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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.92+0.1%4:00 PM EST

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To: fut_trade who wrote (43219)3/15/2000 9:34:00 PM
From: pater tenebrarum  Read Replies (2) of 99985
 
Peter, sure, it looks more menacing than it probably is. however, the absolute figures ARE staggering, and so is the rate of growth. since it has exploded along with the NAZ, it is reasonable to assume that the most speculative stocks were indeed the ones which most of the margin debt went into.
i am no big fan of ratios of margin debt to market cap. the reason is, market cap is ephemeral, whereas margin debt isn't. one may influence the other, but the problem with any kind of debt is always the quality of the assets supporting it, not what the current market value of these assets is.

well, the action today was truly fascinating. there seems to be an aversion to holding cash...

regards,

hb
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