We mentioned earlier the recent rise in Margin. Have a look at the following chart:
NYSE Member Firm Margin Levels
The raw numbers are not what actually matter — and adjusting for inflation isn’t significant.
The reason Margin matters is that it is potentially revealing of extreme sentiment and/or speculation (margin clerks can do major damage in a downturn).
There are a few ratios I would like to identify and convert to oscialltors relative to Margin:
Total Margin / Total Market Cap
NYSE Margin / Account Assets
Margin / Trading Volume
Total Margin / Market Volatility
The idea would be to test these versus historical tops and bottoms . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.