- Over the past couple of weeks, we have talked about a short-term correction potential due to selling pressure from annual mutual fund distributions.
- We saw that taking place this past week with the market struggling to maintain its breakout levels.
- With the heavily skewed "put-call" ratio currently, we could see volatility pick up as options traders roll positions over into 2021, or selling occurs to take "tax losses" for 2020.
- Such could provide a reasonable trading entry for a post-Christmas "Santa Claus" rally as portfolio managers add holdings to "window-dress" portfolios for year-end reporting.
For further details see:
Irrational Exuberance - The Bulls Remain In Control