Red tape across the screen is never random. It reveals the segments of the market that were already under pressure. Leadership weakens before the story does. I’ve seen this play out in everything from industrials in 2015 to software in 2021. Liquidity thins out. Crowded trades start to wobble. And suddenly everyone is forced to reevaluate their positioning, not because of panic but because the market stopped offering cover.When the market turns red, loss aversion takes over. The pain of a loss is twice as s ...