The last time Financials were at this level S&P breadth crashed and is now three wave corrective.

The last time Financials were at this level S&P breadth crashed and is now three wave corrective.

Two months later, see what happens this time… pic.twitter.com/vfagN6NOVD

— Mac10 (@SuburbanDrone) August 10, 2021

Volatility is now the biggest risk to this market, because it will trigger dynamic de-leveraging by momentum algos. Which will trigger more volatility, more de-leveraging, so on and so forth.

I picture central banks juggling pies while falling down stairs. pic.twitter.com/OGk24No2Dd

— Mac10 (@SuburbanDrone) August 10, 2021

Bankruptcies down for now but watch for the reversal in distressed debt, which has been falling for year.

“There were 199 distressed bonds from 113 issuers trading as of Monday, up from 193 & 111, respectively, about one week earlier, according to Trace data.”@business pic.twitter.com/EGLMj9MeJA

— Danielle DiMartino Booth (@DiMartinoBooth) August 10, 2021

My biggest mistake has been underestimating the sheer number of fools and hence the magnitude of this explosion.

My bad. pic.twitter.com/l0qE11vctK

— Mac10 (@SuburbanDrone) August 10, 2021