The NYHL shows the big boost higher in stocks on the Federal Reserve's obscene QE money-pumping in Q4 into this year. Chairman Powell was concerned over a liquidity event occurring, especially at year-end, so he started printing money like a madman flooding the markets with liquidity. The world remains awash in liquidity sending stocks, bonds, real estate, art, all assets, higher for the last near-11 years.
When the new highs are off the charts reflecting traders buying any stock with a heartbeat, that is when stock market tops occur. The optimism and euphoria is rampant. No one expects stocks to ever sell off again and even if they do it will be a great buying opportunity since the Fed and its sick friends such as the BOJ, ECB and PBOC, will always guarantee never-ending stock market glory. It is fascinating to watch in real-time and the reckoning will be spectacular.
When the new lows are exceeding the new highs and doom and gloom, sadness and despair are rampant, that is when the stock market bottoms.
The red circles show tops in the stock market while the green circles show nice tradeable bottoms. What do you think will happen? This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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