Stock Markets Relentless Push Higher – Short Squeeze?

Bears Cannot Get a Breather

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Today we will be covering...

  • Today, we will look at excerpts from a Fund Managers Survey conducted by BofA. 

What are the Risks in 2026?

  • Highest risks in 2026, as per Fund Managers Survey: 

    • Inflation/Rates Rise - 45% 

    • AI CAPEX Slowdown - 26% 

    • Unemployment >5% -17% 

    • [...] 

BravoCyles on Youtube

  • Watch my latest YouTube video about intermediate- and long-term Bitcoin cycles.

    • Expect short- and intermediate-term cycles to give way to long-term cycles. 

BraVoCycles on X

  • If you are interested in financial markets, you are missing out by not following me on X, as I do not have enough space in the newsletter to post all my research, which I try to share on X. Additionally, I frequently post important real-time updates between newsletters.

Market Summary

  • A week ago, and multiple times ago, I mentioned that when a diagonal is completed, “it should be quickly retraced toward the origin,” which we are witnessing now.

  • I also warned that the Fear & Greed Index had a similar wedge setup as in early April of this year.

  • On 20 Nov, the 5-day Put/Call spiked to the second-highest level this year, except during the April bottom.

  • Retail investors bought heavily SQQQ (3X short QQQ ETF) for a net inflow of $12 billion, which was an extraordinarily high level (see the figure below).

  • The short covering likely contributed much to the speed and strength of the rebound.

  • But that has been. The $64k question is what is next?

  • We know the options, and some “tea leaves” are sending more explicit messages than the others. Let us address them one by one.

  • As you can see from the time cycle analysis, at least three to four relatively important cycles can support additional strength in December. However. . .

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