Leverage Surge Amplifies Market Declines, NewEdge CIO Warns

Cameron Dawson, Chief Investment Officer (CIO) at NewEdge Wealth, stated that the observed increase in leverage in markets is being used to chase rallies, which is beginning to amplify volatility. In a statement to Bloomberg, Dawson noted that this significant jump in leverage is exacerbating market downturns. According to Dawson, investors' excessive use of leverage to capture the rally increases losses during downward market movements. This becomes more pronounced particularly during periods of rising volatility. The unwinding of leveraged positions can strengthen selling pressure and accelerate market declines. The NewEdge CIO emphasized that this leverage surge poses a risk to market stability and that investors should monitor the situation closely. Dawson warned that excessive leverage could lead to unexpected losses during market corrections. This is not investment advice.

📊 NDX — Piyasa Yorumu

▼ down · 65%

NDX experienced a 2.94% decline in the last 24 hours, with the RSI at 45.5 in weak territory. The MACD line is below the signal line and negative, indicating continued bearish momentum. The price is just above the 20-day SMA (29,381) but below the 50-day SMA (29,869), suggesting that even if a short-term recovery occurs, the medium-term trend remains weak. News headlines warn that the unwinding of leveraged positions could accelerate declines, potentially increasing selling pressure. The short-term downtrend is expected to persist, although the 20-day SMA support level may be tested.

RSI 14

45.5

MACD

-129.14

24h Δ

-2.94%

📊 DJI — Piyasa Yorumu

▼ down · 60%

The news headline contains a warning that an increase in leverage could amplify market declines. Such a warning may reduce investors' risk appetite, thereby increasing selling pressure. Technical indicators show RSI at 49.6, in neutral territory, MACD below the signal line, and price just below SMA20, indicating short-term weakness. However, being above SMA50 and yesterday's slight uptick suggest that the decline may be limited. Overall, a downside risk exists in the short term.

RSI 14

49.6

MACD

80.30

24h Δ

0.35%

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