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

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John Pitera
Return to Sender
To: Return to Sender who wrote (50790)4/12/2014 7:18:53 PM
From: dealmakr 2 Recommendations   of 69962
 
NYSE margin debt one of the better indicators out there for showing excess speculation and correlates pretty well with market tops.

Have watched the numbers increase over the last year by about 100 billion to the Feb all time high and believe it to be the result of a lot of cheap money stretching for return.

When things turn and the funds have to dump as margin calls go out, you can see how fast they shovel the stocks out the door to meet the calls.

When firms like IB market cheap margin rates and the ability to lever up to 4.5 / 1 pain can come quickly along with portfolio destruction when the worm turns.

Nice charts.

dealmakr
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