Margin debt levels have surged, indicating high investor confidence but increased risk.

From Investing.com: 2025-02-24 08:31:00

On Friday, China reported a new coronavirus found in bats, striking fear of another potential pandemic. The virus, HKU5-CoV-2, is similar to the deadly MERS virus, causing concern for a repeat of history. The market reacted with a sell-off, triggering a MACD “sell signal” and a retest of the 50-DMA. While the full impact remains uncertain, investors must monitor the situation closely. Additionally, margin debt levels have surged, indicating high investor confidence but also increased risk. The rise in leverage and speculation, along with exuberance in the market, calls for cautious portfolio management to mitigate potential risks.



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