The Melt Up, then Melt Down Narrative Has Begun to Take Shape...

It was something we discussed not long ago. Now, it's starting to become a bigger narrative.

Good morning:

I pride myself on trying to stay ahead of the rest of the writers in this world - if I can.

Some of the things that I write about become topics in Barron’s a few weeks.

However, in the case of the Meltup then Meltdown narrative, which was recently reported by The New York Times over the weekend. “The Dangers of a Stock Market Meltup.”

The risks are obvious, right? What goes up must come down. The markets take the escalator up and the elevator down…

But it’s only dangerous if you don’t know what you’re doing.

And it’s only dangerous if you don’t follow the basic logic of the broader herd behavior.

Tom Lee is now saying that the S&P 500 will hit 7,500.

And I’ll tell you - it’s probably going to (eventually) hit higher if we keep pumping T-Bills into the system and jacking up leverage.

Most of the mainstream media miss the mechanics of what’s happening. The problem with all this melt-up analysis is that it never delves into why markets bleed higher in the post-2008 era.

The S&…