Well, if you’d been wondering at all if/when the last of the retail investors where going to indeed “pile into markets” – look no further than these last few days.
Twitter as a fantastic example making like 40% gains in the past 10 days alone, a company still yet to turn a profit. Without fail the “Santa Claus Rally” has exceeded all expectations, on the back of a market already stretched to the upper limits of reality, while currency markets sit firmly with their wheels in the mud.
Once again (as so many times in the past) here we sit with very little to trade, at a time and place where making any “major decisions” makes little sense at all.
It makes no sense at all putting money at risk in a low volume environment, where “churn” and “grind” are about all you’ve got to look forward too. The year will wind down here over the next few days, and with the start of a new year we can expect the fireworks to pick back up.
Remember – The Fed “announced tapering to start”, but that said tapering “starts” in January.
Retail investors are now in. What does that make you?