{"id":55226,"date":"2021-08-14T08:00:21","date_gmt":"2021-08-14T12:00:21","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=55226"},"modified":"2021-08-14T09:59:58","modified_gmt":"2021-08-14T13:59:58","slug":"market-liquidity-is-draining-from-different-vantage-points","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2021\/08\/market-liquidity-is-draining-from-different-vantage-points\/","title":{"rendered":"Market Liquidity Is Draining From Different Vantage Points"},"content":{"rendered":"<p>On Wednesday I made a post that showed the \u201cmetallic credit spread\u201d (as coined by Bob Hoye) known as the Gold\/Silver ratio (GSR) flipped on its head (to Silver\/Gold) to indicate a dangerous situation for the S&amp;P 500, if past is prologue. Here is\u00a0<a href=\"https:\/\/nftrh.com\/2021\/08\/11\/heres-a-chart-for-98-of-market-participants-to-ignore\/\">that post<\/a>\u00a0and here is the Tweet that followed\u2026<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Here's a chart for 98% of market participants to ignore <a href=\"https:\/\/t.co\/AUJWmvxlEf\">https:\/\/t.co\/AUJWmvxlEf<\/a> via <a href=\"https:\/\/twitter.com\/NFTRHgt?ref_src=twsrc%5Etfw\">@NFTRHgt<\/a> move along, nothing to see here (unless of course there is)... <a href=\"https:\/\/twitter.com\/hashtag\/gold?src=hash&amp;ref_src=twsrc%5Etfw\">#gold<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/silver?src=hash&amp;ref_src=twsrc%5Etfw\">#silver<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/spx?src=hash&amp;ref_src=twsrc%5Etfw\">#spx<\/a> <a href=\"https:\/\/t.co\/Upnet9kdTQ\">pic.twitter.com\/Upnet9kdTQ<\/a><\/p>\n<p>\u2014 Gary Tanashian (@NFTRHgt) <a href=\"https:\/\/twitter.com\/NFTRHgt\/status\/1425505703775637504?ref_src=twsrc%5Etfw\">August 11, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Silver, with more cyclical inflation-sensitive characteristics than gold (which is more counter-cyclical with utility during liquidity crises), has broken down of late vs. its monetary daddy. The chart speaks for itself as to why caution and risk management are now warranted.<!--more--><\/p>\n<p>Let\u2019s add a couple other indicators to the case for a coming negative liquidity event and as a knock-on effect, eventual failure of the current inflation trades that have casino patrons far and wide lathered up about the big time inflation the Fed created in 2020.<\/p>\n<p>First, let\u2019s address a situation noted by an\u00a0<a href=\"https:\/\/nftrh.com\/nftrh-premium\/\">NFTRH<\/a>\u00a0subscriber where the Gold\/Copper ratio (GCR) is not confirming the Gold\/Silver ratio\u2019s rise.<\/p>\n<p>The reason I use the Gold\/Silver ratio to look forward beneath the market\u2019s surface is its relative sensitivity to inflation\/deflation, liquidity\/illiquidity. As you can see, amid the COVID crisis of 2020 both the GSR and the GCR ramped upward, as would be logically expected during a negative liquidity event. But our early indicator to the coming whopper of an inflation (as manufactured by the Fed) was the blow out and top in the GSR.\u00a0<strong>GCR did not top for another month<\/strong>. So today\u2019s negative divergence to the bullish breakout in the GSR is logical from that perspective.<\/p>\n<p>Casino patrons are happily still playing in the House of the Fed\u2019s Rising Sun as a warning whirs along beneath them.<\/p>\n<p><a href=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?ssl=1\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-104446 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=840%2C630&amp;ssl=1\" sizes=\"(max-width: 840px) 100vw, 840px\" srcset=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?w=1200&amp;ssl=1 1200w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=700%2C525&amp;ssl=1 700w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=1024%2C768&amp;ssl=1 1024w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=150%2C113&amp;ssl=1 150w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=768%2C576&amp;ssl=1 768w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=840%2C630&amp;ssl=1 840w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?resize=600%2C450&amp;ssl=1 600w\" alt=\"gold\/silver ratio &amp; gold\/copper ratio\" width=\"840\" height=\"630\" data-attachment-id=\"104446\" data-permalink=\"https:\/\/nftrh.com\/2021\/08\/12\/liquidity-alarm\/gsr-68\/\" data-orig-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?fit=1200%2C900&amp;ssl=1\" data-orig-size=\"1200,900\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"gsr\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?fit=700%2C525&amp;ssl=1\" data-large-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/gsr-4.png?fit=840%2C630&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/a><\/p>\n<p>Moving on to a couple of other indicators, note Steve Saville\u2019s view of the YoY crash in the TMS (monetary inflation) rate. This and the other global views he presents\u00a0<a href=\"https:\/\/tsi-blog.com\/2021\/08\/the-monetary-inflation-crash-continues\/\">in this post<\/a>\u00a0are still positive, although the inflation\u00a0<em>rates<\/em>\u00a0are tanking. There is still liquidity in the markets (and economy), but the trend is going the wrong way for bullish, inflationist casino patrons.<\/p>\n<p><a href=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?ssl=1\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-104453 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=577%2C320&amp;ssl=1\" sizes=\"(max-width: 577px) 100vw, 577px\" srcset=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?w=1074&amp;ssl=1 1074w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=700%2C388&amp;ssl=1 700w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=1024%2C568&amp;ssl=1 1024w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=150%2C83&amp;ssl=1 150w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=768%2C426&amp;ssl=1 768w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=840%2C466&amp;ssl=1 840w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?resize=600%2C333&amp;ssl=1 600w\" alt=\"tms\" width=\"577\" height=\"320\" data-attachment-id=\"104453\" data-permalink=\"https:\/\/nftrh.com\/2021\/08\/12\/liquidity-alarm\/tms\/\" data-orig-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?fit=1074%2C596&amp;ssl=1\" data-orig-size=\"1074,596\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"tms\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?fit=700%2C388&amp;ssl=1\" data-large-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tms.png?fit=840%2C466&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/a><\/p>\n<p>He concludes\u2026<\/p>\n<blockquote><p><em>\u201cWe\u2019ve written previously that the H1-2021 global monetary inflation reversal probably won\u2019t be a major driver of prices over the balance of this year. This is due to the time it takes for a change in the money-supply growth trend to \u2018ripple through\u2019 the financial markets and the economy. However, unless the Fed and the ECB generate a new monetary tsunami over the next several months, the G2 monetary inflation rate could become low enough by early next year to set off a boom-to-bust transition.\u201d<\/em><\/p><\/blockquote>\n<p>Of course, the Fed and other CBs could \u201cgenerate a new monetary tsunami\u201d at any time and indeed, my Continuum chart (at the end of the article) has allowed for that and still does allow for that. So\u00a0<strong>the question is whether or not the Fed will see and take active measures to forestall the coming liquidity crunch<\/strong>. Don\u2019t underestimate their ability to screw up a perfectly good liquidity crisis.<\/p>\n<p>But back on the main theme of this post, an indicator I\u2019ve never heard of, a \u201cliquidity alarm\u201d known as Marshallian K, as presented at Bloomberg by way of an\u00a0<a href=\"https:\/\/nftrh.com\/nftrh-premium\/\">NFTRH<\/a>\u00a0subscriber is going off.<\/p>\n<p><a href=\"https:\/\/finance.yahoo.com\/news\/liquidity-evaporating-even-fed-taper-200454138.html\"><strong>Liquidity Is Evaporating Even Before Fed Taper Hits Markets\u00a0<\/strong><\/a>(as reprinted at Yahoo)<\/p>\n<blockquote><p><em>The signal is obscure, but has sent meaningful signs in the past. Roughly speaking, it\u2019s the gap between the rates of growth in money supply and gross domestic product, an indicator known to eco-geeks as Marshallian K. It just turned negative for the first time since 2018, meaning GDP is rising faster than the government\u2019s M2 account.<\/em><\/p>\n<p><em>The shortfall comes from an expanding economy that\u2019s quickly depleting the nation\u2019s available money. The deficit could become a problem for markets at a time when excess liquidity is seen as underpinning rallies in everything from Bitcoin to meme stocks.<\/em><\/p><\/blockquote>\n<p>However\u2026<\/p>\n<blockquote><p><em>The Leuthold study is the latest attempt to handicap the market\u2019s outlook from the perspective of liquidity. But not everyone is worried. Ed Yardeni, the president and founder of Yardeni Research Inc., says he prefers to plot not the growth rates but the absolute level of M2 against GDP to measure liquidity. Based on that, liquidity stood near a record high.<\/em><\/p>\n<p><em>\u201cSome people start to freak out about the M2 growth rate,\u201d he said in an interview on Bloomberg TV and Radio. \u201cWhat they don\u2019t really appreciate is M2 today is $5 trillion higher than it was before the pandemic. There is just a tremendous liquidity sitting there.\u201d<\/em><\/p><\/blockquote>\n<p><a href=\"https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?ssl=1\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-104456 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=840%2C479&amp;ssl=1\" sizes=\"(max-width: 840px) 100vw, 840px\" srcset=\"https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?w=1308&amp;ssl=1 1308w, https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=700%2C399&amp;ssl=1 700w, https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=1024%2C584&amp;ssl=1 1024w, https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=150%2C86&amp;ssl=1 150w, https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=768%2C438&amp;ssl=1 768w, https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=840%2C479&amp;ssl=1 840w, https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?resize=600%2C342&amp;ssl=1 600w\" alt=\"\" width=\"840\" height=\"479\" data-attachment-id=\"104456\" data-permalink=\"https:\/\/nftrh.com\/2021\/08\/12\/liquidity-alarm\/liquidity-alarm\/\" data-orig-file=\"https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?fit=1308%2C746&amp;ssl=1\" data-orig-size=\"1308,746\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"liquidity alarm\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?fit=700%2C399&amp;ssl=1\" data-large-file=\"https:\/\/i2.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/liquidity-alarm.png?fit=840%2C479&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/a><\/p>\n<p>For its part, the global counter-party to the 2020-2021 inflation trades, the US dollar, is in bottom-making mode. This chart was used in\u00a0<a href=\"https:\/\/nftrh.com\/nftrh-premium\/\">NFTRH<\/a>\u00a0back in June to explore the possibility of an important low. Daily USD then broke above the inverted H&amp;S neckline, failed, successfully tested the SMA 50 and now here it is again, with only the late March high standing in the way of significantly higher levels.<\/p>\n<p><a href=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?ssl=1\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-104461 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=840%2C350&amp;ssl=1\" sizes=\"(max-width: 840px) 100vw, 840px\" srcset=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?w=1200&amp;ssl=1 1200w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=700%2C292&amp;ssl=1 700w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=1024%2C427&amp;ssl=1 1024w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=150%2C63&amp;ssl=1 150w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=768%2C320&amp;ssl=1 768w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=840%2C350&amp;ssl=1 840w, https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?resize=600%2C250&amp;ssl=1 600w\" alt=\"usd\" width=\"840\" height=\"350\" data-attachment-id=\"104461\" data-permalink=\"https:\/\/nftrh.com\/2021\/08\/12\/liquidity-alarm\/usd-165\/\" data-orig-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?fit=1200%2C500&amp;ssl=1\" data-orig-size=\"1200,500\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"usd\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?fit=700%2C292&amp;ssl=1\" data-large-file=\"https:\/\/i1.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/usd-1.png?fit=840%2C350&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/a><\/p>\n<p>Finally, the chart that gives me pause if I am an active bear against the markets, including the inflation\/reflation markets (like commodities, materials, banks, energy, etc.). The (monthly chart of the 30yr yield) Continuum tells us that theoretically at least, the Fed still has room to inflate before a red alert goes off and halts this desperate inflationary operation.<\/p>\n<p>If not for the beautiful right side inverted shoulder that is near perfectly in line with our original thesis of summer cool down and then renewed inflation, I\u2019d be getting whole hog bearish the markets followed by a readiness to greedily buy gold miners on the ensuing crash. That is what the market wants right now and as such, absent more of the Fed\u2019s\u00a0<del>MMT<\/del>\u00a0(TMM, total market manipulation) that\u2019s what I want to see, because it would be logical and natural. A post-boom bust. But the status of the Continuum, which as it currently stands is exactly as we\u2019d planned for (an interruption but not termination of the inflation trades) tempers the liquidity crisis view.<\/p>\n<p><a href=\"https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?ssl=1\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-104464 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=840%2C700&amp;ssl=1\" sizes=\"(max-width: 840px) 100vw, 840px\" srcset=\"https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?w=1200&amp;ssl=1 1200w, https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=700%2C583&amp;ssl=1 700w, https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=1024%2C853&amp;ssl=1 1024w, https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=150%2C125&amp;ssl=1 150w, https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=768%2C640&amp;ssl=1 768w, https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=840%2C700&amp;ssl=1 840w, https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?resize=600%2C500&amp;ssl=1 600w\" alt=\"30 year yield\" width=\"840\" height=\"700\" data-attachment-id=\"104464\" data-permalink=\"https:\/\/nftrh.com\/2021\/08\/12\/liquidity-alarm\/tyx-222\/\" data-orig-file=\"https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?fit=1200%2C1000&amp;ssl=1\" data-orig-size=\"1200,1000\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"tyx\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?fit=700%2C583&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/nftrh.com\/wp-content\/uploads\/2021\/08\/tyx-3.png?fit=840%2C700&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/a><\/p>\n<p><strong>Bottom Line<\/strong><\/p>\n<p>It is as I\u2019ve been personally struggling with lately; the market following its current signals toward a liquidity problem and potential crisis per GSR and USD, or another kick save by the Fed and other central banks as licensed by the nowhere near extreme 30yr yield Continuum above.<\/p>\n<p>In the here and now, the market has enough current liquidity to lurch onward without a big bearish event. But at some point, it\u2019s going to need more juice. The Gold\/Silver ratio is an early indicator to that.<\/p>\n<p>One thing seems inevitable; absent monetary intervention (i.e. more manipulation), this thing is going to pancake in the coming months. In the short-term we\u2019ll continue to manage what we see and hope to gauge the odds one way or the other based on new information. The Fed also sees \u2013 and probably obsesses upon \u2013 liquidity indicators like these. What\u2019s more, per the Continuum above it has license to try to combat them. #toughmarket<\/p>\n<p>Best,<br \/>\n<a href=\"https:\/\/www.ino.com\/blog\/tag\/gary-tanashian\/\">Gary Tanashian<\/a><\/p>\n<p>For \u201cbest of breed\u201d top down analysis of all major markets, subscribe to\u00a0<a href=\"https:\/\/nftrh.com\/nftrh-premium\/\"><strong>NFTRH Pre<\/strong><strong>mium<\/strong><\/a>, which includes an in-depth weekly<strong>\u00a0market report<\/strong>, detailed\u00a0<strong>market updates<\/strong>\u00a0and\u00a0<strong>NFTRH+\u00a0<\/strong>dynamic updates and chart\/trade setup ideas. Subscribe by\u00a0<strong>PayPal<\/strong>\u00a0or\u00a0<strong>credit card<\/strong>\u00a0using a button on the right sidebar (if using a mobile device you may need to scroll down). Keep up to date with actionable public content at\u00a0<a href=\"http:\/\/nftrh.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">NFTRH.com<\/a>\u00a0by using the\u00a0<strong>email form on the right sidebar<\/strong>. Follow via\u00a0<strong>Twitter<\/strong>\u00a0<a href=\"https:\/\/twitter.com\/NFTRHgt\" target=\"_blank\" rel=\"noopener noreferrer\">@NFTRHgt<\/a>.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>On Wednesday I made a post that showed the \u201cmetallic credit spread\u201d (as coined by Bob Hoye) known as the Gold\/Silver ratio (GSR) flipped on its head (to Silver\/Gold) to indicate a dangerous situation for the S&amp;P 500, if past is prologue. Here is\u00a0that post\u00a0and here is the Tweet that followed\u2026 Here's a chart for [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":31,"featured_media":55230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6920],"tags":[4273,1750,3736,9526],"class_list":["post-55226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ino-com-contributors","tag-gary-tanashian","tag-inflation","tag-liquidity","tag-notes-from-the-rabbit-hole-nftrh"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Market Liquidity Is Draining From Different Vantage Points - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"description\" content=\"The market has enough current liquidity to lurch onward without a big bearish event. 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