Current Liquidity Levels ..

tenteddies

Many indicators are starting to show fatigue and/or negative divergences.

Investors sometimes wonder "why negative divergences or overbought conditions just keep hanging in there with the market moving higher?"

One very important element to this behavior has to do with Liquidity levels. Old timers would be quick to tell you that if money was moving into the market, then it would go higher. If money was leaving the market, it would correct.

In-flowing Liquidity can come from various sources ... individual investors, hedge funds, mutual funds, Institutional Investors, and foreign investors. I guess we should also add the Fed and government as they technically had equity interest in the market moving higher after the bailout.

In any event, watching Liquidity levels tells you a lot about what is happening, or going to happen. Liquidity level measurements do not tell you "who" is pouring money into the market or taking it out ... neither do they tell you "why" they are doing it.

Still ... it is very important to know what is happening to Liquidity levels because they explain WHY the market continues to go up when overbought, and they also help explain why the market continues to go down when oversold.

So what is happening to Liquidity levels now?

Our most current chart as of last Thursday gives you the answer below.

Poo

they are highly correlate! But you can not use the liquidity chat to trade. Because it does not give leading indicator. It happens the same time as the market move, is it?

nctree

感谢楼主的图！

blueocean

thank you for sharing.

spo

they are highly correlate! But you can not use the liquidity chat to trade. Because it does not give ...
Poo 发表于 2010-4-5 10:04

有时候让人很疑惑，index 和liquidity到底是哪个在lead。按我的理解说，只要liquidity是正的，就有钱流进股市，index就要涨。不管今天100%明天50%，只是涨的多少的问题。可是实际呢，liquidity 从100% 到50%大盘早就跌得稀里哗啦。
institution buy/sell 也是同样的现象。

draguide

这个long term liquidity flows的数据是哪里来的？为什么查不到呢？

blueocean

one way for getting the chart on on Long Term Liquidity Flows is from subscriber Site at StockTiming.com (I never tried)

blues

thx for sharing!  The next question is that maybe the market will do the impossible which we break above 100%?!

blues

回复 1# tenteddies

But then again, tell me, which leading (or lagging or whatever for that matter) indicator is working now?