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In our conversations and emails with clients over the past few days, it seems most are skeptical that equities can rally strongly in December.  To an extent, I understand this, given the near historic gains of November, particularly in epicenter stocks.  And at the same time, most see a case for stocks to do well in 2021, given the economic recovery.

So it seems that investors see some sort of "gap" between stocks "stalling" in December, but doing well in 2021.  If this is consensus (it might be), then investors are not necessarily positioned for a YE rally.  As we noted yesterday, history suggests stocks should rally in December -- strong markets stay strong.

STRATEGY: DeepMacro sees big November jobs report of +1.05mm, or double consensusPerhaps the most important economic data point this week is the November jobs report.  Consensus (per Bloomberg) is 575,000.  DeepMacro, the economic research firm that uses big data, sees 1.05 million payrolls.- this would be a HUGE beat and exceed the October gains of 906k- If DeepMacro is correct, the November jobs report would further fuel the December/Santa Claus rally.DeepMacro is basing its views on new job postings and the speed of filling these openings. ...

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