With the S & P 500, rocket scientists are no longer needed to recognize that financial markets are now full of juice.
According to Bank of America, Thursday ended with a fourth highest record for a young year, up 72% from its March 2020 low. In the last 12 weeks, we have seen the largest stock inflow ever.
Here is another sign. Margin debt tracked by member firms of financial industry regulators has skyrocketed in the last two months. “I don’t know how much total equity market leverage is, but margin mortgages are trending and there was another WTF moment,” says Wolf Richter. Wolf Street Blog Author..
“This surge in margin debt over the past few months is another sign that the market is in turmoil, and everyone, whether it’s a penny stock with a similar name or not. I’m chasing everything. [Tesla Chief Executive] Whether Elon Musk mentioned in a tweet or whether it belongs to Tesla
Either the inventory itself or the EV [electric-vehicle] Whatever it is, including manufacturers or presumed EV manufacturers who may never mass-produce EVs, or legacy car manufacturers currently promoting EV investment, or Bitcoin
— Exploded higher before plunging 28% in two weeks. “
As the chart shows, margin debt spikes often precede major equity market collapses.
The good news for those investing in the market is that equity market leverage is an accelerator. “When stocks are already up and investors are confident, they borrow money to buy more stocks, and they are against their stocks because their value has risen. You can borrow more, and this additional borrowing will chase stocks, thereby increasing buying pressure and prices will skyrocket, “Richter wrote.
And the inevitable bad news is: Many leveraged investors sell prior to margin claims to avoid being forced to sell at the worst moments. “
It rose 6% on Thursday, when it announced stronger-than-expected results about 10 minutes before closing, and then fell 4% in pre-market trading.Proposed by the next CEO, Pat Gelsinger Most of its production remains inside, Rather than relying on an external foundry service.Chipmaker said it released the report early After discovering the resulting presentation hack..
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The next officials of the Biden administration have downplayed expectations of controlling the COVID-19 pandemic, along with Jeff Seiens, who is responsible for the effort.What we are inheriting is much worse than we could have imagined.The White House said President Joe Biden will extend the federal nutrition program and sign an executive order clarifying that workers can collect unemployment benefits while refusing to work in dangerous situations.
Israel, the farthest country in vaccination efforts, is still I’m having a hard time managing cases of coronavirus. European listed airlines including Ryanair Holdings
Britain’s Prime Minister Boris Johnson and Interior Minister Priti Patel fell after failing to repeat previous guarantees that Britain would return to normal by April. Start paying people with the virus to stay home.
The Economic Calendar features a flash reading of existing home sales and purchasing manager indexes. These PMIs showed in January that the situation in the euro area and the UK was deteriorating.
US Stock Futures
Dow Jones Industrial Average futures, pointing to a sharply low start
You will lose over 200 points.Crude oil futures
Yields on 10-year government bonds have also fallen
It stayed at 1.10%.
A general rule of thumb is its volatility
When the stock price goes down, it goes up, and when the stock price goes up, it goes down. But now obviously not. Hedge fund giant Man Group investment institutions have stated that there are notable exceptions to this rule. “When the volatile sector dominates the index, especially during the technology bubble of the late 1990s, there are more and more cases of simultaneous growth in equity markets and volatility. In fact, today’s S & P 500 has a similar structure.” It states.
Check out this “Hamilton” -inspired song about Treasury Secretary Janet Yellen. Click here for the complete lyrics..
comedian Dave Chappelle infected with coronavirusA few days after meeting with talk show host Joe Rogan, singer Grimes, and a previously infected mask.
Speaking of musk Launch of the latest SpaceX It is scheduled for 9:24 am in the east, if the weather permits.
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This is another sign that the market is in turmoil and everyone is chasing everything.
http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D21C62CDD123%7D&siteid=rss&rss=1 This is another sign that the market is in turmoil and everyone is chasing everything.