On Sunday, I asked whether this would turn into a broader VAR shock. Last night it became clear when I saw Silver plunge 15% out of nowhere. This is a broad deleveraging across the financial system. We can see it everywhere, from crypto to popular stocks, to metals. Everywhere there is a levered position, it is under attack.
My advice is to de-risk. It is dangerous out there.
If you want to look for what else could catch up on this, my models think NKY and EWY are very rich.
NKY is 15% rich.
Momentum is rolling over.
EWY is 36% rich, and momentum is rolling over.
My VIX indicators do not give the all clear.
Be careful.