"The equally weighted Software Index is working on its highest monthly close in history"

1. Budget deficits. "The size of the deficit is wildly inappropriate for an economy at this stage in the cycle. Some of the blame is on the ballooning interest bill, but even after X-ing that out, the US has the largest deficit in the world in GDP and dollar terms."

2. Treasury buybacks. "Before Bessent's doubling move takes effect (Sep 9th), expanded buybacks at longer maturities are already twice larger than they were last year ($40b YtD compared to $22b a year ago).

3. NAAIM Exposure Index. Active managers are all-in on US equities: NAAIM climbed to 102.7, the highest reading in over 2 years. Note readings above 100 (or below -100) indicate use of leverage.

4. Retail vs. Tech. "Retail has spent August buying semis and selling software, leaving positioning skewed against the emerging relative breakout."

5. Software ATHs. "With only a few trading days left in August, the equally weighted Software Index is working on its highest monthly close in history."

ICYMI