Does Seasonality Trump Extreme Sentiment

Yesterday saw the second largest amount of call activity since this rally began in March. The last time this occurred there was a correction soon after. However, given the positive seasonality a correction might have to wait.

At the end of last year we saw extreme call buying at the end of the year and the market did not correct until a few days into the new year. As such I am holding a balanced portfolio, with short SPY hedges against my long positions.

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