This is a syndicated repost published with the permission of oftwominds-Charles Hugh Smith. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
Follow the money. Find the profits!
Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves in stocks and bonds, just follow the money. Lee Adler's Liquidity Trader tracks and shows you the monetary forces that drive markets, like the daily real time Federal Withholding taxes shown in this chart. Follow the money. Find the profits! Try it for 90 days, risk free!
The current rally has reached extremes: more than three years above the neutral line of MACD and almost 500 points above the 200-week moving average.
U.S stocks have been treading water for a while, and this raises a question: is this just another pause that refreshes a market on its way to new highs, or is the top in? Nobody knows, of course, but a chart of the S&P 500 (SPX) that includes the previous tops in 2000 and 2008 offers some useful context.
The current rally has spend more than three years above the neutral line of MACD, i.e. in bullish territory. The only comparable length of time without a dip below the zero line of MACD (which reflects a significant correction) was the Great Bull Market of 1995-2000, which was interrupted briefly by the Asian Contagion in 1998.
Get a Job, Build a Real Career and Defy a Bewildering Economy(Kindle, $9.95)(print, $20)
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
LEE ADLER
