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Good evening everyone.
Here is the chart which should worry every stock investor.
It is a long term chart of NYSE margin debt.
And this is the reason why investors could keep on bidding stocks up to ever higher prices over the last 9 years.
It is the stock investors credit card bill!
This debt is why a crash will happen.
Margin fuels the rise in a bull market,
But margin also triggers massive gaps lower and intensive AUTOMATIC selling into air gaps on the downside.
The scramble to stop the bleeding on the downside forces people to sell at any price.
This debt is now a mill stone around the necks of market.
I don't expect the concept of margin debt to survive the next depression.
By the way,
Notice how the chart has topped out after a five wave movement..........................
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