The stock market followed through yesterday’s decline after the disappointing Fed statement describing the path of the monetary policy the US central bank intends to follow in 2019. Hedging activity surged, options traders bought puts at a record rate. The put/call ratio hit the highest level of the year. This is a sign that we are approaching the lowest point of the recent decline. The weekly investment survey among active professional portfolio managers points out to a high level of skepticism among this category of investors and hit also an extreme of bearishness. Ahead of the last expiration of futures contracts and options in 2018, the market may stabilize over the next few trading sessions before a last selloff at the beginning of 2019.

We wish our readers a Merry Christmas.