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Y worry Murray

06/23/12 6:30 AM

#1974 RE: gloe #1973

You may be interested in Liquidity Inflows from StokTiming.com. We may have 'window dressing' yet: ;-)

Remember last Friday's discussion on what was the "missing data" was for market investors?

It was Inflowing Liquidity levels and its direction.

Jesse Livermore had it right when he commented on how the market works. He said that the market was "all about money" .... "When money is flowing into the market, it goes up. When money is flowing out of the market, it goes down."

Think about it and its simplicity. More money chasing after something typically means the price will go up ... which takes us to today's chart that measures Inflowing Liquidity levels. (The chart is updated daily and can be found on the Standard subscriber site; Section 4, Charts 8-1, 8-2, and 8-3.)

Take a look at today's chart and answer these questions:

1. Since May of this year, has the Inflowing Liquidity been in Expansion or Contraction?

2. Since the beginning of June, has the Inflowing Liquidity been in a down trend or up trend?

The answers are: 1. Contraction, and 2. An up trend. Bottom line: It is in Contraction, but up trending.

As scary as yesterday was to some, Inflowing Liquidity was still in a technical up trend even though it showed a down tick on its daily action ... because it still had a higher/low.

That bodes well for today and beyond as long as it remains in its up trend. If it drops and falls lower, into Quadrant 4 Contraction territory, then the outflow of money would drag the market down.

For now, we still have an up trend in Liquidity levels, and that is a positive.

http://www.stocktiming.com/Friday-DailyMarketUpdate.htm