The David Lin Report · Friday, September 25, 2026
Keith McCullough explains that current market dynamics are exacerbated by "way more leverage in the system" and significant retail participation through short-term options trading. He highlights the AI bubble as a key factor contributing to increased volatility compared to 2021.
“Well, because now you have way more leverage in the system. You have way more retail participation using short-term options. 70% of the daily options flow on any given day can be zero-day to expiration options trading. Uh, you have levered ETFs, it's a Yazu. I mean, I don't need to just parrot like what most people should know. But, uh, but the bottom line is that you have much more leverage to the AI bubble now versus 2021. AI wasn't even really a thing.”
“Um, so, you know, all the market cap, all the leverage, you know, all the performance, you know, that's what's really sitting out there and weighing in the balance. So, you know, there's plenty of bare market out there depending on what stock you're looking at. Like 70% of them in the S&P 500 are in drawdown or crash.”