Credit balances in Brokerage account therefore, increase, account

studyn

An increase in Credit balances in Brokerage account means MORE purchasing power & therefore is a BULLISH SIGNAL
and this would mean that it is a bearish signal for a CONTRARIAN.
Correct?
Schweser seems to say it is the other way around
But according to CFAI, Book 1 Page 510, this should be a BULLISH SIGNAL

slackeranalyst

increase in credit means NO ONE is buying….bearish

d2rockstar

An increase in Credit balances means an increase in cash. If cash increases investors are buying less stocks, implying a BEARISH market signal.
Contrarians do the opposite, and therefore to them, this is a BULLISH signal.
Hope this helps.

bluejazzy

I remember to see credit balances as money waiting on the side ready to be used…it’s pent up purchasing power. So that means less money in stocks but more on the side waiting to be put in.
bullish for contrarians.