Kobeissi Letter Blames Record Leverage, Not Fundamentals, for Stock Swing
The Kobeissi Letter says the sudden move in stocks has nothing to do with fundamentals — nothing changed in the last 60 minutes. In a post on X, the markets account blamed record leverage colliding with a sharp sentiment shift. Its argument: sentiment drives price, and overleveraged markets unwind fast when it flips.
The Kobeissi Letter isn't hedging. In a post on X, the markets commentary account said what's happening in stocks right now is crystal clear — and it has nothing to do with the basics. Fundamentally, nothing changed over the last 60 minutes, according to the account.
Instead, it pointed straight at leverage. Per the account, this is the product of record levels of leverage colliding with a sudden shift in market sentiment. And sentiment, it argued, is the ultimate driver of price.
The theme isn't fresh from the account. It said it has been commenting on historic levels of leverage in today's markets for months. This, it added, is precisely what happens when sentiment reverses in an overleveraged market.
The account didn't attach specific levels or name individual stocks in the post, and it said it would have more to say shortly. For now, its message to traders is blunt: the plumbing of the market, not the fundamentals, is doing the talking.
TopicsThe Kobeissi Letter · X
Source: x.com
Written by Paparazzi with AI. Not financial advice.
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