The 7-Year auction on August 27 drew a D grade with foreign buyers taking only 60.78%, the weakest bid in months. Leveraged funds have pushed E-mini Russell 2000 shorts to the 1.98th percentile in two years, the tightest crowd on the board, while Australian dollar longs sit at the 87th. Five of six Acid Capitalist pillars, liquidity, Fed, smart money, macro and sentiment, read bearish, with only markets neutral; funding stress meeting a crowded short 48 days before the November 4 FOMC is the level to watch.