The indicator on the bottom is called the cash in/cash out indicator and it's averaged over 100 periods. It indicates net selling since the first Jpow rate cut at the end of July. There has been net selling to the tune of a running sum of -124,924,564,001.and some change the past 100 trading days on SPY. But, we're now up another 8% from the lows of 10/08.. That's a divergence. It doesn't make sense.
In order for there to be a healthy bull market/trend there needs to be the normal breathing of the security price. Trend, counter trend, trend, counter trend. Now it's never that simple but for something like the SPX to go on such a tear over the course of a month is not normal. Especially when you have net outflows on both SPY, and the QQQ. That means more people are getting out than in. But the market's going up, quick like.
We're not trading on fundamentals or earning's. We're trading on fed fuel and headlines. Meaning the market is pricing in on hell of a deal, and expecting more QE if shit goes sideways (which they'll probably get).
"As the central bank’s balance sheet has expanded, the S&P 500 has grown at almost the exact pace."
"The results: a $175 billion expansion of the Fed’s balance sheet to $4.07 trillion, representing growth of 4.5% since the operations began. During that time, the S&P 500 has risen just shy of 4%."
www.cnbc.com/2019/11...-rise-in-stocks.html
We're inflating a bubble. Again.
If we don't have some sort of a correction or pullback shortly i'm expecting a blow off the top and it'll be fucking ugly.
In order for there to be a healthy bull market/trend there needs to be the normal breathing of the security price. Trend, counter trend, trend, counter trend. Now it's never that simple but for something like the SPX to go on such a tear over the course of a month is not normal. Especially when you have net outflows on both SPY, and the QQQ. That means more people are getting out than in. But the market's going up, quick like.
We're not trading on fundamentals or earning's. We're trading on fed fuel and headlines. Meaning the market is pricing in on hell of a deal, and expecting more QE if shit goes sideways (which they'll probably get).
"As the central bank’s balance sheet has expanded, the S&P 500 has grown at almost the exact pace."
"The results: a $175 billion expansion of the Fed’s balance sheet to $4.07 trillion, representing growth of 4.5% since the operations began. During that time, the S&P 500 has risen just shy of 4%."
www.cnbc.com/2019/11...-rise-in-stocks.html
We're inflating a bubble. Again.
If we don't have some sort of a correction or pullback shortly i'm expecting a blow off the top and it'll be fucking ugly.
