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Keith McCullough, founder / CEO at Hedgeye Risk Management, questions the risks taken by retail investors using leveraged ETFs. He highlights a 3x levered ETF that declined a further 13 percent in a single day with over 585 million shares traded. McCullough points to the surging trading volume during recent market turbulence, commenting that this compares to positive sentiment around Bitcoin and Strategy.
McCullough previously said he kept his DRAM position at the minimum size, opting not to buy more in an earlier note. He has also described financial engineering as a major scam, alleging that CNBC played a key supporting role in a separate commentary. These remarks follow his ongoing scrutiny of market risks and trading strategies.