Tag Archive for Negative Divergence

Is The Liquidity Tide Coming In or Going Out For Stocks?

This is an extended excerpt from the Professional Edition Fed Report Executive Summary. Note: Pages 4-10 comments correctly updated at 3:55 PM NY time. The composite liquidity indicator rose sharply last week, driven by a big Fed settlement of MBS purchases. The uptrend in the indicator is accelerating. Over the course of this latest surge,…

Primary Dealers and Their Biggest Client Off The Hook For Now, What Next?

The composite liquidity indicator edged higher last week, continuing a slow but steady uptrend. In February and March, the indicator had accelerated upward away from its 39 week moving average. That acceleration has slowed, but the indicator continues to advance. With somewhat less abundant liquidity, the government and Primary Dealers have targeted that liquidity for…

Cyclical Liquidity Flows Approach Inflection Point

The following is an excerpt from the Executive Summary of this week’s Professional Edition Fed Report. Subscribers can access the full report here.  The composite liquidity indicator was virtually flat last week on a mixed performance in its components. The indicator has recently accelerated upward away from its 39 week moving average. With demand for…

Market Sitting On The Dime

At the close of the NY cash market yesterday, 2, 5, and 8 day cycle oscillators were on the sell side, but initial downside projections around 1265 were reached on an implied basis shortly after the close. However, if the SPX does not recover above 1267 in the early going, it looks vulnerable initially to…