4 replies to this topic

[skyymaster]

Does anyone know if the money machine that has been pumping "Liquidity" down for maintenance today?

[fib_1618]

Does anyone know if the money machine that has been pumping "Liquidity" down for maintenance today?

Actually, I haven't seen any indication of the FED having much to do with money that's available for investment for about a year now. All of this is part of the sloshing effect created by the tsunami of money that entered the market from the 2002/2003 lows, and added during 2004. From that point, it's become more of a global event.

Fib

[skyymaster]

Does anyone know if the money machine that has been pumping "Liquidity" down for maintenance today?

Actually, I haven't seen any indication of the FED having much to do with money that's available for investment for about a year now. All of this is part of the sloshing effect created by the tsunami of money that entered the market from the 2002/2003 lows, and added during 2004. From that point, it's become more of a global event.

Fib

Thank-you for clearing that up. With all this talk about Bernanke pumping money, it is enough to convenience one if individual research is not done.

So, in vice versa, if there is any real selling going on then are we not going see the affect of that for another couple years? For my learning

[fib_1618]

So, in vice versa, if there is any real selling going on then are we not going see the affect of that for another couple years? For my learning

Common sense would suggest that eventually this same liquidity will either dry up or move into other areas in the attempt to satisfy or increase ones standard of living. But for now, this is something that isn't fully on the front burner as it directly relates to equities. Concepts like this take time to run their course...sort of like a flood covering an area of land; depending on the depth of the flood, it can dry up in days, weeks, months or years to do so. The NYSE internals, as measured by the McClellan Summation Index, continues to suggest that any real price decay won't fully begin until sometime next year...at the earliest.

In the meantime, think of the last couple of days of action as one taking their arm in sloshing it back in forth in a bathtub, with the higher the level of water, the more of the splash effect you will see in both directions.

Fib

[skyymaster]

So, in vice versa, if there is any real selling going on then are we not going see the affect of that for another couple years? For my learning

Common sense would suggest that eventually this same liquidity will either dry up or move into other areas in the attempt to satisfy or increase ones standard of living. But for now, this is something that isn't fully on the front burner as it directly relates to equities. Concepts like this take time to run their course...sort of like a flood covering an area of land; depending on the depth of the flood, it can dry up in days, weeks, months or years to do so. The NYSE internals, as measured by the McClellan Summation Index, continues to suggest that any real price decay won't fully begin until sometime next year...at the earliest.

In the meantime, think of the last couple of days of action as one taking their arm in sloshing it back in forth in a bathtub, with the higher the level of water, the more of the splash effect you will see in both directions.

Fib

Thank you for your insight.