CAREFUL: WE HAVE A GLOBAL MARGIN CALL

CLUB/EDGE client post August 2nd. Focus on Reasons To Hedge For SPX $4,300

» CLUB/EDGE client post Friday August 2nd, 12:33 PM.

I hope this post is completely over-the-top and ridiculous, but I must say this again for all who were not in my live trading room this morning.

We should bounce here. ALL of my equity swing short price targets & intermarket tells from FX to Fixed Income have hit.

But... I see no buying I trust, yet.

In fact, despite FULLY expecting this, I just told clients, anxiously, as I head out for a week of vacation:

CAREFUL: WE HAVE A GLOBAL MARGIN CALL

Don't be cute. Yes, we could bounce, but we sliced through everything I had for support.

I warned July 19th: "market structure is breaking" and "FORCED SELLING is not done."

Fast forward to today:

THIS is a perfect storm - that may display as 'the pause that refreshes' - of FORCED SELLING that is not done big picture, because...

1. SAHM RULE TRIGGERED
2. VIX BACKWARDATION TRIGGERED
3. NEGATIVE DEALER GAMMA BEGETS NEGATIVE GAMMA
4. VOLMAGHEDDON 2.0 RISK
5. CTA'S FORCED SELLING & STOCK BUYBACK BLACKOUT PERIOD
6. CONCENTRATION RISK STILL DERISKING
7. YEN CARRY TRADE UNWINDING
8. BASIS TRADE UNWINDING
9. ENTIRITY OF YIELD CURVE COLLAPSE
10. GOLD 'AS COLLATERAL' AT RISK OF SELLING-OFF

I could go on but these are just my Top Ten.

High Yield OAS credit spreads are about to blow out and oil weakness can accelerate lower.

Translation: Know what you own.

SAFETY PAYS

Hope I'm wrong & we get a helluva snap-back rally next week, but don't assume NVDA + AAPL will save us.

Also, maybe watch this short segment from @Craig Shapiro macro-advisor-craig and myself we delivered to EDGE clients on the eve of this market correction, July 9th: Reasons To Hedge For SPX $4,300