The Quiet December Trade 🎯
December isn’t bullish or bearish—it’s operational. While most investors debate the “Santa rally,” large allocators manage optics, liquidity, and taxes. That disconnect creates distorted prices, forced selling, and setups many only recognize after January.
Where Smart Money Positions Before Year-End — and What It Means for January
BLUF (Bottom Line Up Front)
In the final two weeks of December, many large investors prioritize year-end reporting optics, liquidity management, and tax-driven trades over aggressive risk-taking. That behavior can distort price action—meaning some selling is mechanical rather than fundamental, and some strength reflects positioning instead of conviction.
Plain English: December price moves are often driven by the calendar, not the news. The edge for most investors is avoiding rushed trades, recognizing forced selling, and preparing for how prices often re-adjust in January.