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.
A Difficult Goose
Started by
James Quillian
, Sep 19 2007 05:42 PM
3 replies to this topic
#2
Posted 19 September 2007 - 06:09 PM
Let me get this straight... you are trying to get a goose out of a lame duck???
Price and Volume Forensics Specialist
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
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Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
#3
Posted 19 September 2007 - 06:17 PM
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:
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:
Andy House, Texas Man, Accidentally Drives 2006 Bugatti Veyron Into Salt Marsh
http://www.zimbio.co...Veyron Crashing
http://www.zimbio.co...Veyron Crashing
#4
Posted 20 September 2007 - 01:02 AM
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.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule