We need some more kindling to keep this fire going. With markets buffeting against recent highs, the vaccine factor’s ability to stoke bullish sentiment is having a diminishing effect. Europe is having a second day of chopping trading on lower volumes, as investors wait for the next catalyst. Progress on the US stimulus bill, or a breakthrough in the (seemingly perpetual) Brexit talks, should see markets leg higher, though for how long remains a mystery. For now, as markets trundle sideways in a state of short-term purgatory, the overall sense is that investors are taking risk off the table after the aggressive moves higher in November, which is reflected well by our pad today that has a 2-to-1 sell skew.
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