Teflon Don
I'm back baby
Why is this important? Well, if you look at the chart, when margin debt climbed to these extremes in 2000 and 2007 there was a big time fall. Will history repeat itself?
US Margin Debt at an all time high
- Thread starter Teflon Don
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Teflon Don
I'm back baby
Oh and one other thing. It looks like a "Head and Shoulders" is forming. There is a defined left shoulder and a head, the right shoulder looks in process but hasn't formed yet.
Head and shoulders formations are bad news.
Head and shoulders formations are bad news.
cancel2 2022
Canceled
Do you know what U.S. House of Representatives Bill “H.R. 2847 is, and what will happen after 1st July?
Teflon Don
I'm back baby
actually the rise has been pretty muted compared to the massive drop. I haven't lost anything so I am not worried. Everything depends on where you bought in. The S&P hasn't climbed to the 1850 highs. It is going to have to take out 1815 first. Could it climb higher? It could. Like I said, I am more interested in the trend than timing it. I have preserved capital and I am very happy with my trades.
My GDX, FXI, FXC and SIL trades have been working out very well. The SH was a teeny tiny loss that is more than offset by the others.
As far as margin debt, it is irrelevant whether you know anyone who does it or not, or if it is hedge fund managers that do it. Just looking at the chart above should be concerning. High margin debt is a contrarian indicator for an overbought market. I don't use margin either, but someone obviously is and because we don't or don't know anyone doesn't make it irrelevant.