Past weeks has been all about the positive vaccine narrative and the rotation trade. First chart offers a possible timeline via Nordea, with the first possible FDA approvals happening later in December, but before any vaccine approval, the risks of further surge in cases is very much on the table. As Nordea notes;
"Temperature delta matters for the virus spread, why the bottom in temperatures may coincide with the peak virus spread this winter."
Mid December also offers the next Fed meeting, potentially a big event, especially since the Fed/Mnuchin situation has added interesting twists to it, where Fed risks "attacking" Mnuchin and go more dovish.
Another mid December event to watch is the quarterly derivatives expiration as well as the inclusion of Tesla to the S&P index.
Given the crash of global vols, picking up some cheap(er) volatility and gamma could offer "fun times" ahead.