The retail trading frenzy that sparked a FOMO trade this year may be about to slow

The retail FOMO trade that helped spark a near-10% rally in the $S&P 500 Index(.SPX.US)$ last month is about to fizzle, and that could help accelerate a sell-off in the stock market, according to Vanda Research.
Individual investors have been pouring money into the stock market in the first six weeks of 2023, with average daily net purchases sitting around $1.5 billion. On Wednesday, retail investors poured $1.2 billion into stocks, according to Vanda, and they're buying everything from a slew of ETFs to mega-cap tech stocks like $Tesla(TSLA.US)$ and $Amazon(AMZN.US)$ .
Retail investors are buying the dips in stocks even as concerns about elevated inflation, higher for longer interest rates, and geopolitical tensions linger.
But seasonal patterns suggest that retail investors buying of stocks is set to fade between now and April, not because of market risks, but because of the upcoming tax filing deadline.