Tuesday, April 30, 2013

Margin Credit and Stock Prices

Source: http://www.calibratedconfidence.com/2013/03/charts-at-glance.html

When the blue line rises above the red line, is that a sign of a crash?  Where is the more recent data?

The source appears to be  http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=3153&category=8

Here is the data for the last 3 months:
Jan 2013  $364,107 (bn)
Feb 2013 $366,139
Mar 2013 $379,522

I don't know what the numbers mean, but if they drop, that's a problem.  This will happen after the stock prices drop so its not a leading indicator.  Anyways it shows that the stock market is built on a foundation of sand.

Click to View

Source: http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php

Warning sign?

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nyse_margin_debt
Source: http://pragcap.com/nyse-margin-debt-approaches-all-time-high

Another chart.

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