Bond Speculators have piled into the largest SHORT position in history. With so much riding on recovery/reflation – if markets go back to risk-off/deflation, it could trigger a very painful unwind.

https://twitter.com/MacroCharts/status/1260162808127393793

One of my most important Models is approaching the most overbought level in history.

This is the 18th signal in 20+ years – most signals WITHOUT a Breadth Thrust led to big declines.

Stocks could rally into month-end, but 3Q20 is at full risk of a bigger Tactical regime shift. pic.twitter.com/dSP0Aev7pi

— Macro Charts (@MacroCharts) May 11, 2020

This week's Magazine Covers as always mirroring social mood – the theme is JOBS and lots of Red & Black (crisis colors):

TIME: "The Great Reckoning"
BARRON'S: "20.5 Million"
ECONOMIST: "A Dangerous Gap: The Markets v The Real Economy"

Check out the street names in the last one. pic.twitter.com/C5LzHvdDiB

— Macro Charts (@MacroCharts) May 9, 2020

Sentiment.

AAII BULLS lowest 6.5% in history (1987) – but has room to drift a bit lower.

BEARS top 2.5% ever, B/B Spread bottom 2.2%.

Similar pessimism marked the end of the 1990/2002 Bear Markets – but more *basing* was needed.

In 2008, the Bear was just getting started. pic.twitter.com/jKdXayTlnp

— Macro Charts (@MacroCharts) May 7, 2020