Chart from dShort.com
MARGIN DEBT HITS RECORD HIGH (WSJ - MoneyBeat)
Margin debt is like sentiment; it can indicate too much complacency and extreme high margin debt usually corresponds to a top. Speaking of tops…
As I noted Friday night, sentiment was 72% bulls at the close for the day Friday. I measure sentiment with a 5-day moving average of percent-bulls based on the amount invested in select Guggenheim/Rydex funds and that sentiment value has been elevated (above 60%) or extreme (above 65%) since the end of January of 2012.
Tuesday, the S&P 500 closed up 0.6% to 1660 (rounded).
SENTIMENT remains negative at 69%-bulls (5d-MA) as of Friday’s close. That’s an extremely high value.
MY INVESTED POSITION