zerohedge.com/markets/happy-thanksgiving-now-heres-two-reasons-why-market-could-collapse-december
Happy Thanksgiving, Now Here's Two Reasons Why The Market Could Collapse In December

Submitted by QTR's Fringe Finance

Most traders have a tendency to pay little attention to the market, put themselves on autopilot and hope for the best heading from Thanksgiving into the end of the year. This year, I’m getting a feeling that this strategy might not work well for what could be looming in December.

The short-lived rally yesterday on news of Jerome Powell being re-nominated as Fed Chair was a nice reminder that the market doesn’t like surprises, changes, or volatility of any kind. After all, the market rallied on the selection of the “hawkish” choice, between Powell and Lael Brainerd. While Brainerd was widely seen as the more dovish of the two potential Fed chairs, the market still celebrated the fact that there would be no change at the position by rallying early in the session, as soon as the news broke, yesterday. Then, reality kicked in and the market swung sharply lower during mid-day session, before doing the same at the cash close.

All three indexes finished the day far off their highs. Tech stocks got the worst of it, with the Nasdaq Composite dropping more than 1%.

I have already detailed several reasons why I believe the NASDAQ could be on the verge of a collapse without warning here: Why We Could Be Staring Down The Barrel of A Catastrophic NASDAQ Crash And Not Even Know It

Now, I want to add to those reasons.

I got this feeling yesterday, while it was taking place, that the sharp intraday reversal needed to be paid attention to.

The signs that I think do not bode well for the market heading into the holidays are:

The market’s realization that a taper is now definitely on its way.

A rotation from shitty tech names into value.

The Taper Is Definitely On Its Way

The jitters yesterday, in my opinion, were catalyzed by the realization that even though there will be...

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