Saturday, May 24, 2014

NYSE Margin Debt Dips In April For Second Consecutive Month: Risk Rank At No. 53 | Seeking Alpha

NYSE Margin Debt Dips In April For Second Consecutive Month: Risk Rank At No. 53 | Seeking Alpha



This is an excellent article about how margin debt levels can predict which direction the stock market will probably move.  It is not a perfect indicator, but it is still worthwhile to consider.  For example, we now have a bearish decline indication since the margin debt is falling.  This indication along with a consolidation pattern on the S&P 500 chart causes me to lean toward a market correction in the near future.  The problem is knowing the exact time.  Currently, I have both long and short positions, and I will take profits whenever a long or short position moves enough to make a gain.


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