Why Smaller Gains May Hold The Key For Stocks In January

Early Monday, in "Stocks May Enter 'Prototypical Feedback Loop,'" I outlined familiar dynamics that could help US equities return to a kind of steady state drift higher, helped along by lagged mechanical re-leveraging from systematic cohorts. That linked post featured a few short excerpts from Nomura's Charlie McElligott, who kicked off 2022 by quantifying the scope of exposure adds from vol control and CTA trend over the past week. One piece of critical nuance that's often lost in this discus