Daily Price Movement / General Discussion, page-38216

That's fine for a trade and not a long term hold as you will be surprised at how far these stocks can fall.

There is so much excess in the system that every action typically produces an equal and opposite reaction so stocks can fall much further than you expect as margin portfolios are forcibly liquidated.

Margin debt is at all time highs but it is not in itself the real issue but the actual credit balances.

i understand your thinking that we will get another sharp upturn after a correction as that's all you have known but this time there will be no rebound as there is no money to " buy the dip " and hold and the selling will feed on itself

FINRA Investor credit = Free credit cash accounts + Credit balances in margin accounts - Margin debt

As you can see it's at an all time high in the charts at $509 billion dollars.

The difference with the Covid sell off is markets were already frothy and investors had taken a lot off the table and funds were available to "buy the dip "

This was exaggerated by increasing balances being further exaggerated by huge fiscal stimulus and lockdowns giving people time and money to " play" the markets.

This time those elements are missing and stocks will need 18 months to two years to work off the excess.