"Dead Cat Bounce" and Year-End Rally: Market Developments and Investment Strategies

A bit macabre, but it fits. During this downward movement, there will always be days when I question my correction scenario for the U.S. indices with a downward potential of about 3-5%. In corrections, days with sharp upward movements (but on thin volume) are often known as "Dead cat bounces."

Currently, it is still unclear whether it will be the Big Techs or the small caps (Russell 2000) that will lead the year-end rally in 2024. However, statistics still favor a positive development towards the end of the year. The high sell-off volumes this week indicate that the correction is likely to be fully exhausted.
I am already screening the markets for potential investments that show strength in this market environment. But as mentioned before, I will only dip a small "toe" in the water and significantly reduce the high liquidity ratio only when, for example, a strong wick appears on the candlestick chart at the weekly close.