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 . . .
Fascinating stuff: Carl Størmer points us to this amazing map of the United States. Each state’s economic output is analogized to another country’s GDP. click for larger chart: Notable omissions: U.K., Japan, Germany, China, Russia, Italy. I cannot vouch for the precision of this, but by eyeball, it looks about right. Carl adds: “When seeing…Read More