Retail capitulation may be a new year's gift for the stock market, says this analyst

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Retail investors are skittish about this market, and understandably. Our call of the day says that may only help lure back influential investors in the new...

Ahead of a Fed decision, which holds a risk of more hawkish chatter from Fed Chairman Jerome Powell, we’ll get a closely watched CPI report in a hefty week for data, as the clock ticks down on 2022.

What normally happens around this time of year is selling of losing stocks by investors to help offset capital gains elsewhere, points out Eric Liu, co-founder and head of research at Vanda Research. The proceeds are then reinvested, with exchange-traded funds being a vehicle of choice for investors to keep up their exposure.It’s all about “retail capitulation,” which is actually a positive development for markets, says Liu. It puts retail positioning for U.S.

But he says the first quarter of 2023 could be a different ballgame, based on history that shows big bullish build-ups often take place in the first three months of the year. Morgan Stanley’s Mike Wilson also sees a “terrific buying opportunity” in that period, though a mostly sideways S&P 500 by end next year.

Even so, he says the “balance of probable outcomes” for interest rates, positioning and macro still “continue to favor a bullish view on equities here…time is on bulls’ side as we creep into 2023.”The markets Stock futures ES00 YM00 NQ00 are modestly lower, while bond yields TMUBMUSD02Y TMUBMUSD10Y and oil prices CL.1 BRN00 are flat. The dollar DXY is stronger.

Welcome to M&A Monday. Amgen AMGN is buying drug company Horizon Therapeutics HZNP in a $27.8 billion deal. Coupa Software shares COUP are surging on a report that private-equity firm Thomas Bravo is in advanced talks on a buyout. China will stop using a travel tracing app as it keeps backing away from zero COVID rules, as the country sets up more ICUs and tries to strengthen hospitals amid surging cases.

 

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Write all the articles you like, but RETAIL 👏 IS 👏 NEVER 👏 LEAVING 👏. Wall Street needs to close its short positions. WEKNOW

WallStreet capitulation would be best gift for retails.

Dream on……. 🤭 APESNOTLEAVING

We are not 'skittish' sir we are APEISH.

retail buying the dip

Lucky for you I’m a dumb ape and don’t even know what that means

Nobody is selling, the game is over

Not happening! gme

Not selling, get bent market watch! AMCtothemoon

Retail Capitulation will not happen. We're aware of the corruption in the markets and We're not leaving.

You bots, we are not capitulating

What interests me is how liquid our worthless stock is. Hate to break it to you fellas, but retail got a clue. When the share price goes lower, all we see are discounts...kinda like the hedge funds wish they could get if we capitulated LOL

Looks like I’m buying more since they wanna keep playing the petty game 🤷🏿‍♂️

How on earth does anyone actually believe this?

Hell No! AMCNEVERLEAVING

No cell no sell. APESNEVERLEAVING ApesTogetherStrong amc

🥱🥱🥱

APESNEVERLEAVING (let that sink in)

The only problem is that retail isn't selling. AMCSQUEEZE AMCNEVERLEAVING

Never going to happen. We're here to stay if for no other reason than to piss you 🤡 off. APESNEVERLEAVING

Dream on... ain't leaving. AMC APE MOASS

'It’s all about “retail capitulation,” which is actually a positive development for markets, says Liu' 🤣🤣🤣 So Retail needs to sell at a loss so 'they' can close out their underwater short positions & restart their Ponzi scheme. WE KNOW. NOT FCKING LEAVING 🦍🦍🦍 AMC GME

Lmao, one day we've already sold, next day it's a gift if we sell...

Retailinvestor NotLeaving

False: notleaving

No no no nope nah not happening!

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