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To: Geoff who wrote (4217)8/10/1998 6:11:00 PM
From: Sawtooth  Read Replies (2) | Respond to of 10852
 
<<But if many investors are buying on margin, I would take that as a bullish sign, which may end up being a contrary indicator, though I am not well-versed in margin analyses.>>

Many investors buying on margin might also be construed as a market top approaching a blow-off; a plunging market feeds ferociously on itself as margin calls are made.

Margin is a very personal decision, IMO; I'm personally staying away from margin right now as I think the likelihood of continued quick and significant pullbacks is relatively high. Margin used at the right time, of course, gives tremendous leverage but also requires a firm, disciplined exit strategy. Good luck!