1. The daily rebalancing of leveraged ETFs, the hedging associated with heavy call buying, and the pressure from short coverings create a powerful self-reinforcing feedback loop that ignores fundamentals and valuation. 2. The author reflects on the 2018 market event 'Volmageddon' and emphasizes the importance of timing in maximizing the impact of actions. 3. The author suggests preparing for the reversal of the described dynamics, considering the current one-sided market positioning.
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