~Traditional and Growth Stocks are saturated and price levels are elevated, allowing highly speculative trading activity

~Companies and retail investors are taking riskier gambles: Morgan Stanley actively endorsing meme stocks

~The rising value of all equities has allowed greater amounts of leverage/margin debt to be taken on using the overvalued stocks as collateral further propping up stock prices

~Crypto’s bull run is also built on both margin leverage and the flush of cash from stimulus

~As cash stimulus tapers off margin debt will increase even further

~Margin debt to gdp is equal to and exceeding the the dot com bubble and the housing crisis eras

~Overall Margin Debt is at it’s highest level ever corresponding with ATH of the S&P 500

Evidence: https://www.investing.com/analysis/the-volume-of-speculation-index-blows-off-200558416

Credit: Jesse Felder

Evidence: https://youtu.be/9jkmvGR4NSY

Credit: Heritage Wealth Planning

~The market is now a veritable Jenga tower, The lower supports have been sacrificed and pulled out to be used to build the tower higher

~As stock prices have increased the market is becoming more and more unstable with margin debt skyrocketing

~ A single systematic event would be enough to topple the unstable market and shear off gains

~As fear sets in and stocks sell off margin will be called in initiating a downward cascade on all equities

~Major Correction In Bound

~Highly recommending Index LEAP Puts

~Moderately recommending Inverse and Inverse Leveraged ETFS on the S&P 500 and SPDR

~Minimally Recommending LEAP Puts on overvalued individual stocks

~Inflation is the smoke, Margin Debt is the dragon