At the end of each month and the last trading day of the quarter the big institutional players, hedge funds, mutual and ETF funds realign the weightings of their portfolios. For example, if the allocation was 50% stocks and 50% bonds and the stocks outperformed in the portfolio the fund may decide to increase the weighting for stocks to 70%. This would mean the fund or investment firm would sell bonds and move that money into stocks.
According to MarketEar, the S&P 500 futures outperformed bonds by more than 9%. This has only happened six other times since 2000 at this point in the month (the 23rd). In each of those six instances, equities underperformed Treasuries over the five trading days leading into the month-end. No one really knows how the last trading day of November will end but this could be a hint; Goldman Sachs sees $36B in US equity selling, the 4th largest since 2000 and JPM sees around $160B in global equity selling.
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