Within 20 minutes, weโre looking at over +400% on futures - a perfect move from $VELVET ๐ฅ๐ฅ
This has been an incredible play, fully in line with expectations.
After such an aggressive pump, I think there could still be deeper downside ahead, so Iโm continuing to hold the short.
Iโve taken partial profits, moved the stop to breakeven, and Iโm letting the rest run. ๐๐ฅ
๐จInvestors have NEVER been more concentrated in stocks:
Total stock allocations across household, corporate, financial, and foreign sectors as a % of total financial assets held are up to ~51%, the highest on record going back to the late 1940s.
By comparison, this figure peaked at ~45% during the 2000 Dot-Com Bubble before the S&P 500 subsequently lost nearly -50% of its value.
At the same time, the S&P 500 CAPE ratio rose to ~41x, the highest since the Internet Bubble peak of ~44x.
This i...
โ ๏ธUS investors have NEVER been using so much leverage:
US margin debt soared $83 BILLION in April, to a record $1.3 TRILLION.
Leveraged borrowing has soared $453 billion, or +53%, over the last year alone.
Margin debt now reflects 5.5% of the US M2 money supply, the most since the 2000 Dot-Com Bubble.
At the same time, margin balances at major brokerage firms as a % of US equity market cap are up to a record ~1.3%.
An increasing number of market participants treat the market like a CASINO.
๐ดWHAT IS HAPPENING TO AI STOCKS?
Over the last 5 trading sessions, the S&P 500 excluding AI stocks has OUTPERFORMED the S&P 500 by 5.3 percentage points, the largest 5-day spread on record.
Over this period, the S&P 500 is down -3.14% while the Index excluding AI stocks is up +1.30%.
Furthermore, the semiconductor index, $SOX, is down -7.8% while the Nasdaq 100 is down -5.1% at the same time.
As a result, the 3x leverage LONG semiconductor ETF, $SOXL, is down -24.3%.
The most crowded trade...