• 525 days Will The ECB Continue To Hike Rates?
  • 526 days Forbes: Aramco Remains Largest Company In The Middle East
  • 527 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 927 days Could Crypto Overtake Traditional Investment?
  • 932 days Americans Still Quitting Jobs At Record Pace
  • 934 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 937 days Is The Dollar Too Strong?
  • 937 days Big Tech Disappoints Investors on Earnings Calls
  • 938 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 940 days China Is Quietly Trying To Distance Itself From Russia
  • 940 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 944 days Crypto Investors Won Big In 2021
  • 944 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 945 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 947 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 948 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 951 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 952 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 952 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 954 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Where Inflowing Liquidity Goes, The Stock Market Goes ...

It is courtesy day, so we will share one of our (daily) paid subscriber charts with you.

Which chart is it?

It is our chart on daily Inflowing or Outflowing Liquidity levels.

Jesse Livermore back in the 1930's said it most poignantly: "The secret to the market is about money. If money flows in the market goes up, if money flows out the market goes down."

Of course, there is always money flowing in, and money flowing out at the same time. So the real number to track is the "net" amount of money which is what Livermore was really referring to.

With that said, we will discuss the Long Term Liquidity Flows chart seen below. First, notice that there are four Quadrants. The upper two are where the money flows are at expansion levels because the "net" amounts are positive. The lower two quadrants are where the money flows are at contraction levels because the "net" amounts are negative.

What else is there to know?

It also matters what direction the Liquidity levels are trending in.

So, let's look at today's chart ...

Where is the Inflowing Liquidity? At the close yesterday, the Inflowing Liquidity had been in Contraction territory since May 16th. On May 11th, it made its first lower/low, so it started to down trend. The next day the market gapped down.

And where was the Inflowing Liquidity yesterday?

In spite of the market moving up, the net Inflowing Liquidity went a little lower in Contraction territory. Unless Inflowing Liquidity turns around and starts to trend back up, the market will have more downside in its future. (FYI: This chart will not be shown again on this free site until sometime in June.)

Long Term Liquidity Flows

 

Back to homepage

Leave a comment

Leave a comment