Not only are investors all lathered up these days – they appear to be quite levered up, too. Courtesy of the Jutia Group:
Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April. Margin debt on the NYSE registered at $384.3 billion as the key stock indices hit new record-highs. (Source: New York Stock Exchange web site, last accessed May 29, 2013.) The highest margin debt ever reached prior to this was in July of 2007, when it stood just above $381.0 billion. At that time, just like today, the key stock indices were near their peaks and “buy now before it’s too late” was the prominent theme of the day
In his weekly column, Carl Swenlin broke down the sector-by-sector technicals and concluded that the short-term outlook appeared OK for now. Still, as always, mind your stops!