Traders are 'surfers,' they like to make waves: Strategist
CFRA Research chief investment strategist Sam Stovall joins Market Domination to discuss market (^DJI, ^IXIC, ^GSPC) dynamics as the year concludes. "I think that traders are like surfers, and if they don't have any waves, they'll try to make them," he tells Yahoo Finance, suggesting that current market activity is being driven by investors using sell-stops to generate movement. Looking at year-end patterns, Stovall explains that traders often view the last five trading days plus the first two days of the new year as a potential indicator for the full year ahead. Stovall warns that full-year market performance could fall short of expectations "if the Santa Claus rally does not appear, meaning we have a negative return in that five- or seven-day trading period." Addressing rising yields, Stovall cautions that "psychologically, it poses a problem," noting that it could "spook" investors concerned about inflation. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith