3 replies to this topic

[James Quillian]

Margin debt has backed off to a level not seen since april. This market is going to be hard to goose. The green line gives a clue to the huge level of short selling. With short interest so high, I am surprised the Fed's action didn't trigger a bigger squeeze.
I think we are about to see a time honored assumption of western economists tested. Will people borrow all of the money that is offered to them just because it is availavle? It is usually assumed they will.
While the presidents stalking horse on financial markets is available and ready to be seen doing nothing, plenty of participating firms are keeping bids under the market.
There are plenty of shorts available to be squeezed. But, can they be spooked? Who is going to buy stocks on margin?
The most noble motives are always ascribed to the folks at the Fed. A hefty drop in interest rates can be a legitimate tool in monetary policy, but is it this time? M1 had already been bumped two weeks ago. I think the news on Tuesday was directly targeted towards turning the stock market around without much regard to the effect on the overall economy. This goose is going to be harder than previous ones.

[SemiBizz]

Let me get this straight... you are trying to get a goose out of a lame duck???

[snorkels4]

since program trading is, what, 90+% now and they get their orders from ben maybe this margin stuff has no aplicability except as a sentiment read, as the margin accounts are retail??

not related much, but, that has the look of the chart of the preachers chart that demos when the fed 1st starts to lower the market tanks:

[pdx5]

since program trading is, what, 90+% now and they get their orders from ben maybe this margin stuff has no aplicability except as a sentiment read, as the margin accounts are retail??

not related much, but, that has the look of the chart of the preachers chart that demos when the fed 1st starts to lower the market tanks

That is an interesting chart! Thanks.