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CNBC reported margin debt now at $265B, up big again in Feb. Possibly enough pain in certain sectors that margin call liquidation comes into play, not widespread, but close to being a general problem should the NASDAQ decline continue [which I think is probable]. Like I opinied a month ago,confidence in NASDAQ has been a mile wide and an inch deep. I think bullish speculators must be aware deep inside what could happen to their favorites in a shakedown if a company like P@G can get cut in half. No one likes to give up big profits, once a run on the bank starts. First they are un-nerved, then panic is not far away. Yes, the NASDAQ has rallied to new highs after every small dip, but despite a possible reflex rally, I think this one is more serious. thanks,Mike PS, Keep an eye on SFE-very solid in todays dismal market despite a quick run up from $150, also, Tellabs which is showing a rare sign of positive relative strength. Despite that, took a little off the table on each from buys made in '93, '94. [tax man made out today!] Cash will be king if my instincts are correct. |
