Thursday, June 4, 2015

NYSE Available Cash..........ANOTHER PESKY FACT!

NYSE Available Cash

It is well known that margin debt has recently reached a new record high. This normally means that the market will continue to rise in the near term, as margin debt usually peaks out prior to major market tops. However, the sample size on this phenomenon is small and there can be no guarantee that it will work in the same manner every time, so we would take this information with a grain of salt. As a result, the negative credit balances in NYSE margin accounts have never been higher than they are today. Once again, this implies that once a decline gets going, these margin accounts can't possibly deploy any additional buying power– they will turn into forced sellers, which will exacerbate the downturn.

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