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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Return to Sender who wrote (59995)5/25/2013 11:33:48 AM
From: Return to Sender  Respond to of 95358
 
Investors Intelligence Poll shows more Bulls and less Bears than at any time in the last two years:

schaeffersresearch.com

At the same time margin debt reaches an all time high whilst the AAII Poll goes overly bullish as well:

247wallst.com

Forming market tops can take many months. Who knows if in this case with the super accommodating QE Infinity if in this case we could be talking years instead of months but I have to warn those smart enough to be reading this post to be careful.

I recently noticed something at my E*Trade account that I have not seen since the market sold off in 2000.

When I view my brokerage portfolio there is a new tab that says in red "New Margin".

I click on it and it tells me what percentage of cash I need in my account to hold ownership of each position.

AMAT for instance says 25%. What it does not tell me, nor will it tell you, is that if the market sells off quickly that E*Trade (like any broker) can change their margin requirement and sell your positions at a loss to you. They will do this to protect them from losing the money they are lending you. They can change their margin requirements at any time and call away your stocks to cover their risk.

Be careful if you are using margin.

This FED QE Bubble will end badly for far too many people. The only way to avoid losing when the bubble deflates is to own outright all assets. QE Infinity is affecting everything. Just like when the bubble popped in 2007 the price of houses and stocks are again at tremendous risk of falling precipitously in my humble opinion.


RtS