⚡ LEVERAGED LONGS AT ALL-TIME HIGHS: THE FINAL FRENZY?

The numbers don't lie. The market is hopped up on maximum leverage.

Leveraged Long ETF Assets vs. Shorts: 12.5x – an ALL-TIME HIGH. That's a 3x increase since the April low. Long ETF assets are near a record $146B, while inverse ETFs have collapsed to just $12B.

CONTEXT IS EVERYTHING:

· 2022 Bear Market Low: Ratio was 1:1. Maximum fear.

· 2020 Crash: Ratio was below 1x. Capitulation.

· NOW: Ratio is 12.5x. Maximum greed.

This is the polar opposite of fear. This is the market screaming, "NOTHING CAN GO WRONG."

WHAT THIS MEANS:

1. Fuel for a Parabolic Move: If the trend continues, this leverage will act as rocket fuel. The squeeze potential is massive.

2. A Tinderbox for a Crash: This is also extremely fragile. One sharp downturn triggers a cascade of forced liquidations. The resulting sell-off would be violent and deep.

THE STRATEGY:

· Respect the trend, but respect the risk. This is late-cycle behavior.

· Tighten your stops. Volatility will be explosive in both directions.

· Prepare for a violent deleveraging event. It's not a matter of if, but when.

The crowd is all-in on one direction. Smart money prepares for the reversal. Trade with extreme caution. The leverage ratio is a contra-indicator at extremes. We are at an extreme.