In my personal view, this “consolidation”/sell-down is good if we are to have a Christmas rally. Why? Do you expect market to rally for 2 continuous week till Christmas and New Year? It is like running a marathon: you want to save your energy for the last burst. If you run with energy right from the start, by half way, your battery will be low and even if you want to run, your legs just cannot take it. Therefore, let this market get oversold first, then the bull will have some charge in its battery. Logical, right?
However, if the market refuses to let the bull to rest, then it is another story… Funny, retailers always want the bulls to run 365 days a year.
