Should you thank the Federal Reserve???

It’s a good thing and a bad thing at the same time.   What are we talking about?

The market is showing definite stress signs, but on the shorter term, more QE money is still moving into the stock market.   (Jesse Livermore had it right … “The stock market is about money.   Money flows in and the market goes up, money flows out and the market goes down”.)

After all, it was (the old Fed Chairman) Greenspan who said that the best QE bang for the buck was a rising stock market which is why we track net Inflowing Liquidity levels.

So, in spite of market stress levels, what is happening to Inflowing Liquidity levels?   Well, if  you look at today’s chart, you get the answer.  (Note: this chart is posted everyday for our paid subscribers.)

Anyway, a quick look at the Inflowing Liquidity levels and you can see that the Inflowing Liquidity went into a Contraction level (a negative net daily amount) for just two days last week and then went back up into Expansion territory on August 8th.

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