into month end. 

Net... positioning is very bearish and risks are now two-sided. 

Equities were complacent to the shock...

...but the longer this persists, the more severe the economic drag. 

Path forward is clear: rates need to stabilize...

...without that, equities struggle to bottom. 

A credible off ramp is key

[ZH: Did Trump's post this morning start that ball rolling?]. 

Glass half full... SPX below the 200-day and US 30yr pushing ~5% starts to create real incentive to find a compromise."

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