00:00Cameron Dawson of New Edge Wealth writing equities became overbought and narrow with an upside driven by a small cohort
00:05of names.
00:06This was a recipe for a pause in the recent powerful moves. Cameron joins us now for more. Cam, good
00:10morning.
00:11Good morning.
00:11Is that what this is, just a pause or something more than that?
00:14It's perfectly normal and perfectly prudent to see markets pause after having what was a very parabolic advance in a
00:22narrow cohort of names
00:23that were driving the vast majority of the upside in the overall market because they became such a huge weight
00:29in the index.
00:30And we were seeing certain extremes in some of this trading.
00:34You saw flows into leverage ETFs, option flows being very extreme.
00:38And you also saw this narrowness really not be consistent with an overall new high in market.
00:44So it made this fragile. We think it is a pause.
00:47But at the end of the day, when you have an over 18 percent weight in a cohort of names
00:51that went vertically up,
00:53a simple correction in those names back to trend could be damaging for the overall market cap weighted index.
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