Yves on Financial Air Raids About to Start (Again)

Back in Mar 2007 Yves posted a prescient analysis of hitting the top of a Liquidity Mountain. He sent me this updated chart and said to start sounding the air raid sirens again. He sees stocks converging back to sentiment, which means down. You can find a complete list of his posts here. 

 

Comments

[Mamma Boom Boom]

Yves is certainly correct about liquidity. As you all know, I challenged a poster yesterday who said 'this a liquidity driven market'. He did not accept the challenge, but I will make my point, anyway.

His claim was that liquidity always drives the market. There was a time when, for the most part, that was true. But over the past 10 years there have been several times when it was not true.

But, that argument aside, I suggest that you pay attention to Yves, because he is on the right track. Specifically: WHERE'S THE BEEF?

http://www.imagebam.com/image/40ff6369595421

Actually, just about any measure you look at shows that money is being destroyed faster than it is being created.

That simple fact completely debunks the 'this a liquidity driven market' thesis.

End of story!

[Michael]

Nice chart.
Too bad it has nothing to do with reality.

[Michael]

http://www.federalreserve.gov/releases/h6/current/

[kim]

Could someone can explain to me the connection between the chart and these so called air raid sirens.

[bob m]

I don't think the bears were really here today. This looks like it is going to be a candle with a LONG wick

[Mamma Boom Boom]

Even by the feds own admission, and you know how they lie: http://www.imagebam.com/image/7753ab69633352

[Michael]

Yet another perfect "measured-move" in which C=A to the penny at today's SPY low:

111.58 - 109.52 = 2.06 (A)

111.00 - 108.94 = 2.06 (C)

Ka-Ching!

[Mamma Boom Boom]

Non-cash liquidity: http://www.imagebam.com/image/5de52c69634997

My last one. You get the idea.