• The two dominant fundamental themes for the markets are risk trends and competitive stimulus programs
• Event risk like November NFPs, ECB, BoE and RBA rate decisions will tap into those key concerns
• It will be breakout technical patterns and heavy event risk versus a traditionally quiet trading month
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Ironically, we are heading into the most sluggish trading month of the year as the markets are facing an increased threat of volatility. Historically, December is both the most restrained month for activity and the most prolific for risk returns - conditions that are already painfully engrained in our markets. Yet, technicals are increasingly setting up patterns that project larger breakouts. The docket is also filling out with event risk like NFPs and central bank rate decisions that tap into stimulus and risk speculation, dominant fundamental concerns. In the Weekend Trading Video, we discuss the catalysts, underlying themes and systemic market conditions we need consider before placing our trades.
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