Stock Market Timing
Here's a timing update.
Here's an update on one of our stock market timing strategies:
Technically, there are 4 stages of stock market moves and this is and we remain in a liquidity advance. The stock market moves primarily based on liquidity - and when there's too much money fueling the stock market, you tend to get these significant trends.
That being said, eventually all good things must come to an end. The markets can go into a state of balanced liquidity - which is generally when the market sustains it's level of liquidity, but money chases returns, causing selling and buying of different assets. This creates a range bound market.
Or the stock market can go into the 4th stage, when money is flowing out of the stock market into safer assets - to the extent that stock prices continue to drop or trend lower.
For a complete discussion on the derivation and interpretation of the above indicator and to see updates, feel free to click here