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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 689.100.0%Jan 23 4:00 PM EST

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To: Logain Ablar who wrote (40236)9/17/2003 11:43:38 PM
From: Johnny Canuck  Read Replies (1) of 69979
 
5:06PM "Bubble is back," TrimTabs warns by Jonathan Burton
SAN FRANCISCO (CBS.MW) -- A fivefold increase in margin debt at Nasdaq member firms prompted market data provider TrimTabs.com to warn Wednesday that "the bubble is back" in U.S. stocks. Margin debt rose to $26 billion at July 31 from $5.1 billion at Dec. 31 -- adding $19 billion in June and July alone. That figure represents 15 percent of the total outstanding, compared to 7.1 percent in March 2000. TrimTabs' warning follows regulatory agency NASD's investor alert Monday that trading "on margin" is up 25 percent year-to-date and many investors may underestimate the risks. The NASD alert suggests that Nasdaq members are being required to tighten margin rules after a period of relaxation, TrimTabs said. "When a loosening becomes a tightening, the affected stocks collapse. That is in part what happened in early 2000 when the Nasdaq tightened margin requirements on some of the more aggressive stocks."
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