Markets Poised for Year-End Rally Driven by Seasonal Trends, Bearish Sentiment, and Technical Signals
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Markets primed for year-end rally due to seasonal trends, bearish sentiment, and short positioning.
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November and December historically strong months for stocks.
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Overly bearish sentiment from hedge funds, CTAs, and retail investors signals bullish shift coming.
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Technical indicators like Zweig Breadth Thrust and golden crosses suggest pivot from oversold to overbought.
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Rally typically starts with hedge funds covering shorts, extends as more join in - CTAs, active managers, retail.