Happy New Year. I noticed some unusual market behavior today. Stocks that normally move together simply didn’t. Names like Apple, Adobe, Amazon and Microsoft showed unusually wide dispersion. And in the AI space the moves were even more disconnected, with some stocks jumping while others drifted lower on no clear news.
This looks like year-end mechanics working their way through the system. Window dressing, tax-related selling and early-year buybacks can temporarily distort normal relationships. Even though the broader market barely moved, these imbalances can stick around for days or even weeks before things normalize. For option traders, those short-term disconnects can be useful, especially when you focus on familiar names and look for price action that feels out of line.
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