Here is a brief comment from TrimTabs on margin debt. While margin debt is a major concern for many market onlookers there is no denying that when margin debt rises so do the markets. This could be the simplest reason for why the markets are again close to all time highs but the question remains… How long can this go on for?

Here’s the data from TrimTabs… Be sure to click here to check out the TrimTabs website for more great data on the markets and money flows.

Margin borrowing continues to increase.  Margin debt at New York Stock Exchange (NYSE) member firms increased $8.8 billion, or 1.7%, in April, notching a fresh all-time high of $536.9 billion.  Margin debt has set a record high in each month in 2017, climbing a total of $47.4 billion, or 9.4%, in the first quarter.

Growing margin borrowing is a bullish sign.  Our research shows that margin debt is a good leading indicator for U.S. equities.