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Quite frankly, I am surprised that more people did not comment on this or ask how much was short interest.

This is one of the most impressive statistics I have seen in quite a while. What is really amazing is the sharp increase in margin debt from May to June of 2003. There was an increase from 7345 to 19,731. It is also interesting that NYSE margin did not increase that much, but all of the increase is in NASD (speculative?) stocks.

The NASDAQ website lists the short interest for its stocks. I took a look at some of the largest market-cap stocks and tried to see if there was an increase in short interest which would account for the huge increase in margin debt. As far as I can tell, short interest for the largest NASDAQ stocks has not increased very much over the past few months. So I would come to the conclusion that most of the increase in margin is on the long side.

I have been trying to see some signs that the bulls are running out of buying power. This could be an important clue if we get a serious correction in the next few months.

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