Equity Futures In Not Up 1% During Premarket Shocker!!

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Analysis by Alex King, CEO, Cestrian Capital Research, Inc.

What will happen when the next correction comes, now that we all assume equities just rise every day, as they have (more or less!) since early April? The answer is that a lot of people are going to lose a lot of money, and I am not even talking about when the market tops for real, I am talking about the next modest pullback. So much leverage is getting wound on, and I can say with confidence that most of it is not hedged out or protected with stops, that the bleeding will be real when it started. The worst of it will be in South Korean retail where you are deemed a loser at less than 5x leverage, mandatory government education on the topic notwithstanding. That will take down SK Hynix which will hit Micron and then with only a 10% pullback in such names there will be a lot of crying in the casino.

So be ready and have a plan. Use our charts, use the quantitative and/or cross-asset algos we offer, use Slack Chat, have a plan and react accordingly.

In the meantime, let’s take a look at where markets stand.