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Keith McCullough, founder and CEO at Hedgeye Risk Management, highlighted significant selling in the semiconductor sector. According to McCullough, more than $6.5 billion in forced selling was triggered during the recent rebalancing of SOXL, the 3x leveraged semiconductor ETF.
This large-scale movement contributed to additional pressure on the market, as noted by a source cited in the post.
Earlier this year, McCullough opted to keep his DRAM position at a minimum size rather than increase exposure, according to a previous update. Separately, he has described financial engineering as a major scam and criticized the role of CNBC in this activity, as detailed in a recent statement. These remarks come as McCullough continues to comment on sector-specific volatility and trading practices.