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SP-500 Liquidity Crunch Warning

By RecessionALERT on April 13, 2014 in Reflections

Losses on the SP-500 on Friday 11th saw all our measures of breadth-liquidity fall into contraction, warning of a highly vulnerable market subject to further liquidity tightness and raised volatility. To many of my staff that actively trade the SP-500, this is treated as a bona fide correction warning. If you are scratching your heads as to where to find this chart updated on a daily basis in our charts menu, we will only be launching it in the coming […]

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FED in the driving seat

By RecessionALERT on November 25, 2013 in Reflections

The chart below shows how the FED is firmly in the driving seat for the U.S stock markets through the monthly growth of their balance sheet, primarily through the purchase of U.S Treasuries and Mortgage Backed Securities. You can clearly see why talk of tapering sends shudders down everyone’s spine: It is interesting to note that in the prior economic expansion, the economy and company earnings clearly were in the driving seat – the good old days when good news […]

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