I have mentioned several times that this is a liquidity driven market. The government has flooded the system with money. Much of the time the economy and the stock market seem disconnected, as has been the case for the better part of last year. History has shown us that markets can and do have strong upward moves when liquidity expands and drop when liquidity contracts. This principle applies even when the economic outlook seems bleak.
Liquidity in the Market and Stock Market Prices ...
If Liquidity is moving up, stock prices have to increase. If Liquidity is moving down, stock prices have to decrease.
Common sense isn't it?
Now, with those basics, take a look at today's chart and draw your own conclusion relative to "what Liquidity is doing in the market right now".
The January 2010 edition of THE GERRITZ LETTER has been posted. Please click the link below to view it right now.
http://www.gerritz.com/pdf_docs/The_Gerritz_Letter_01_01_10.pdf
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