Sector Investing

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Margin debt falls in the month of March from February's record high:

http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=3153&category=8

 
           End of month	     Margin debt     Free credit cash 	 
 January     $451,298	      $126,563	         $165,336 
 February   $465,720	      $128,676	         $159,520 
 March	    $450,283	      $130,251	         $163,485

On the surface this might seem good as it removes some risk of a larger fall in the market.

Fall in the market?

Yesterday the NYSE closed at a new record high! But behind the scenes market breadth has been eroding for months. In fact many sectors better represented by the Nasdaq have already fallen dramatically.

Market sell off are always followed by investors reducing their market debt. Unfortunately it is often due to margin calls.

RtS