Bag-holders are in place. YouTube is suggesting multiple videos making the case for a crash in 2026. AI bubble articles abound. It has been my observation that YouTube features these types of videos to draw in short sales to facilitate a huge short squeeze. When the bearish case is allowed in the media, a short squeeze is in the offing. This is December and time for the Santa Claus rally to get underway.

The Federal Reserve will lower interest rates next week, sparking a rally. Shorts will cover, just like they always do. But, there may be multitudes of longs, waiting for the next rally to sell. What if it’s not enough? What if it is discovered that the Fed has lost control of interest rates?

With so many forecasting a crash in 2026, It can’t happen that way. No one is forecasting a crash in December. A sharp gap up, that fails immediately or in a few days may provide the signal.

Don’t count this as an ironclad forecast. Certainly, there are other, even more heroic “save the market”  tricks in the hat, ready to be pulled out

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